EPFO new rules: The Employee Provident Fund Organization (EPFO) took several major decisions in the Central Board of Trustees (CBT) meeting held on Monday, October 13. Many important changes were approved in this meeting chaired by Union Labor Minister Mansukh Mandaviya. Their objective is to provide relief to employed people. Now withdrawing money from EPF account has become easier than ever.
Now you will get 100% withdrawal facility
EPFO has abolished the old 13 complicated rules and has now created only three categories, when you will be able to withdraw money from your PF account. Essential needs (such as illness, education, marriage), housing needs (house-related expenses) and special circumstances. Now members can withdraw the entire amount deposited in their EPF account, which will include the share of both the employee and the employer.
Earlier only 3 withdrawals were allowed for education and marriage. But, now withdrawal can be made 10 times for education and 5 times for marriage. Also, the minimum service period has been reduced to 12 months.
Automatic Settlement Process
Now no documents will be required. EPFO is making the withdrawal process completely automatic so that claims can be settled faster. The deadline for final settlement has been increased from 2 months to 12 months and the period for pension withdrawal from 2 to 36 months. With this, members will be able to easily withdraw money when needed.
Withdrawal facility without giving any reason
Earlier, in circumstances like natural disaster, epidemic or unemployment, it was necessary to give reasons for evacuation. Now EPFO has removed this obligation. This means that now in special circumstances members will be able to withdraw money without giving any reason.
25% minimum balance required in account
EPFO has decided that at least 25% of the amount should always remain in the member’s account. With this, they will continue to get the benefit of 8.25% interest rate and compound interest, which will create a good fund for retirement.
New digital facility for pensioners
EPFO has launched a new facility in collaboration with India Post Payments Bank (IPPB). Under this, EPS 95 pensioners will be able to submit digital life certificate sitting at home. This service will be completely free and the expenses will be borne by EPFO itself. This will provide great relief especially to the pensioners of rural areas.
Relief in fine from ‘Vishvas Yojana’
EPFO has launched ‘Vishvas Yojana’ to reduce the heavy penalty for late PF deposit. Now a maximum penalty of 1% per month will be imposed on delay. There will be a penalty of 0.25% for delay up to 2 months, and 0.50% for delay up to 4 months. This scheme will run for 6 months and can be extended further if needed.
EPFO 3.0: Digital Transformation
EPFO will now work on a digital framework named ‘EPFO 3.0’. This will include features like cloud technology, mobile app and automatic claim settlement. With this, about 30 crore members will get fast and transparent services.
Improvement in fund management
EPFO has selected four new fund managers for its debt portfolio for a period of 5 years. This will diversify investments and increase the chances of getting better returns on PF.
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