EPFO

WHAT EPFO NUMBER REVEALS?

The Employees’ Provident Fund Organisation (EPFO) faces challenges due to frequent premature withdrawals by members, which drain retirement savings meant for post-retirement security. Data shows that nearly half of members withdraw funds shortly after unemployment, often rejoining later, causing breaks that reduce pension benefits. Most EPFO members earn low wages, limiting their contribution capacity. To address this, the government has introduced stricter withdrawal norms, minimum balance requirements, and streamlined withdrawal categories. Improving financial literacy, expanding coverage, and encouraging longer membership are key steps to strengthen India’s social security system.