PF Withdrawal Rules: Good news for Employees' Provident Fund (EPF) account holders. Now, PF will not be limited to retirement only, but employees will be able to withdraw up to 75% of their contribution when needed. This announcement was made by India's Minister of Labour and Employment, Mansukh Mandaviya, while speaking to a private media channel. The minister clarified that the government's goal is to make PF more accessible, flexible, and helpful for employees in times of need.

Withdrawal facility without any reason

Under the new rules, account holders can now withdraw money from their PF account without citing any reason. The only condition is that at least 25% of the amount must remain in the account. This means that employees can access their money immediately, whether for personal or unforeseen needs.

Approved by the Central Board

This change was approved at the meeting of the Central Board of Trustees. The meeting was attended by the Union Labour Minister, senior officials of the Ministry of Labour, and top officials of EPFO. The new rule allows withdrawal of up to 75% of the combined contributions of both the employee and the employer.

What were the rules before?

Earlier, the rules for withdrawing money from PF were quite strict. Withdrawing the full amount was possible only in two circumstances: retirement and unemployment. In case of unemployment, the employee had to wait one month to withdraw 75% of the amount and two months to withdraw the remaining 25%. The full PF amount could only be availed upon retirement. This made accessing the account quickly quite difficult.

What will be the benefit of the new system?

Employees will get immediate access to their money when needed.
Retirement savings will remain secure as at least 25% of the amount will remain in the account. The remaining 25% of the account balance will earn an annual interest of 8.25%.
PF can become a reliable support during times of financial difficulty.

How to withdraw PF money?

Log in to the EPFO portal or UMANG app.
Select the Partial Withdrawal or Advance option.
Enter the required amount and reason. Now, you can withdraw up to 75% of the amount without giving a reason, as per the rules.
The amount will be transferred directly to your bank account.

Government's objective

The Ministry of Labour and Employment says that this change will ensure both relief and convenience for millions of EPFO members. The government wants PF to be more than just a retirement savings fund; it should also serve as a support during unforeseen financial needs.

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