EPFO New Rules: After facing backlash for the EPFO’s revised rules for partial withdrawal of EPF funds and EPS pensions the Ministry of Labour and Employment and the EPFO came forward and defended the amendments by issuing statements. According to the Labour Ministry a social media post misled people by making false claims related to recent reforms and provisions under the EPFO. What Did The Labour Ministry Say? The Labour Ministry stated that the social media post with distorted facts regarding withdrawal rules and eligibility confused people. “The post distorts facts related to withdrawal rules eligibility conditions and access to members’ provident fund balances creating confusion among subscribers. It is clarified that the claims being circulated are factually incorrect and grossly misleading” the Labour Ministry’s statement said. On Wednesday TMC MP Saket Gokhale took a potshot at the government over the EPFO amends. He took to X and said These amendments are ‘open theft of salaried peoples own money’. The Ministry in its statement explained the revised rules step by step “There have been misleading statements published on social media about recent changes and provisions made by the Employees Provident Fund Organisation (EPFO). In order to confuse subscribers the message misrepresents information about eligibility requirements withdrawal policies and access to members provident fund balances. The allegations that are being spread are explained to be blatantly deceptive and factually false” said the Ministry in its release. EPF Withdrawal Rules Permit People To Access Larger Sums Of Money According to the Ministry several provisions for partial withdrawals confuse members leading to rejection of withdrawal claims. Earlier the members were allowed to withdraw only the employees contribution and 50-100 percent interest. Now after amendments the withdrawable amount will also include employer contribution. 75 Percent Instant Withdrawal In case of unemployment an employee can request 75 percent of the PF balance withdrawal. The 75 percent balance includes employer employee contributions and interest. The remaining amount can be withdrawn after a year. Full withdrawal of the entire PF is also allowed in retirement incapacity to work retrenchment and voluntary retirement cases. 25% Minimum Balance The Ministry has introduced a 25 percent minimum balance requirement in the EPF account because many members find their PF balance inadequate at retirement due to frequent withdrawals. At the time of final settlement 75 percent of the members had less than Rs 50000 while 50 percent had less than Rs 20000. The CBT in order to offer long-term social security after retirement as a safety net decided that 25 percent balance should be maintained in the EPF. EPS’s 36 Months Pension Rules This provision allows the member to withdraw pension accumulation after 3 years instead of 60 days. The Ministry has stated that the proposed changes will not impact pension eligibility at the age of 58. Any member is allowed to withdraw the accumulation in the pension after 10 years of job. Notably to qualify for a pension an individual should complete a minimum of 10 years of EPS membership. Additionally if the member does not withdraw the pension fund his family then becomes eligible for pension benefits for up to 3 years.