New Delhi, Oct. 15 -- The Union labour ministry's latest reforms to facilitate urgent cash withdrawals by employees from their provident-fund accounts have simultaneously imposed tighter procedures and longer wait times in certain cases, according to details ratified by a statutory body on Monday. Experts appeared divided on the changes that merged 13 provisions, which allow formal-sector workers to make "partial withdrawals". Although withdrawal rules have been eased and standardised, longer lock-in periods have been introduced for final settlements. Longer wait times may exacerbate financial emergencies under certain situations, according to some analysts. The reforms also introduced a new mandatory minimum balance of 25% of total available funds , which must be maintained until a person remains in employment. Some members of the statutory board that endorsed the changes and who represent trade unions, said a minimum balance is "a critical safety buffer" both for employees and the state-run Employees' Provident Fund Organisation (EPFO), without which the savings scheme itself could collapse. "This is also the government's view," an official said, asking not to be named. All firms with 20 or more employees are required by law to register with the EPFO, which manages the Rs.28-lakh crore corpus. An employer and worker each copay 12% of a person's basic salary towards the fund, which is re-invested to offer high returns (8.25% last year). CHECK. "The minimum balance is critical, which the employee is meant to have as a last resort. The whole edifice of the EPFO can collapse if employees are permitted to empty out all savings at will," said TN Karumalaiyan, the national secretary of the Centre for Indian Trade Unions, who sits on the EPFO board, justifying the new mandatory minimum balance. Still, the 25% minimum balance stretches the lock-in period to an employees' entire career and the new rules on full withdrawals mean workers' money is stuck for a much longer period. Workers can now withdraw cash during service under three broad categories: essential needs covering illness, education and marriage; funds for housing; and special circumstances. Withdrawal limits have been liberalised (up to 75% of the corpus) as compared to 50% of employee share (with interest) of the corpus in the past, as has the mandatory service requirement. Previously, only those working for five years could withdraw funds for housing, and only those working for seven, could do so for funding a marriage; now, anyone who has worked for a year can do so. The number of withdrawals allowed has also been increased. However, employees will now be able to apply for full settlement of their accumulated money only after 12 months of exiting employment, and pension after 36 months, compared to a two-month window earlier, stretching post-retirement (or post-employment) wait times. Karumalaiyan said he supported the reforms "in spirit" but slammed the ministry for allegedly introducing the reforms agenda "suddenly" on Monday and not giving any time for wider consultations....