New Delhi. This year, Employees’ Provident Fund Organization (EPFO) has implemented major changes in other related rules including partial and complete withdrawal from PF account. Its aim is to make the withdrawal process easy, fast and transparent for everyone. With these changes, EPFO members can now utilize their deposits in a better way than before.
1. Withdrawal on leaving job
As per the earlier rules, if an EPFO member remained unemployed for one month, he could withdraw 75% of the amount from his PF account and after two months of unemployment, the remaining 25% was also allowed to be withdrawn. Under the new rules, an employee can withdraw 75% of the amount immediately after leaving the job, but the remaining 25% can be withdrawn after 12 months of continuous unemployment.
2. Pension withdrawal after job loss
Earlier, withdrawal of pension amount was allowed after two months of unemployment after leaving the job. Now under the new rules this waiting period has been extended. Members will now be able to withdraw their pension amount only after 36 months of unemployment.
3. For medical treatment
Earlier, members could withdraw six months’ basic salary and dearness allowance or the employee’s own contribution, whichever was less. This facility could be availed more than once. This arrangement has been retained in the new rules also but now a service condition of 12 months has been imposed for it.
4. For education and marriage
Under the old rules, one could withdraw up to 50% of the contribution after completion of seven years of membership. During this period, three withdrawals were allowed for education and two for marriage. Under the new rules, now money can be withdrawn up to 10 times for education and up to five times for marriage related expenses.
5. To buy and build a house
Earlier, for buying a house, building a house or taking a plot, withdrawal could be made from the PF account only after completion of 24 to 36 months of service. Members could withdraw up to 90% of the total contribution along with interest or the cost of purchase, whichever is lower. Under the new rules, now a minimum service period of 12 months has been fixed for all types of partial withdrawals. Rest of the conditions will remain the same.
6. Rules on closure of company
Earlier, if a company was closed, an employee could withdraw from his PF account, but this amount was either limited to the employee’s share or was allowed only up to 100% of the total deposit amount. Now according to the new rules, the employee can withdraw only 75% of the total PF fund, while it will be mandatory to keep 25% of the amount in the account, so that the minimum deposit is maintained.
7. In an epidemic-like situation
Earlier, in case of any epidemic or pandemic-like situation, employees could withdraw three months’ basic salary and dearness allowance or 75% of the PF fund, whichever is less. Now in the new rules also this condition has been kept almost the same as before, but the rules have been made more clear so that the process can be made easier for all the members.
8. Natural disaster
Under the earlier rules, withdrawals from the PF account in the event of a natural calamity could be made up to ₹5,000 or 50% of the employee’s own contribution (including interest), whichever is lower. Under the new rules, a minimum service period of 12 months has been fixed for all partial withdrawals, including this category. This means that to withdraw partial money from the PF account, it will now be necessary to complete at least one year of service.
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