EPFO: For employed people, their Provident Fund (PF) is a lifeline, especially when they suddenly lose their job. During these difficult times of unemployment, everyone focuses on their savings. Keeping this in mind, the Employees’ Provident Fund Organization (EPFO) has made significant changes to its rules. Now, if an employee loses their job, they won’t have to wait long to meet their needs. These new rules, announced by Labor Minister Mansukh Mandaviya, are part of the “EPFO 3.0” initiative, which aims to make digital claim settlement faster and easier.
Previously, withdrawing PF funds after losing a job involved a complex set of rules, but that’s no longer the case. According to the new rules, you can withdraw up to 75% of your PF balance immediately after losing your job. This includes both employee and employer contributions and the interest earned on them. This change is a major relief for those who need immediate funds to meet household expenses.
However, there’s an important point to note: You won’t be able to withdraw all of your money at once. You’ll have to wait until you’ve completed 12 months of unemployment to withdraw the remaining 25%. The government argues that this rule is designed to ensure some of your savings are protected for retirement and to avoid depleting the entire fund all at once. However, full withdrawal eligibility technically occurs only after at least two months of unemployment.
Now you will have to wait a long time for your pension money
Apart from this, the withdrawal categories have now been simplified into just three parts: essential needs (such as illness or children’s education), housing needs and special circumstances.
Make a claim like this sitting at home
The entire PF withdrawal process is now online. If your Universal Account Number (UAN) is active and your KYC is complete, the money can be credited to your account within 3 to 5 working days.
To file a claim, first visit the EPFO’s unified portal. Log in with your UAN and password and select the “Claim (Form-31)” option under the “Online Services” tab. Verify by entering the last four digits of your bank account. Select “Unemployment” as the claim reason and enter the amount you need. You don’t need an official signature; a self-declaration is sufficient. Finally, submit the form using your Aadhaar OTP. If your service is less than five years, be sure to submit Form 15G/15H to avoid TDS.
While PF withdrawals have been eased, pension rules have been slightly tightened to ensure security in old age. To withdraw deposits under the Employees’ Pension Scheme (EPS), you now have to wait for a period of unemployment of 36 months (3 years). Previously, this period was only 2 months. Experts believe that this move by the EPFO is aimed at providing long-term social security to members, ensuring future pension benefits.