New Delhi: The EPFO continues to offer various benefits to PF employees, which are having a significant impact. Employees will now be able to withdraw their funds hassle-free. Except for the minimum amount, some changes have been made to the rules. 75% of the funds can be withdrawn immediately after job loss.
This means that to withdraw the remaining 25%, you will have to remain unemployed for 12 months. Previously, some rules were complex, but now they have been simplified. These have been divided into three categories: essential needs, housing needs, and special circumstances. This has simplified the withdrawal process. Clearly, it will not be easy to withdraw the entire amount immediately after leaving the job.
The full amount will not be available immediately upon leaving the job
Employees will not be able to withdraw the entire amount immediately upon leaving the job. Employees will now have to wait 12 months, or one year, to withdraw the entire Provident Fund amount. Only 75% of the amount can be withdrawn immediately. Another myth is that 25% of the balance will be locked in the account. However, this amount is earmarked for pension purposes. There will be no restrictions on withdrawals.
If PF employees make frequent withdrawals for any reason, their pension funds will be deducted. The new rules will completely alleviate this concern. Previously, government regulations limited withdrawals to marriage, education, and health expenses, but now these rules have become more flexible.
This means that under special circumstances, withdrawals are allowed twice a year without documentation. The withdrawal period for unemployment has been extended from two months to 12 months.
Monthly Interest
The government opens its coffers annually for PF employees. The central government annually announces interest on PF deposits. For the financial year 2024-2025, the central government has paid 8.25% interest. Checking the interest amount will no longer be a hassle. This means you can check the amount through a missed call or SMS.