EPFO new rules: The EPFO has provided significant relief to employees. Members will now be able to withdraw the full amount from their EPF accounts. The new rules eliminate the need for documentation. A new digital facility has been launched for pensioners. Learn the details.
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EPFO new rules: The Employees’ Provident Fund Organization (EPFO) made several major decisions at its Central Board of Trustees (CBT) meeting on Monday, October 13th. The meeting, chaired by Union Labor Minister Mansukh Mandaviya, approved several key changes aimed at providing relief to working individuals. Withdrawing funds from your EPF account has become easier than ever.
100% withdrawal facility now available
The EPFO has eliminated 13 complex rules and now has only three categories for withdrawals from your PF account: essential needs (such as illness, education, marriage), housing needs (house-related expenses), and special circumstances. Members can now withdraw the entire amount deposited in their EPF account, including both the employee and employer’s share.
Previously, only three withdrawals were allowed for education and marriage. However, now 10 withdrawals can be made for education and five for marriage. Furthermore, the minimum service period has been reduced to 12 months.
Automatic Settlement Process
No documentation will be required now. EPFO is fully automating the withdrawal process to expedite claim settlement. The final settlement deadline has been extended from 2 months to 12 months, and the pension withdrawal period has been extended from 2 to 36 months. This will allow members to withdraw funds easily if needed.
Withdrawal Facility Without Providing Reasons
Previously, in situations such as natural disasters, pandemics, or unemployment, it was necessary to provide a reason for withdrawal. Now, EPFO has removed this requirement. This means that under special circumstances, members can withdraw funds without providing a reason.
25% Minimum Account Balance Required
EPFO has determined that a minimum balance of 25% must always be maintained in a member’s account. This will ensure they receive the benefit of an 8.25% interest rate and compound interest, creating a substantial fund for retirement.
New Digital Facility for Pensioners
EPFO has launched a new facility in collaboration with India Post Payments Bank (IPPB). Under this facility, EPS 95 pensioners will be able to submit digital life certificates from the comfort of their homes. This service will be completely free and EPFO will bear the expenses. This will provide significant relief, especially to pensioners in rural areas.
Penal Relief through ‘Vishwas Yojana’
EPFO has launched the ‘Vishwas Yojana’ to reduce the heavy penalties levied for late PF deposits. The penalty will now be 1% per month for delays up to 2 months, 0.25% for delays up to 2 months, and 0.50% for delays up to 4 months. This scheme will run for 6 months and can be extended if needed.
EPFO 3.0: Digital Transformation
EPFO will now operate on a digital framework called ‘EPFO 3.0’. It will include features such as cloud technology, mobile apps, and automatic claim settlement. This will provide faster and more transparent services to approximately 300 million members.
Improvements in Fund Management
The EPFO has appointed four new fund managers for its debt portfolio over a five-year period. This will diversify investments and increase the potential for better returns on PF.
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