Employees Provident Fund Organization (EPFO) can make a big change in the rules for withdrawing funds from accounts. A report claimed that the retirement fund body has come up with the EPFO members to allow the members to withdraw their entire amount or some part once every 10 years.
If this proposal is passed, it will provide relief to more than 7 crore active EPFO members working in the organized private sector. Moneycontrol report said that the central government is considering making the rules of withdrawing funds easier after completing 10 years of service.
This is being done keeping in mind the people who want to retire quickly. In such a situation, instead of waiting for 58 years, they can claim the entire PF amount as soon as they retire.
Why is this change important? Till now, the entire amount could be withdrawn from the EPF only when an employee retired at the age of 58 or was unemployed for two months after leaving the job. But there are many people who want to change their career at the age of 35 to 40 years or for some reason, they are unable to do regular jobs. In such a situation, this change will prove to be very helpful for them.
EPFO made these changes
Immediate withdrawal of up to Rs 1 lakh from EPF account through UPI or ATM. This will make it easier to withdraw money in emergency. Earlier, claims up to Rs 1 lakh were settled automatically, but now this limit has been increased to Rs 5 lakh. This will not require verification. To make the process easier, EPFO has reduced the number of documents required for verification of claims from 27 to 18. Now this process is completed in 3-4 days. Now on completion of 3 years of service, 90% amount can be withdrawn from PF account and that money is to be used for the down payment or EMI of the house.
It is worth noting that from time to time, the government keeps changing the withdrawal from the EPF account, so that the process can be easier for private sector employees. These changes have also been made so that employees can use their money without any hassle in emergency. Let us tell you that 12 percent contribution to PF account is given by the employee and 12 percent contribution is given by the employer.
