Attacking the Modi government over the change in Employees’ Provident Fund Organisation (EPFO) rules, the opposition on Wednesday (October 15, 2025) alleged that salaried people are being punished for the Modi government’s “mishandling of the economy” and urged Labour and Employment Minister Mansukh Mandaviya to scrap the “draconian” provisions.
The opposition hit out at the government over the specific change to the period for availing premature final settlement of EPF from the existing 2 months to 12 months and final pension withdrawal from 2 months to 36 months.
They also slammed the provision of earmarking 25% of the contributions in the members’ account as minimum balance to be maintained by the member at all times.
In a post on X, Congress MP Manickam Tagore said the Modi government’s new EPFO rules are nothing short of “cruelty”.
“Pensioners and job-losers are being punished for needing their own savings. Prime Minister Narendra Modi ji — this is the time to intervene and stop Mansukh Mandaviya from destroying people’s lives,” Mr. Tagore said.
“Under the new EPFO decisions: You can withdraw PF only after 12 months of unemployment (earlier 2 months). Pension can be withdrawn only after 36 months (earlier 2 months). 25% of your own EPF will be locked forever!” he claimed.
“Who benefits from this, Mr. Modi? Certainly not the workers. Imagine a worker who loses his job or a retiree waiting for years to access his hard-earned savings — while the government writes off lakhs of crores for its crony friends. This is not reform, this is robbery,” Mr. Tagore said.
He claimed Mr. Mandaviya’s decisions will finish the lives of pensioners who depend on EPF to survive.
“Prime Minister, please intervene immediately. Don’t let bureaucratic cruelty destroy the dignity of India’s working class,” he said.
TMC MP Saket Gokhale said the new EPFO rules introduced by the Modi government are “shocking and ridiculous”.
“It is open theft of salaried people’s own money. Here’s what the new rules say: Earlier, on losing your job, you could withdraw your EPF balance after 2 months of unemployment. That minimum period has now shockingly been increased to 1 year. Basically, for withdrawing your own money, you need to now be unemployed for a full year as opposed to only 2 months,” Mr. Gokhale said.
“You can withdraw the pension component of your EPF ONLY after 36 months (i.e. 3 years) of unemployment. Earlier, you could do it after two months. And this is the worst part: Of your EPF balance, 25% cannot be withdrawn and will remain locked for your entire career until you retire,” he said.
“Imagine if a person gets laid off or loses their job. They still have bills and EMIs to pay. But the Modi government will not allow you to withdraw your own money for a full year. Even after a year, you can only withdraw 75% of your savings and that too only if you’re still unemployed,” he said.
Besides EPF has been made mandatory which means salaried persons cannot escape this “draconian monthly robbery” by the government of their own income, he claimed.
“How is a normal middle-class person expected to survive like this,” he asked.
Mr. Gokhale further asked how will a salaried person who loses their job meet their expenses for a full year when their EPF withdrawal is blocked?
“It is clear that the Modi government is expecting a drastic rise in unemployment due to its terrible economic policies. These new rules locking people’s EPF are the signs of a panicked government trying to prevent a run on the EPFO. Salaried people are being punished for the Modi government’s mishandling of the economy,” the TMC MP said.
He urged Mr. Mandviya to scrap these new “draconian” EPF rules immediately.
Congress spokesperson Shama Mohamed also demanded a roll back of the rules.
“New EPFO rules introduced by the Narendra Modi government in the name of ‘simplification’ are nothing short of looting the hard-earned money of the salaried middle class. 25% of the contributor’s amount cannot be withdrawn and will remain locked until retirement. The period for availing premature final EPF pension withdrawal has been increased to 36 months, up from 2 months earlier,” she said.
“For any partial withdrawal, the waiting period has been extended to 1 year, instead of 2 months earlier. The Modi government should immediately roll back these rules!” she said on X.
Unemployed members of retirement fund body EPFO will now be able to avail final settlement or full withdrawal of funds from provident fund as well as pension accounts after 12 months and 36 months of unemployment, respectively.
The decision to amend the scheme was taken by apex decision making body of the Employees’ Provident Fund Organisation (EPFO), the Central Board of Trustees headed by Mr. Mandaviya, in a meeting held on Monday (October 13).
Presently, the scheme provides for withdrawal of all funds from the provident fund as well as pension account after two months of continuous unemployment.
A senior official explained that the decision was taken to ensure social security benefits to the formal sector workers in the country who generally exit the ambit of the EPFO after two months of unemployment.
He explained that most of these unemployed youth are required to enrol again with the EPFO when they get another job or else they lose the chance of getting pension and other benefits as the account becomes pensionable only after combined service of 10 years or more.
Published – October 15, 2025 04:29 pm IST
