EPFO’s Big Move: Now Withdraw 90% of Your PF to Buy a House, No More 5-Year Wait
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The Employees’ Provident Fund Organisation (EPFO) has introduced new rules that aim to provide greater flexibility to salaried employees looking to buy their first home. These changes are also designed to make the overall withdrawal process smoother and faster, especially during emergencies. According to reports, the latest updates in the EPF scheme will benefit millions of middle-class employees who rely on their provident fund savings for major life expenses.
According to reports, EPFO members can now withdraw up to 90% of their PF balance to buy a house. This amount can be used for a down payment, house construction, or even EMI payments. Earlier, members had to complete five years of service to be eligible for such a withdrawal, but now they can do so after just three years of opening their EPF account. This benefit will reportedly be available only once in a lifetime under the updated Para 68-BD of the EPF Scheme, 1952.
Reports also suggest that EPFO has simplified the documentation process. The requirement to upload an attested copy of a bank cheque or passbook for online claims has been removed. Since the bank account is already verified during the EPF account linking with the Universal Account Number (UAN), additional verification is no longer needed. The employer’s role in verifying bank accounts has also been removed. Members can now update their bank account details directly through Aadhaar-based OTP verification.
To support employees during emergencies, the auto-settlement limit for advance claims has been raised from ₹1 lakh to ₹5 lakh. This means employees can now receive higher amounts faster, often within 72 hours, improving liquidity when they need it the most. From June 2025, members will also be able to instantly withdraw up to ₹1 lakh through UPI or ATM, according to reports.
Reports indicate that the claim settlement process has also been streamlined. Earlier, claim documents were verified against 27 parameters. Now, this has been reduced to 18, leading to quicker processing. It is being reported that 95% of claims are now settled within three to four days.
