The central government may soon change the rules for taking money from Employees’ Provident Fund Organization (EPFO) accounts. A report by Moneycontrol says EPFO has suggested that members can take all or part of their money once every 10 years. If this rule starts, it will help more than 70 million active EPFO members working in private jobs. The government is thinking of making the rules easy for withdrawals after a member finishes 10 years of service.
The report also says this plan is to help people who want to retire early, so they do not have to wait until the retirement age of 58.
Why a Change in EPF Withdrawal Rules is Needed
Till now, people could take full EPF money only after retiring at 58 years or staying jobless for two months after leaving work. But many people at the age of 35–40 want to change jobs or cannot keep a regular job.
Experts say this change is important because many members do not reach retirement age or cannot stay in formal jobs for so long. For them, this new rule can be very helpful.
Recent Changes in EPFO
- Instant withdrawal through UPI: Now, people can take up to ₹1 lakh instantly from PF using UPI or ATM. This helps in emergencies.
- Auto-settlement limit increased: Earlier it was ₹1 lakh, now it is ₹5 lakh. This removes the need for physical checks for small claims.
Who Will Benefit?
- People who finished 10 years of work but do not want to do regular jobs anymore.
- Young people who want to retire early.