New Delhi. A big good news has emerged for crores of employed people of the country. Employees’ Provident Fund Organization (EPFO) is going to make such a big change in its system that it will become easier and faster than ever to withdraw Provident Fund (PF). In the coming time, EPF account holders will also be able to withdraw their PF through digital means like ATM and UPI. This facility is set to be implemented before March 2026.
According to Union Labor Minister Mansukh Mandaviya, the government aims to make the EPF withdrawal process completely digital and employee-friendly. At present, employees can withdraw up to 75 percent of their PF if needed, but after the implementation of the new system, this process can be completed in just a few clicks.
Why were these changes necessary?
At present, to withdraw PF, employees have to go through many forms and procedures. Claims often get rejected or payment is delayed due to different terms and conditions for different reasons. In view of these problems, EPFO has taken steps towards simplifying the entire system, so that employees do not have to worry about their own money.
Major reforms in PF rules
EPFO has recently approved many important reforms related to PF. Earlier there were about 13 different categories for PF withdrawal, in which the service period and conditions were different. Now by combining all these the rules have been simplified. The biggest change is that now PF withdrawal will include not only the employee’s contribution, but also the employer’s contribution and the interest received on it. That means when an employee withdraws 75 percent PF, he will get more amount than before.
Eligibility rules also became simple
Earlier, there was a service condition of 2 to 7 years for PF withdrawal depending on different reasons. Now it has been made equal in all cases. Under the new system, an employee can withdraw more amount after just 12 months of employment. In case of unemployment, the employee can withdraw 75 percent PF immediately, while the remaining 25 percent can be withdrawn after one year. There will be facility to withdraw full PF in circumstances like retirement, permanent disability, VRS, layoff from job or permanent settlement abroad.
What are the benefits for the employees?
These changes will make the EPF system more transparent, faster and reliable. PF withdrawal through digital means will not only save time, but employees will also not have to visit offices. Overall, this step of EPFO has brought great relief to crores of employees and will prove to reduce the problems related to PF to a great extent in future.
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