The date of October 13 will be recorded in history for crores of subscribers of EPFO. The Central Board of Trustees of EPFO approved the proposal for major changes in many rules including withdrawal. This means that people doing private jobs will be able to withdraw the money deposited in their EPF account easier than before. Let us know about these big changes.
1. Only 12 months service period is required to withdraw money.
EPFO Has reduced the service period required for withdrawal to only 12 months. Earlier there was a rule of different service periods for different needs. For example, for marriage, a service period of 7 years was required for withdrawal. Due to this the subscriber had to wait a lot.
EPFO has said that subscribers will be allowed to withdraw 100 percent of the money deposited in their EPF account. But, keeping retirement in mind, it has imposed a condition of maintaining 25 percent balance in the account. This means that subscribers can withdraw 75 percent of the money.
3. Now only three conditions for withdrawal
Earlier there were several conditions for subscribers to withdraw their money. This caused a lot of confusion. The approval process took a lot of time. Many times the application was rejected. Now EPFO has set only three conditions for withdrawal – Essential Needs, Housing Needs and Special Circumstances.
4. No documents will be required for withdrawal
Under the new rule, if a subscriber makes a withdrawal under certain conditions, then he will not have to submit any kind of document. Experts say that this will significantly reduce the time taken in the withdrawal process. The subscriber will not have to face the hassle of collecting documents.
5. Permission to withdraw more money for marriage and education
Now subscribers will be able to withdraw more money for marriage and education. Withdrawal can be made 10 times for education and 5 times for marriage. Earlier only a total of three withdrawals were allowed. Experts say that in view of the increasing expenditure on education and marriage, the withdrawal limit has been increased.
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6. 12 month wait to apply for settlement
EPFO has already made the rules for applying for PF settlement stricter. Earlier one could apply after two months of leaving the job. Now you will have to apply for PF settlement after 12 months of leaving the job. For pension withdrawal you will have to apply after 36 months.