EPFO Rule Change: Before Diwali, there’s some good news for EPFO members. The 238th CBT meeting, held in New Delhi, made a significant decision. Members will now be able to withdraw the entire balance from their PF account after maintaining a minimum balance of 25% of the total amount.
The Employees’ Provident Fund Organisation (EPFO) has simplified the rules for withdrawals from PF accounts, providing significant relief to its members. Under this new decision, issued for over 7 crore employees, members will now be able to withdraw the entire balance in their accounts except the minimum balance set. The Central Board of Trustees (CBT) has approved this new withdrawal limit. Furthermore, the board has approved several other important changes to further streamline the PF withdrawal process.
75% withdrawal possible from PF deposits
The meeting was chaired by Union Minister of Labour and Employment Mansukh Mandaviya. Union Minister of State for Labour and Employment Shobha Karandlaje, Labour Ministry Secretary Vandana Gurnani, and EPFO Commissioner Ramesh Krishnamurthy also attended. The most important decision taken at this CBT meeting is that EPFO members will now be allowed to withdraw the entire balance from their PF account, including employee and employer contributions, except for the minimum balance. Note that the minimum balance has been set at 25% of the total deposit, allowing members to withdraw up to 75%.
Earlier, facilities were available in these cases
Previously, under this rule, the full withdrawal of a PF account was available only in the event of unemployment or retirement. Members could withdraw 75% of their account balance within one month of becoming unemployed, while they had to wait two more months to withdraw the remaining 25%. However, in the event of retirement, members were allowed to withdraw the entire amount in one go.
Know which decision is beneficial
Regarding this important decision taken at the CBT meeting, the Ministry of Labor issued a statement stating that all EPFO members have now received significant relief. Under the new rule, members will be able to maintain a minimum balance of only 25% of their PF account, and easily withdraw the remaining 75%. This will allow them to continue receiving the 8.25% annual interest provided by the EPFO. Furthermore, maintaining a minimum balance will also protect their retirement funds.
This change also happened in EPFO
According to other decisions taken in this important meeting held in New Delhi, now members will be able to withdraw money from their PF account up to 10 times for education-related expenses, while in cases of necessity like marriage, withdrawal will be allowed up to 5 times. Earlier, this limit was limited to only 3 partial withdrawals, which has now been increased to provide relief. EPFO has also made the service tenure conditions for partial withdrawal different for all members and it has been fixed at 12 months. This change will prove to be very beneficial especially for new employees.
Claims will be settled
While previously, special circumstances like natural disasters or pandemics required a justification for withdrawing PF funds, this process has now been simplified. Members will be able to withdraw without providing any reason. According to the ministry, the requirement to submit documents has also been eliminated. This will allow all partial withdrawal claims to be processed fully automatically, providing faster access to employees.