The central government is preparing to lighten the pockets of employees. If you also contribute a portion of your salary to a Provident Fund (PF), withdrawing your money may now be easier than ever.
Ahead of the festive season, there’s some good news for working people across the country. The central government is preparing to lighten the pockets of employees. If you also contribute a portion of your salary to the Provident Fund (PF), withdrawing your money may now be easier than ever. The government is soon going to simplify EPFO withdrawal rules. This will directly benefit millions of employees, who will no longer have to face strict requirements for expenses like marriage, buying a house, or children’s education.
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According to two senior government officials, EPFO subscribers will now be given greater freedom to withdraw funds based on their needs. Currently, full PF funds can only be withdrawn upon reaching the retirement age (58 years) or after being unemployed for more than two months. Furthermore, withdrawals for marriage, housing, or children’s education are subject to several conditions and time limits.
Difficulties with current rules:
Withdrawal for marriage— at least seven years of service is required to withdraw up to 50%.
For house purchase/construction— three years of service is required to withdraw up to 90%.
For children’s education— the option to withdraw up to 50% of PF is available only after seven years of service.
This means employees have to wait several years to access their own funds.
What could change?
According to a report, the government may allow subscribers to withdraw a larger portion of their deposits every 10 years. Officials say it’s their money and they should be free to use it as needed.
What do experts say?
Experts believe this change will be a significant relief, especially for employees in the lower and middle-income groups. Currently, stringent regulations and lengthy paperwork force people to borrow against their own money. If the new rules are implemented, employees will be able to meet their real-life needs without debt.
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