Top News

New Delhi. The clarification issued by the Employees Provident Fund Organization (EPFO) on Wednesday has brought big relief to those employees who were preparing to leave their jobs and start their own business. Earlier it was being claimed that the entire amount could be withdrawn only after 12 months of leaving the job.

Major changes in rules
It is noteworthy that EPFO ​​has recently made major changes in the rules for PF withdrawal. Especially in case of leaving the job or being removed, the employee will be able to withdraw the amount from the PF account after 12 months. Similarly, withdrawal from pension account (EPS) will be possible after 36 months. Earlier this deadline for both the funds was two months. After this decision, there was confusion and confusion among the employees. The opposition had also opposed it.

Now explaining this rule in detail, EPFO ​​said that any employee can withdraw 75 percent of the amount immediately after leaving the job and the entire amount can be withdrawn after remaining unemployed for one year. EPFO said that under the new rules, the withdrawal limit for education or unemployment has also been made flexible and in any special situation, the entire amount eligible for withdrawal can be withdrawn twice in a year without any questions or answers.

Important questions and answers to this matter
1. What were the earlier rules for PF withdrawal after leaving the job?
Till now, if an EPFO ​​member remains unemployed for two months for any reason, he could withdraw the entire amount from his PF and Pension (EPS) account. But now EPFO ​​has extended this period.

2. What are the new rules now?
Now 75 percent of the amount can be withdrawn from the PF account immediately after leaving the job. The remaining amount will be allowed to be withdrawn after one year.

3. Why did EPFO ​​have to change the rules?
According to the organization, if someone withdrew the entire amount after two months of leaving his job, his service period would be broken. 10 years of continuous service is mandatory for pension. Due to repeated withdrawal of money, the mandatory service of 10 years could not be completed and the employee was deprived of pension benefits.

4. How will the members benefit from the changed rules?
The new rules will stop the tendency to withdraw money early from PF and pension funds. By extending the withdrawal period, fewer people will close their PF account completely, so that they will remain linked under the same UAN account (Universal Account Number). With this, if the unemployed member gets employment again for two months, then he will remain connected to the EPFO ​​schemes without any interruption. With this, his service period will continue to be counted and he will remain eligible to receive pension.

5. How much amount can other members withdraw from the PF account?
25% of the member’s PF corpus will be reserved as retirement fund. The member can withdraw 100% of his eligible balance anytime. For this, it is necessary to complete 12 months of service.

6. What provisions have been made for partial withdrawal?
Employees will now be able to withdraw money from the provident fund at an interval of one year for marriage, house etc. Earlier this limit was 5-7 years. In special circumstances, the amount can be easily withdrawn without any documents.