New rules have been introduced for withdrawing money from the Employees’ Provident Fund Organization (EPFO). Now, you can withdraw your PF money faster and more easily. Many people are already checking this topic, and that’s why it is trending on Google search.
According to the new rules, if you leave your job, you can immediately withdraw 75% of your PF balance. What about the remaining 25%? If you don’t get a new job even after 12 months, you can withdraw that remaining 25% too.
New EPFO Rules
Minimum Balance Rule:
You must keep at least 25% of your PF money in your account while withdrawing. The aim of this rule is to help people earn interest and build a retirement fund. Since private jobs do not give a pension, saving money in PF is very important.
Easy Withdrawal Rules:
Earlier, there were 13 types of rules. Now, there are only 3 simple categories:
Essential expenses (medical, education, marriage)
Housing
Emergency
Now, the process to withdraw money is much easier and less confusing than before.
Waiting Time for Full Withdrawal:
If you want to take out your full EPS amount, you must wait for 36 months. Earlier, the waiting time was only 2 months. This rule helps people avoid withdrawing all their PF money too quickly.
Pension Eligibility:
If a government employee works for 10 years, they will get a pension at the age of 58.
Emergency Withdrawal:
You can withdraw some money from EPS in case of a housing or medical emergency.
Impact of the New Rules:
- More Flexibility: If you are not working, you can withdraw PF money faster. It helps with family needs or starting a small business.
- Better Security: Keeping a minimum balance and a longer waiting time helps people save more for the future.
- Easy Process: The new rules are simple and need fewer documents. Money can be withdrawn faster.
- Long-Term Safety: These rules help middle-class employees build long-term savings and financial security.
- In short, the new EPFO rules are good for employees. Now, withdrawing PF money is easier, faster, and safer.