If you are an EPF account holder or your family, friend, companion, friend or friend has any relation with it, then there is a good news for you. Although the word ‘maybe’ is still attached to it. But the news is really good.
Actually, the central government is considering making a big change in the rules of withdrawal from EPF account (Employees Provident Fund Organisation). Now Provident Fund account holders (EPF subscribers) can be allowed to withdraw their entire deposit amount or a part of it once every 10 years.
Currently, salaried employees have to wait till retirement to withdraw the entire amount. Whether they are in a government job or work with private institutions. Although withdrawal of money is still allowed in some cases, but there is a limit to it.
According to a Moneycontrol report , the central government is seriously considering the EPFO proposal. Under this proposal, members will be able to withdraw money from their accounts every 10 years. According to an official,
“Each member’s corpus grows substantially every decade. So they should have the freedom to decide where and how they want to use it.”
At present, it is possible to withdraw the entire amount from EPF only in two situations. First, when the member retires (usually at the age of 58 years), second, when he remains unemployed for more than two months. Apart from this, partial withdrawal from EPF is allowed under certain circumstances. Up to Rs 5 lakh can be withdrawn with the help of PF advance claim.
For your information, let us tell you that during the time of COVID-19, the government started the facility of auto settlement under PF. Under this process, PF consumers can claim PF amount online through EPFO portal or Umang app without going to the PF office. This entire process is automatic, meaning there is no human check point of any kind from the PF office. After COVID-19, this facility has also been expanded to cover advance claims for illness, education, marriage and home.
But if the new proposal is implemented, members will be able to withdraw their entire EPF amount even at the age of 30 or 40. However, an official also indicated that the government may limit the withdrawal to only 60%, not the entire amount. We will share with you any further update in this news.
