In a major move to enhance financial flexibility for employees, the Employees' Provident Fund Organization (EPFO) has increased the auto withdrawal limit from ₹1 lakh to ₹5 lakh. This decision, made during the 113th Executive Committee meeting in Srinagar on March 28, eliminates the need for manual verification for claims up to ₹5 lakh, enabling faster and hassle-free withdrawals.
Higher Auto Withdrawal Limit: Previously, only claims up to ₹1 lakh were processed automatically. Now, employees can withdraw up to ₹5 lakh without manual verification, provided their KYC details (Aadhaar, PAN, and bank account) are updated with EPFO.
Faster Processing: Claims under the Auto Settlement of Advance Claims (ASAC) system are processed within 3 to 5 days without requiring document submissions or office visits.
EPFO is set to introduce ATM and UPI-based PF withdrawals by mid-2025. A special EPFO ATM card will allow employees to withdraw their PF balance directly from ATMs, while UPI integration will enable seamless transfers to bank accounts. The withdrawal limit for these methods will be ₹1 lakh.
Job Loss Benefits: Employees who lose their jobs can withdraw 75% of their PF balance after one month, with the remaining 25% available after two months.
Tax-Free Withdrawals: PF withdrawals after five years of service are tax-exempt. However, withdrawals exceeding ₹50,000 before completing five years attract 10% TDS (30% without a PAN card), unless the employee submits Form 15G/15H.
With improved digital infrastructure and seamless integration of over 120 databases, EPFO’s latest reforms promise faster, easier, and more accessible withdrawals, providing employees with greater financial security and flexibility.
