EPFO Changes Rules for Withdrawing Money: Jalandhar Regional Office Announces 3 Categories; Money Can Be Withdrawn 5 Times for Marriage.
A significant relief for its members has been announced by the Employees’ Provident Fund Organisation (EPFO). According to Pankaj Kumar, Commissioner of the Jalandhar Regional Office, there are now only three simple categories for withdrawing PF money instead of the old thirteen complex regulations.
According to Jalandhar Regional Office Commissioner Pankaj Kumar, the new method allows for the withdrawal of funds for three types of necessary duties. The funds may be taken out in accordance with specific needs, such as developing a home, performing repairs, and other unique situations. Payment of medical bills, school tuition, or marriage are examples of necessary criteria.
A significant relief for its members has been announced by the Employees’ Provident Fund Organisation (EPFO). According to Pankaj Kumar, Commissioner of the Jalandhar Regional Office, there are now only three simple categories for withdrawing PF money instead of the old thirteen complex regulations.
According to Jalandhar Regional Office Commissioner Pankaj Kumar, the new method allows for the withdrawal of funds for three types of necessary duties. The following are the new categories:
- Essential Needs: Pays for things like marriage, education, and medical bills.
- Housing needs: For purchasing, constructing, or maintaining a home.
- unique situations.
- Important Modifications to the New Rules: The maximum withdrawal frequency for marriage has been raised to five times, while the maximum withdrawal frequency for schooling has been liberalized to ten times. There used to be a cap of three partial withdrawals for marriage and schooling combined.
- Minimum Service duration: All partial withdrawals now require a minimum service duration of only 12 months, or one year.
- 100% Withdrawal: Members may now take out up to 100% of their qualified PF balance, which includes contributions from both employers and employees.
- Minimum Balance: In order to guarantee a retirement corpus, a new rule mandates that members always keep a minimum balance of 25% of their contributions in their accounts.
Workers are able to withdraw all of their funds. Workers who make contributions to the PF (Provident Fund) are able to withdraw from their account up to 100% of the total amount, which includes contributions from both the company and the employee. But there needs to be at least one rupee left in the account. This leftover sum will continue to be subject to an interest rate of 8.25%. After quitting employment, there is now a one-year extension on the final payment period. On the other hand, withdrawals from the pension are only permitted after three years. Additionally, EPS-95 pensioners will be able to obtain their digital life certificate (Jeevan Pramaan Patra) at home for free thanks to EPFO’s partnership with India Post Payments Bank (IPPB). Additionally, EPFO will cover the rs.50 price for this.
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