New Delhi, Oct 16: The Employees’ Provident Fund Organisation (EPFO) is facing widespread criticism after introducing new withdrawal rules that extend the waiting period for unemployed individuals to access their savings. Under the revised regulations, employees can now withdraw their EPF balance only after 12 months of unemployment, compared to two months earlier. Full withdrawal of pension funds has also been increased to 36 months, while 25% of the total EPF balance must remain untouched in the account.
The changes, which EPFO says are aimed at promoting long-term savings and corpus growth, have sparked outrage among the salaried class, who argue the move unfairly locks them out of their own money during emergencies. Critics have described the decision as “bureaucratic cruelty,” especially at a time of rising layoffs and economic uncertainty.
Trinamool Congress MP Saket Gokhale termed the move “draconian,” accusing the Modi government of punishing salaried citizens for its “economic mismanagement.” He questioned how a middle-class worker could survive for an entire year without access to their savings.
Social media has erupted with criticism, with users calling the policy “unfair” and “anti-worker.” Journalist Latha Venkatesh remarked that the new policy was “seriously unfair,” noting that people who lose their jobs or retire cannot wait such long periods for essential funds.
The Modi Government has yet to respond to the growing outrage, but opposition parties and civil groups have urged the Centre to withdraw the new rules immediately, warning that they may face legal challenges from affected employees.
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