PF Withdrawal New Rules: Many times, in times of emergency, people are unable to access the money in their PF account even though it is present. Even if they withdraw money, they have to provide a valid reason. But now the government has hinted at a major change in EPFO rules.
According to a report, according to the new proposal, PF withdrawals may be allowed up to six times a year. Most importantly, there will be no need to provide a reason for this. However, there is a condition. Let’s read the full report.
What changes will the new proposal make?
According to the report, the proposed changes include allowing up to six PF withdrawals per year, without reason. This will provide immediate relief to employees in emergencies, make cash flow management easier, and provide greater control over their finances. However, one condition is that individuals cannot withdraw more than 50% of their PF balance . This limit is set to ensure that the PF balance is not completely depleted and funds are saved for retirement.
What were the rules for withdrawing PF till now?
Till now, there were some mandatory rules for withdrawing PF. One could withdraw 50% of the PF balance for marriage, but for this, a minimum of 7 years of membership was required. There was also an option to withdraw 50% of the PF for studies, but the account should have completed 7 years.
One could withdraw money from PF balance and EPS for buying or building a house , but for this, a minimum of 5 years of employment was required. In case of medical emergency, one could withdraw money as per need, there was no limit on this. In case of unemployment, there was an option to withdraw 75% of the PF, but it was necessary to be unemployed for at least one month.
