EPFO NEWS – Gift to PF employees before Diwali, know update

EPFO New Rule: A decision has been taken to simplify the rules for PF employees once again. Changes have been made to the rules for partial withdrawals from PF accounts. PF account holders can now withdraw 100% of their deposits without any hassle. This decision was taken at a meeting of the Central Board of Trustees.

The meeting was chaired by Mansukh Mandaviya. This move will greatly facilitate members in meeting their immediate financial needs. Furthermore, they will not have to compromise on their retirement savings. This decision of the CBT will prove to be a booster dose before Diwali.

Employees Can Withdraw Provident Funds Along With Employers

According to the Ministry of Employment and Labour, EPFO ​​members are in for a treat. According to the ministry, EPFO ​​subscribers can now withdraw their entire funds, including the employee and the company’s share. This process was previously somewhat different, which caused inconvenience to employees. These have now been divided into three categories.

This includes certain needs, such as illness, education, and marriage. It has been decided to reduce the withdrawal limit for education and marriage from 10 to 5 times. Furthermore, there will no longer be a need to provide a reason for withdrawals under special circumstances. This means that the likelihood of claim rejection will be significantly reduced.

Minimum Service Period Also Reduced

The decision has been made to reduce the minimum service period for all partial withdrawals to 12 months. This is seen as a major change that allows members to access their funds even with shorter service periods. The EPFO ​​has also ensured that members must always maintain a minimum balance of 25% of their contribution amount.

This Scheme is Also Approved

The Central Board of Trustees meeting has given the green light to a promising scheme. The CBT has won everyone’s hearts by approving the Vishwas Scheme. The main objective of the Vishwas Scheme is to reduce the penalty for delay in provident fund contribution and to settle pending cases.