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Now full money can be withdrawn from EPF account. Employee Provident Fund Organization (EPFO) announced this in the Central Board of Trustees (CBT) meeting held on Monday (October 13).
Many relief decisions were taken in the meeting chaired by Central Labor Minister Mansukh Mandaviya. With these decisions, it will now become easier than ever for employed people to withdraw money from their EPF.
Central Labor Minister Mansukh Mandaviya gave information by sharing the post on X.
Big decisions taken in EPFO meeting…
1. Now 100% withdrawal facility
EPFO has abolished the old 13 difficult rules and has now made rules for partial withdrawal in only three categories. Which includes essential needs (illness, education, marriage), housing needs (house related expenses) and special circumstances. Now members will be able to withdraw the entire amount in their PF account (including both employee and employer shares).
Earlier withdrawals were allowed only 3 times for education and marriage, but now withdrawals can be made 10 times for education and 5 times for marriage. Apart from this, the minimum service period has also been reduced to 12 months, which was earlier different for different needs.
28 Clearances without reason
Earlier, in special circumstances (such as natural disaster, unemployment, epidemic), reasons had to be given for withdrawal, due to which claims were often rejected. Now we have got rid of this hassle. Members will get the facility of withdrawal in special circumstances without assigning any reason.
3. 25% minimum balance required
EPFO has also ensured that 25% amount is always maintained as minimum balance in the members’ account. With this, members will continue to get the benefit of interest rate of 8.25% and compound interest, which will enable them to generate a substantial fund for retirement.
4. Easy auto settlement process
There will be no need to submit any documents under the new rules. There are preparations to completely automate the withdrawal process, which will result in faster settlement of claims. Also, the period for premature final settlement has been increased from 2 months to 12 months and the period for pension withdrawal from 2 months to 36 months. This will enable members to withdraw money for their needs, that too without using their retirement funds.
5. Vishwas Scheme: Relief in fines
EPFO has launched ‘Vishvas Yojana’ to reduce pending cases and fines. Fines worth Rs 2,406 crore and more than 6,000 cases are pending till May 2025. Under this scheme, the penalty rate for late deposit of PF has now been reduced to 1% per month.
There will be a penalty of 0.25% on delay up to 2 months and 0.50% on delay up to 4 months. This scheme will run for 6 months and if needed, it can be extended for another 6 months.
6. Digital facility for pensioners
EPFO has entered into an agreement with India Post Payments Bank (IPPB), under which EPS 95 pensioners will be able to submit Digital Life Certificate (DLC) sitting at home. This facility will be free and EPFO will bear its cost (Rs 50 per certificate). Especially the pensioners of rural and remote areas will get great relief from this.
7. EPFO 3.0: Digital Revolution
EPFO has approved ‘EPFO 3.0’ digital transformation framework to further modernize its services. This will include facilities like cloud-based technology, mobile app and automatic claim settlement. With this, more than 30 crore members will get fast, transparent and easy services.
8. Improvement in fund management
The board has selected four fund managers for the debt portfolio of EPFO for 5 years. This step will ensure better returns on members’ PF funds by making investments safe and diverse.
Labor Minister started
In the meeting, Labor Minister Mandaviya also inaugurated several digital initiatives, which will make EPFO services more transparent, faster and convenient for users. With these new rules and schemes of EPFO, employed people will get the facility to easily withdraw money for their needs, and the savings for retirement will also be safe.
Read this news also…
You will be able to withdraw ₹ 5 lakh from PF account in 72 hours: Investigation by officials will not be necessary, earlier its limit was ₹ 1 lakh.
Now you will be able to withdraw up to ₹5 lakh from PF account in 72 hours in case of emergency or need. Earlier this limit was ₹ 1 lakh. Union Minister Mansukh Mandaviya gave this information on June 24. Earlier, Sumita Dawra, Secretary, Ministry of Labor and Employment, had passed this proposal in the 113th meeting of the Executive Committee (EC) of EPFO held in Srinagar on March 28. Read the full news…
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