PF Account Rules: A major relief has emerged for PF account holders, offering significant benefits. PF will no longer be limited to retirement, but will also provide financial support for employees when needed. India’s Minister of Labor and Employment, Mansukh Mandaviya, openly discussed the PF-related provisions.

He stated that the government’s focus on the Employees’ Provident Fund is to make it more simple, flexible, and useful in times of need. Important information was also provided regarding withdrawals from PF accounts. People can now withdraw up to 75% of their PF accounts. Let us provide the full details.

75% of PF amount can be withdrawn without giving any reason

The Employees’ Provident Fund Organization has provided significant relief to its millions of members. Under new rules, PF account holders will now be able to withdraw up to 75% of their funds without providing any reason. The only condition is that at least 25% of the funds must remain in the account. This decision was made at a meeting of the Central Board of Trustees.

The meeting was chaired by Union Labor Minister Mansukh Mandaviya. Senior officials from the Labor Ministry and the EPFO ​​were also present. The new rules allow withdrawals of up to 75 percent, combining both the employee and employer’s share. This will provide working individuals with easy access to their own funds in times of need. Furthermore, essential retirement savings will also be safeguarded.

What was the rule earlier?

Previously, the rules for withdrawing funds from a PF account were quite restrictive. Full withdrawals were only permitted in two situations: retirement or unemployment. If an employee became unemployed, they could withdraw 75 percent of the funds after one month, while the remaining 25 percent had to wait two months.

Previously, the entire PF amount was disbursed in one lump sum upon retirement. The new rule has simplified this process considerably. The Labor Ministry says this will provide relief to all EPFO ​​members. The remaining 25 percent of the balance in the account will continue to earn 8.25 percent annual interest, ensuring the safety of retirement savings.