EPFO faces a challenge for young subscribers who pull the entire PF group

The power of the vehicle! This is the beauty of deposits in retirement savings such as a farewell employee fund that currently provides an interest of 8.25 % on contributions.

Employee Fund Organization, who is interested in a large number of withdrawals by young subscribers, is concerned with strategies for addressing this problem and how it can be addressed.

“In many cases, it was found that subscribers pulled the entire PF group at the time of changing jobs.

The sources indicated that EPFO ​​is trying to explore strategies to encourage retirement savings, especially among young subscribers.

Under the current EPF rules, the member can withdraw the entire PF group after retirement. However, the rules allow members to also pull up to 75 % of the PF group after a month of unemployment and 100 % of the group after two months of unemployment.

While the goal of this rule is to ensure that workers who face jobs or unemployment can back away from their PF group to enter, often, EPF subscribers after resignation from the job, and withdrew their group after waiting for two months.

This could be for several reasons such as investing in other tools such as stocks where the returns may be higher or the group is used for some purchase. “Often, young people feel that there is no need to start saving to retire because it is several years away.

According to official data, EPFO ​​received a total of 7.1 million claims for the final PF settlement between April 1, 2024 and March 7 this year. From this, she settled 50 million claims of 55133.52 rupees. The number of EPFO ​​members’ accounts increased to 325 million from 117 million during the past ten years of the fiscal year 15 to 7 March 2025.