EPFO will change soon! Now it is not necessary to wait without taking out the entire PF amount

New Delhi

The Employees Provident Fund Organization (EPFO) can make a big change in the rules for extracting the amount from the accounts. A report claimed that the retirement fund body has submitted a proposal, which states that EPFO members should be allowed to withdraw their entire amount or some part of it 1 time every 10 years.

If this proposal passes, it will provide relief to more than 7 crore active EPFO members working in organized private sector. The report of Moneycontrol said that after completing 10 years of service, the central government is considering making the rules of withdrawing money from the members.

This is being considered keeping those people who want to retired soon. In such a situation, instead of waiting for 58 years, he can claim the entire PF amount as soon as he retires.

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Till now, the entire amount could be withdrawn from the EPF only when an employee retired at the age of 58 or remained unemployed even after two months of leaving the job. But there are many people who want to change the 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 be very helpful for them.

7.5 crore account holders will benefit

The new rules will benefit about 7.5 crore members associated with EPFO, who will be able to withdraw more funds on their needs. This change will help especially those who do not want to wait till the age of 58 and retire early. At the moment, you can remove your entire PF only if you retire at the age of 58 or remain unemployed for two months after leaving the job. At present, the member from PF account is allowed to withdraw money for medical, house buying, children’s education, marriage in the house and some other important tasks, but there are all the conditions in which withdrawal can be done only to the limit.

Retirement money will be reduced: If the employees take out a large rak from the PF in between, then it is obvious that when they retire, then the money will be less in their account.

Loss of interest: PF is a means of saving for a long time and getting good interest on it. Withdrawing money in the middle will give less benefit of compound interest. This means that your deposited money will not increase so fast.

Future worry: The financial security that comes from PF for retirement can weaken.

EPFO made these changes

The EPF account will get the facility to withdraw up to Rs 1 lakh immediately through UPI or ATM. This will make it easier to withdraw money in emergency.
Earlier, the claim of up to one lakh rupees was settled automatically, but now this limit has been increased to Rs 5 lakh. Verification will not be required for this.

To make the process easier, EPFO has reduced the number of documents required for claim verification from 27 to 18. With this, this process is now being completed in 3-4 days.

Now 90% of the amount can be withdrawn from the PF account, if 3 years of service has been completed and that money is to be used in the down payment or EMI of the house.

It is worth noting that the government keeps changing from time to time regarding withdrawal from EPF account, so that more simple processes are available for private sector employees. These changes have also been made so that employees can use their money without any hassle at the time of emergency. Explain that 12 percent contribution in PF account is given by employee and 12 percent contribution is given by the appointment.