PF Rules- Big news for PF account holders. There may be a big change in the rules for withdrawing money from the Employees’ Provident Fund (EPF) account of salaried employees. Now you will not have to wait till you leave your job or retire. The central government is considering relaxing the stringent rules for withdrawing money from retirement funds. According to reports, this may allow subscribers to withdraw the entire amount or a part of it once every 10 years.
Currently, you can withdraw the entire amount of PF only after retirement. Apart from this, money can usually be withdrawn at the age of 58 or if you remain unemployed for more than two months.
What changes are going to happen in PF?
According to reports, if these changes are implemented, members will be able to withdraw their entire amount even at the age of 30. This will allow members to choose how to use their EPF savings. The government may allow withdrawal of only 60 percent of the accumulated fund every 10 years, not the entire amount. This is being considered.
EPFO has over 7.4 crore members and the fund is worth about Rs 25 lakh crore. Currently, partial withdrawal is restricted to specific needs such as housing, medical emergency, education or marriage.
Rule to withdraw up to 90 percent of the deposited amount
From this month, EPF members can withdraw up to 90 per cent of their deposits to buy land or build a house. Earlier, only those whose savings had grown for five consecutive years were eligible to withdraw 90 per cent of the amount for housing needs, but now this limit has been reduced to three years. The EPFO has also increased the limit for advance claims from Rs 1 lakh to Rs 5 lakh, which do not require additional approval from the retirement fund. A June 24 release said this would help members “access funds faster in times of urgent need.”