New Delhi, October 13 (IANS). In a big news ahead of Diwali, the Employees’ Provident Fund Organization (EPFO) in its meeting held on Monday decided that 100 per cent of the ‘eligible amount’ in the PF account, which includes employee and employer’s share, can be withdrawn.
This decision was taken in the 238th meeting of the Central Board of Trustees (CBT) held in the national capital. This move will help more than seven crore shareholders and allow them to withdraw up to 100 percent from EPF.
Earlier, full withdrawal could be made only in case of unemployment or retirement. A member was allowed to withdraw 75 per cent of the PF balance after one month of unemployment and the remaining 25 per cent after two months. However, withdrawal of the entire amount was allowed without any limit on retirement.
The CBT, headed by Labor Minister Mansukh Mandaviya, took several important decisions during its meeting.
In case of partial withdrawal for land purchase, purchase or construction of a new house or EMI payment, EPF members were allowed to withdraw up to 90 per cent of the amount deposited in their EPF account.
It is noteworthy that in order to ease the lives of EPF members, CBT has decided to simplify the partial withdrawal provisions of the EPF scheme. It seeks to consolidate 13 complex provisions into a single, streamlined rule, categorized into three types: essential needs (illness, education, marriage), residence requirements and special circumstances.
EPFO has also decided to liberalize the withdrawal limit.
Withdrawals are allowed up to 10 times for education and 5 times for marriage (total from the existing limit of 3 partial withdrawals for marriage and education).
Also, the minimum service period requirement for all partial withdrawals has been uniformly reduced to only 12 months.
–IANS
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