AIMIM chief Asaduddin Owaisi has sharply criticized the central government over the Employees’ Provident Fund Organisation (EPFO)’s revised withdrawal norms, calling it a “savings festival amidst unemployment.” His remarks came on October 16, 2025, after EPFO clarified that 75% of provident fund savings can be withdrawn immediately after job loss, while the remaining 25% will be accessible only after one year of continued unemployment. Owaisi accused the government of “mocking the working class” and claimed that earlier, employees could withdraw their full PF within 1–2 months of losing their jobs.
The EPFO’s updated rules are part of the broader EPFO 3.0 reform package, aimed at streamlining withdrawal categories and improving pension sustainability. However, critics argue that the new framework imposes unnecessary delays and burdens on workers already facing economic hardship.
🧠 Key Highlights of EPFO’s Revised Withdrawal Norms and Owaisi’s Criticism
| Element | Details |
|---|---|
| Speaker | Asaduddin Owaisi, AIMIM President |
| Date | October 16, 2025 |
| Platform | Social media and press statement |
| EPFO Rule Change | 75% PF withdrawal allowed immediately after job loss |
| Remaining 25% | Accessible after 12 months of unemployment |
| Owaisi’s Remark | “Savings festival amidst unemployment” |
Owaisi also questioned the government’s commitment to labor rights, stating that “workers are being punished for losing jobs they didn’t choose to lose.”
📊 Timeline of EPFO Withdrawal Policy Evolution
| Year | Policy Milestone |
|---|---|
| 2018 | Full PF withdrawal allowed after 2 months of job loss |
| 2020 | COVID-era relaxation: 75% withdrawal permitted |
| 2023 | EPFO begins consultation on pension reforms |
| October 2025 | EPFO 3.0 rules implemented, 75% withdrawal formalized |
The EPFO clarified that the new rules are designed to balance liquidity needs with long-term pension protection.
🗣️ Reactions from Political Leaders, Workers, and Economists
- Congress Spokesperson: “This is anti-worker and anti-poor.”
- Trade Unions: “We demand full withdrawal rights and rollback of EPFO 3.0.”
- Labor Economists: “The move may help pension sustainability but hurts short-term survival.”
| Stakeholder Group | Reaction Summary |
|---|---|
| Workers | Expressing frustration over delayed access |
| Unions | Planning protests and legal challenges |
| Economists | Divided over liquidity vs. pension balance |
| Government Officials | Defending reforms as necessary and prudent |
The EPFO has also introduced digital claim tracking, auto-verification, and AI-based fraud detection as part of its modernization efforts.
🧾 EPFO 3.0 Withdrawal Framework – Key Features
| Feature | Description | Impact on Workers |
|---|---|---|
| 75% Immediate Withdrawal | Allowed post job loss | Partial relief, limited liquidity |
| 25% Deferred Withdrawal | Accessible after 12 months | Delayed access to savings |
| Auto-Verification | Faster processing of claims | Reduced paperwork |
| Digital Claim Tracking | Real-time status updates | Transparency improvement |
| Fraud Detection AI | Prevents misuse and impersonation | Security enhancement |
EPFO officials claim the reforms will reduce claim processing time by 40% and improve fund integrity.
🧭 What to Watch in EPFO Reform Debate
- Legal Challenges: Trade unions may file PILs against withdrawal limits
- Political Fallout: Opposition likely to use issue in 2026 campaign
- Worker Sentiment: Rising demand for full access to PF savings
- EPFO 4.0 Roadmap: Pension portability and universal coverage under review
Owaisi concluded, “This is not a savings festival. It’s a survival crisis. The government must stop celebrating austerity and start protecting workers.”
Disclaimer
This news content is based on verified policy announcements, political statements, and media reports as of October 17, 2025. It is intended for editorial use and public awareness. The information does not constitute financial advice, legal interpretation, or political endorsement and adheres to ethical journalism standards.
