Labor Minister Mansukh Mandaviya himself shared the information about this decision through a post on social media platform X and also issued a press release. He said that under the leadership of Prime Minister Narendra Modi, continuous work is being done to make life easier for EPF members and ease of doing business for employers.
Major decisions taken in the meeting:
Simple rules and partial withdrawals: By abolishing the old 13 difficult rules, partial withdrawals are now allowed in only three categories. This includes expenses related to illness, education, marriage, housing and special circumstances. Now members can withdraw the entire amount available in their PF account.
Withdrawals for marriage and education: Earlier only 3 withdrawals were allowed for education and marriage, but now withdrawals can be made 10 times for education and 5 times for marriage.
Change in minimum service period: The minimum service period has been reduced to 12 months. Earlier this period was different for different needs.
Ease in special circumstances: In circumstances like natural disaster, unemployment or epidemic, withdrawal facility will now be available without giving any reason.
Minimum Balance Limit: There will always be 25% of the amount in the members account as minimum balance. With this, they will continue to get the benefit of 8.25% interest and compound interest, which will create a good fund for retirement.
Auto Settlement System: There will be no need to submit documents under the new rules. Withdrawals will be completely automatic, which will speed up settlement of claims. The period for final settlement has been increased from 2 months to 12 months and the period for withdrawal of pension from 2 months to 36 months.
After this change, the direct benefit in the lives of employed people will be that it will be easier for them to get their kept funds on time and without any hassle. These decisions will bring special relief to families belonging to economically weaker sections, because in case of sudden need, it will now be possible to withdraw money with just a few clicks. With this, young employees will get financial assistance to complete big schemes like marriage, education and house.