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Is your EPF really locked until retirement? Here’s what employees should know
PPersonal finance

Is your EPF really locked until retirement? Here’s what employees should know

  • October 16, 2025

News Desk

16 October 2025, 07:13 PM IST

PIB clarifies misleading EPFO claims amid opposition criticism, confirming withdrawal rules and employment data.

EPFO.jpgRepresentative photo: X

New Delhi: Amid criticism of the newly amended EPFO (Employees’ Provident Fund Organisation) rules, the official fact-checking arm under the government’s Press Information Bureau (PIB) has issued a clarification.

The opposition on Wednesday launched a sharp attack on the Modi government, accusing it of punishing India’s salaried class for what they called the government’s economic mismanagement. TMC MP Saket Gokhale was in the forefront. An X post by Gokhale made several claims regarding the new EPFO rules. However, PIB labelled these claims as MISLEADING and provided a point-by-point clarification.

Claim 1: “Of your EPF balance, 25% cannot be withdrawn and will remain LOCKED IN for your entire career until you retire.” 

PIB clarified that full withdrawal of the entire PF balance, including the minimum balance of 25%, is allowed under certain conditions, such as retirement after attaining 55 years of service, permanent disability, retrenchment, voluntary retirement, or leaving India permanently.

PIB also noted that simplified provisions allow full withdrawal of the entire PF balance, including the minimum balance of 25%, after 12 months of continuous unemployment.

Claim 2: “EPF has been made mandatory, which means salaried persons cannot escape this draconian monthly robbery by the Govt of their own income.”

PIB stated that the EPF and MP Act 1952 has always been mandatory for all establishments employing 20 persons or more with wages less than or equal to Rs 15,000 per month.

Claim 3: “Drastic rise in unemployment due to terrible economic policies.”

PIB countered that there is no rise in unemployment. According to the Periodic Labour Force Survey (PLFS) – Annual Report, unemployment figures for 2023-24 fell to 3.2% compared with 6% in 2017-18.

PIB further added that over 1.29 crore workers were added to payroll in 2024-25. The EPFO maintains nearly ₹28 Lakh Cr corpus and has earned the trust of crores of members due to its robustness, security, and higher returns, many of which are tax-free.

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