The central government may allow Provident Fund (PF) account holders to withdraw PF money from ATMs before Diwali. A big meeting will be held on October 10-11, led by Labor and Employment Minister Mansukh Mandaviya, to discuss this proposal.
The government wants to give more facilities to 8 crore EPFO subscribers so they can use the money before Diwali. In this meeting, the EPFO board may also discuss increasing the minimum pension from ₹1,000 per month to ₹1,500-2,500, which has been a long-standing demand of trade unions.
EPFO is also going to launch a new digital service called EPFO 3.0. This will make withdrawing money easier and faster, along with updating information and making claims. Employees will be able to withdraw money from ATMs by activating their UAN and linking their Aadhaar to the account.
How to withdraw PF money from ATM and UPI
Under the new process, EPFO will issue a special ATM card to its subscribers. This card will be linked to their PF account. Using this card, subscribers can withdraw PF money directly from ATMs.
To withdraw money via UPI, you need to link your PF account to UPI. After this, subscribers can transfer PF money to their bank account easily.
PF withdrawal rules and income tax
75% withdrawal after job loss: If a member loses their job, they can withdraw 75% of their PF money after 1 month. This helps meet their needs during unemployment. The remaining 25% can be withdrawn after 2 months of losing the job.
Income tax rules: If an employee has completed 5 years of service in one or more companies and withdraws PF, there is no income tax on it. The 5 years can be combined from multiple companies; it is not necessary to complete 5 years in a single company.