EPFO Introduces Vishwas Scheme and Digital Framework for Members

The Employees’ Provident Fund Organisation (EPFO) has announced a landmark decision that will benefit millions of employees across the country. EPF account holders can now withdraw their entire PF balance (100%) whenever needed. This move, described as a major reform towards improving the “ease of living,” was approved in a meeting chaired by Labor Minister Mansukh Mandaviya. The decision simplifies withdrawals for education, marriage, illness, and housing, providing employees greater financial freedom and convenience.

Partial Withdrawals Made Easy

In a key decision during the Central Board of Trustees (CBT) meeting, the EPFO has completely revised its partial withdrawal rules. Earlier, there were 13 different and confusing rules for withdrawals, which have now been reduced to just three categories. These include essential needs like illness, education, and marriage, housing requirements, and special circumstances. With this, employees can withdraw up to 100% of their PF amount, covering both employee and employer shares. The minimum service requirement has also been lowered from five years to just 12 months, allowing members quick access to funds.

EPF Withdrawal Rules Changed

The government has simplified withdrawal conditions to support citizens during financial emergencies. The limit for education withdrawals has now increased to 10 times, while for marriage, it is 5 times the previous limit. This change ensures that members can use their savings without delay or complex paperwork. EPFO officials have clarified that these reforms will come into effect immediately and apply to all active members.

Guaranteed Minimum Balance and Automatic Claim Settlement

EPFO will maintain a 25% guaranteed minimum balance in each member’s account to ensure long-term financial security. This amount will continue earning 8.25% annual interest with compounding benefits. Additionally, partial withdrawal claims will now be processed automatically without any documentation. The rules for final settlement have also been modified — premature PF settlements will be completed in 12 months instead of two, and pension settlements in 36 months instead of two. These steps aim to make the withdrawal process seamless and transparent.

Expansion of Vishwas Scheme and Digital Services

The CBT has also expanded the “Vishwas Scheme,” designed to reduce litigation related to penalties. Employers will now face a penalty of just 1% per month for delayed deposits, offering major relief to industries. As of May 2025, around ₹2,406 crore worth of penalty cases were pending, with over 6,000 cases in courts. The scheme will run for six months and can be extended further if needed.

EPFO 3.0 Digital Framework Launch

In the same meeting, the EPFO approved the launch of the “EPFO 3.0 Digital Framework.” This initiative aims to fully automate provident fund services, offering multilingual self-service, instant claim approvals, and online withdrawals. The goal is to make EPFO services faster, technology-driven, and transparent.

Digital Life Certificate for Pensioners

For EPS-95 pensioners, the EPFO has partnered with India Post Payments Bank (IPPB) to deliver digital life certificate services directly to their homes, completely free of charge. Pensioners will no longer have to visit banks or EPFO offices for verification, saving time and effort.

Impact on Employees

Labor Minister Mansukh Mandaviya stated that this reform will strengthen the financial independence of employees and simplify access to their retirement savings. Millions of working professionals will benefit from the flexibility and convenience brought by these changes, marking one of the biggest updates in EPFO’s history.

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