EPFO: Big relief for EPFO members. The Employees’ Provident Fund Organization (EPFO) made several major decisions at its Central Board of Trustees (CBT) meeting on Monday, October 13. Chaired by Union Labor Minister Mansukh Mandaviya, the meeting approved several key changes aimed at providing relief to working individuals. Withdrawing money from an EPF account has now become easier than ever.
Now you will get 100% withdrawal facility
The EPFO has eliminated 13 complex rules and now has three categories for withdrawals from your PF account: essential needs (such as illness, education, marriage), housing needs (house-related expenses), and special circumstances. Members can now withdraw the entire amount deposited in their EPF account, including both the employee and employer contributions. Previously, only three withdrawals were allowed for education and marriage. However, now 10 withdrawals can be made for education and five for marriage. Furthermore, the minimum service period has been reduced to 12 months.
Automatic settlement process
No documentation will now be required. EPFO is fully automating the withdrawal process to expedite claim settlement. The final settlement deadline has been extended from two months to 12 months, and the pension withdrawal period has been extended from two to 36 months. This will allow members to withdraw funds easily when needed.
Previously, withdrawals required a reason for circumstances such as a natural disaster, pandemic, or unemployment. The EPFO has now removed this requirement. This means that under special circumstances, members can now withdraw funds without providing a reason.
25% minimum balance required in the account
The EPFO has mandated that a member’s account should always maintain a minimum balance of 25%. This will allow them to continue receiving the benefit of an 8.25% interest rate and compound interest, creating a substantial fund for retirement. The EPFO, in collaboration with the India Post Payments Bank (IPPB), has launched a new facility that will allow EPS 95 pensioners to submit digital life certificates from the comfort of their homes. This service will be completely free and EPFO will bear the cost. This will provide significant relief, especially to pensioners in rural areas.
Relief in fines through ‘Vishwas Yojana’
The EPFO has launched the “Vishwas Scheme” to reduce the hefty penalties levied for late PF deposits. The penalty will now be 1% per month for delays up to two months, 0.25% for delays up to two months, and 0.50% for delays up to four months. The scheme will last for six months and can be extended if needed.
The EPFO will now operate on a digital framework called “EPFO 3.0.” This will include features such as cloud technology, a mobile app, and automatic claim settlement. This will provide faster and transparent services to its approximately 300 million members.