EPFO 3.0: The Employees’ Provident Fund Organization (EPFO) has revised the rules for withdrawing funds from EPF accounts. The previous 13 separate withdrawal requirements have been replaced by just three. This will eliminate any confusion for subscribers. The withdrawal process will be completed faster, allowing for faster crediting of the withdrawal amount to savings bank accounts.
How much money can you withdraw now?
Experts say the new rules will benefit the EPFO ‘s 300 million members. The most significant change is that members can now withdraw up to 75% of their EPF account balance. The EPFO has stated that members will only need to maintain a 25% balance in their EPF accounts.
How much service period is required for withdrawal?
The service period for withdrawals has been reduced. Previously, different service periods were required for different withdrawal purposes. Now, the service period has been reduced to just 12 months. This means that if an employee has completed 12 months of employment, they can withdraw funds.
EPFO subscribers will benefit the most from the new withdrawal conditions. Now, along with Essential Needs and Housing Needs, a third condition, Special Circumstances, has been added. Under this third condition, subscribers can withdraw funds without providing a reason. They will not be required to submit any documents.
Can you withdraw more money than before?
Subscribers can now withdraw 10 times for education and 5 times for marriage. Previously, only three withdrawals were allowed. Experts say the EPFO may have made this rule change to accommodate the rising costs of education and marriage. This change will significantly benefit subscribers.
Now, subscribers can apply for PF settlement only 12 months after leaving their job. Pension withdrawals can be applied for after 36 months. Previously, PF settlement could be applied for after two months of leaving the job. Experts say that the rules for PF settlement have been tightened.
Will the employee face any problem in case of layoff?
Experts say that the change in PF settlement rules may be aimed at financial security. However, it could create difficulties for retrenched employees. They will have to wait more than 12 months for their money. Given the ongoing layoffs in other sectors, including the IT sector, this rule will only exacerbate the problems faced by employees.
