Employees Provident Fund Organization (EPFO) has made important changes in the rules of PF withdrawal, due to which now members will be able to withdraw up to 75% of the amount immediately after leaving the job and will have to remain unemployed for 12 months to withdraw the entire amount. The earlier 13 complex rules have now been divided into three simple categories Essential Needs, Residential Needs, and Special Circumstances, making the withdrawal process easier.
Despite these new rules, many misconceptions have spread on social media. The first myth is that it will not be possible to withdraw the entire amount after leaving the job, whereas the truth is that 75% of the amount can be withdrawn immediately. The second myth is that 25% of the amount is locked in the account, but this amount is reserved only for pension and does not pose a hindrance in withdrawal. The third myth is that pension will be cut due to frequent withdrawals, whereas this concern has been removed with the new rules.
Earlier government rules limited withdrawals to essential needs like marriage, education, and health, but now these rules have become more flexible. Under special circumstances, the facility of withdrawal without documents is available twice a year. In case of unemployment also, the withdrawal period has been increased from 2 months to 12 months, which will provide better support to the needy.
The purpose of these changes of EPFO is to simplify the process of withdrawing funds and ensure financial security of the members. Now employees can withdraw the required amount from their EPF account at the time of need, as well as keep the savings safe. These changes will prove to provide financial security and relief to millions of employees.
This new arrangement makes it clear that EPFO has given flexibility to the rules on a large scale so that the members can quickly access the funds as per their need, so that they can take better decisions in the economic crisis.