EPFO Update – Various facilities have been offered to PF employees, and their impact is evident. Now, it will take longer to withdraw the entire amount from a PF account after losing or quitting a job. The Employees’ Provident Fund Organisation (EPFO) has announced an extension of the time limit, from the current two months to 12 months or one year.
In the case of pensions, this period has been extended to 36 months. Many times, when a private employee loses his or her job, the PF balance is under scrutiny. However, now it will take up to a year for the final settlement to be approved. Previously, the final settlement of a PF account took two months. EPFO ​​has taken this important decision. PF employees can understand it in a few points.
Understand the important points in the first point
Withdrawing 75% of the amount from a PF account has become easier. Some important decisions were taken at the Central Board of Trustees meeting on Monday. The 238th meeting, chaired by Union Labour and Employment Minister Dr Mansukh Mandaviya, approved several major decisions. The process of withdrawing funds from PF accounts has been simplified for PF employees.
This means that withdrawals can be made easily, except for the minimum amount. A 25% deposit will be mandatory. PF employees can easily withdraw the remaining 75%. This limit was previously set. Withdrawals under this limit were only permitted in cases of unemployment or retirement.
What’s important in the second point?
The CBT has allowed employed individuals to withdraw the entire amount. Furthermore, 25% will remain as the minimum balance in their PF accounts. This deposit will continue to earn annual interest, including the current 8.25% interest. Additionally, employees will also receive pension fund benefits if needed.
How much interest did the government provide?
The Central Government provides interest to PF employees every year. The central government has provided 8.25% interest to employees for the financial years 2024 and 2025. This amount has been transferred to their accounts. PF employees can easily check this amount via missed call or SMS.
