Government has taken a major step about PF Money Withdrawal. Now, with this new rule, employees can easily withdraw a big ammount of money from his PF account.
Know about the new rule
Under the new rules, the previously 13 complex withdrawal rules have been reduced to just three simple categories. This has made the withdrawal process hassle-free and fast. This change will benefit over 70 million PF account holders. Furthermore, withdrawals can be made without providing a reason in cases of unemployment, natural disasters, or other emergencies. The government has made a major announcement for PF account holders. You can now withdraw up to 75% of your PF account balance. Withdrawals can be made under three main categories: essential needs, housing needs, and special circumstances.
Know the criterias also
Furthermore, the minimum service period has been reduced to just 12 months. This will also make it easier for new employees to withdraw funds quickly. The EPFO has made several significant changes to its withdrawal rules. The most significant change is that members can now withdraw up to 75% of their funds. To do this, they must maintain a 25% balance in their account. This amount will serve as a safety net for retirement and will continue to earn interest at the rate of 8.25%.
There are 3 categories
Now, three main categories have been created for withdrawing money from PF. This simplifies the process. The first category includes essential needs such as illness, education, and marriage. The second category includes housing needs such as buying, building a home, or repaying a loan. The third category includes special circumstances such as unemployment, natural disasters, or epidemics.
Under these categories, members can withdraw funds as needed. In special circumstances, withdrawals can be made without explanation. This will provide immediate relief to those in financial distress.
There’s no longer a need to visit the office to withdraw PF funds. You can apply online from the comfort of your home. To do this, visit the EPFO’s official website. Log in using your Universal Account Number (UAN). Then, go to ‘Online Services’ and select ‘Claim (Form-31, 19, 10C & 10D)’.
