EPFO Rule: If you are employed and regularly contribute to PF, then there is good news for you. The central government is bringing a new proposal through EPFO, which may allow you to withdraw a large amount from your PF account every 10 years. Till now, full PF withdrawal was possible only on retirement or job loss, but this new rule can change it.

According to a report, the government is considering relaxing the existing strict rules for PF withdrawal. Two senior EPFO officials have been quoted as saying that the government is planning to bring a mechanism in which PF members can withdraw a part or full amount of their entire fund every 10 years.

An EPFO official said that every 10 years, a good amount gets deposited in the member's account. In such a situation, they should be given the freedom to decide what they want to do with that amount, whether it is an investment or any personal expense.

How has the system been now?

You can withdraw the entire amount from PF (Provident Fund) only when you retire (at the age of 58) or two months after leaving the job. However, in some special cases like buying a house, medical emergency, children's education, or marriage, you get the facility of partial withdrawal.

However, recently, EPFO has given some relaxation in its rules (EPFO New Rules). Now, PF members can withdraw 90 percent of their funds to buy or build a house after contributing continuously for three years. Earlier, this facility was available only to those who contributed for five years.

What are the conditions?

The government is considering allowing withdrawal of only up to 60 percent instead of withdrawing the entire amount from the PF every 10 years. This will give financial flexibility to the members, while the main objective of PF i.e., financial security after retirement, will also remain.

What do experts say?

Some experts have appreciated this proposal, but have also warned. He says that by getting permission to withdraw money repeatedly, people may stop saving for the future. This can lead to a financial crisis at the time of retirement.

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