Employees’ Provident Fund Organization (EPFO) subscribers can now withdraw up to ₹ 1 lakh at a time from their PF account for personal needs. Till now this limit was ₹ 50,000.
Union Labor and Employment Minister Mansukh Mandaviya said in a press conference on Tuesday, if you are an EPFO contributor and there is an emergency in the family, then you can now withdraw more amount. The lump sum withdrawal limit has been increased. This initiative of the government will benefit millions of PF account holders.
What changes have been made to the withdrawal conditions?
Informing about the rule changes, Mandaviya said the government has relaxed the rules, allowing people to withdraw within the first six months of a new job. “Earlier, you had to wait a long time, but now, PF contributors can withdraw even in the first six months… it’s their money,” he said. He further said the labour ministry is working to improve EPFO’s operations, introducing a new digital framework and updated guidelines to reduce hassles for subscribers. One important change is that new employees can now withdraw funds without waiting for six months, unlike previous rules that restricted early access.
Also Read: What is the difference between EPF, PPF and GPF account?
Will there be further changes in the Provident Fund rules?
Mandaviya informed that the government is planning to increase the income limit for mandatory provident fund contribution. Currently, salaried employees earning up to Rs 15,000 are required to make the contribution, but this limit is going to increase. The income limit for Employees’ State Insurance, which is currently Rs 21,000, will also be increased. “For employees earning more than Rs 15,000, we are bringing flexibility, which will allow them to choose how much of their income they want to set aside for retirement and pension benefits,” the minister said.
What is the present Provident Fund system?
Under the Employees’ Provident Funds and Miscellaneous Provisions Act 1952, companies with 20 or more employees must contribute to a provident fund. This involves deducting at least 12% of an employee’s salary, with the employer matching the contribution.
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