EPFO Rule Changes Spark Opposition Outcry: Salaried Workers Face Longer Withdrawal Lock
Opposition slams new EPFO rules, which extend PF withdrawal to 12 months and pension access to 36 months. Salaried workers face permanent 25% lock on savings.
Protests erupt as opposition leaders criticize the Modi government’s revised EPFO rules affecting salaried workers’ provident fund and pension withdrawals.
The recent amendment to Employees’ Provident Fund Organisation (EPFO) rules has drawn sharp criticism from opposition leaders, who claim that salaried workers are being penalized for the government’s alleged mismanagement of the economy.
Under the new rules, unemployed EPFO members can now withdraw their full provident fund (PF) amount only after 12 months of unemployment, while final pension withdrawals are allowed after 36 months, compared to the previous 2-month waiting period. Additionally, 25% of contributions in members’ accounts must now remain locked permanently until retirement.
TMC MP Saket Gokhale called the move “shocking and ridiculous,” saying it effectively restricts workers from accessing their own money during times of need. “If a person loses their job, they still have bills and EMIs, but the government now blocks EPF withdrawals for a year. Even then, only 75% of the funds can be accessed,” he said.
Congress MP Manickam Tagore described the policy as “cruel,” claiming that pensioners and job-seekers are being punished for relying on their savings. “This is not reform, this is robbery,” he stated, urging Prime Minister Narendra Modi to intervene and roll back the changes. Congress spokesperson Shama Mohamed echoed the call, labeling the EPFO rule amendments as a “looting of hard-earned money of the salaried middle class.”
The changes were approved by the EPFO Central Board of Trustees, chaired by Labour and Employment Minister Mansukh Mandaviya, during a meeting on October 13. Officials said the amendments aim to ensure social security benefits for formal-sector workers who might otherwise exit the EPFO after short-term unemployment, thereby losing pension eligibility and other benefits.
The opposition, however, remains vocal, calling the provisions “draconian” and warning that the new rules could severely impact middle-class households relying on timely access to their EPF and pension savings.
