There is good news for salaried employees. The Government of India has made changes to the rules of the Employees’ Provident Fund (EPF). Now, it will be easier for first-time home buyers to withdraw money from their PF account.
Under Para 68-PD of the EPF scheme, EPFO members can now withdraw up to 90 percent of the amount from their PF account. However, this money can only be taken out for buying a new house, for construction, or for paying home loan installments.
What Are the New Changes?
The time limit to withdraw money from the PF account has been reduced. Earlier, employees could withdraw money only after 5 years of opening a PF account. Now, they can withdraw after just 3 years.
Earlier, people could withdraw PF for only 36 months’ worth of salary to buy a house. But now, they can withdraw up to 90 percent of their PF amount.
Big Announcements by EPFO
1. Money Withdrawal Through UPI and ATM
From June 2025, in case of an emergency, people will be able to withdraw up to ₹1 lakh from their PF account using UPI or ATM.
2. Auto Settlement Limit Increased
Earlier, the auto settlement limit for PF was ₹1 lakh. Now it has been increased to ₹5 lakh.
3. Fewer Verification Rules
Earlier, people had to complete 27 verification steps to withdraw PF money. Now, it has been reduced to just 18 steps, making the process faster.
4. Easier PF Withdrawal for Important Needs
Now, withdrawing PF money for things like marriage, medical treatment, and education has become much easier. These changes will help employees in times of financial need.