In a major update, the Employees’ Provident Fund Organization ( EPFO ) has increased the advance withdrawal limit for PF account holders . You can now withdraw up to Rs 1 lakh in advance from your Provident Fund ( PF ) account, doubling the previous limit of Rs 50,000. This change was announced by Union Labor Minister Mansukh Mandaviya as part of the government’s 100-day completion celebration, alongside another key update to PF rules.
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Increased Withdrawal for Emergencies
Mansukh Mandaviya shared that PF account holders can now access higher amounts in case of family emergencies. The withdrawal limit has been raised significantly, and in addition, employees can now withdraw funds within six months of starting a job. Previously, employees had to wait much longer to access their PF savings. Now, even if they leave their job within the first six months, they can still withdraw money from their PF account.
Launch of New Digital Infrastructure
The minister also announced the launch of a new digital infrastructure designed to streamline EPFO operations and simplify the withdrawal process. This new system aims to provide quicker and more efficient access to funds for account holders, reducing the challenges previously faced when trying to withdraw money.
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When Can You Use This Fund?
The EPFO allows account holders to withdraw funds for several essential needs. These include retirement, medical emergencies, and other significant life events such as marriage or education. With the recent rule changes, up to Rs 1 lakh can now be withdrawn for these purposes, offering greater financial flexibility for account holders facing urgent needs.
Steps to Withdraw Money from Your PF Account
If you need to withdraw money from your PF account, follow these steps:Visit the EPFO member e-service portal.Go to the member section and log in using your UAN (Universal Account Number), password, and captcha.Navigate to the ‘Online Services’ tab and select ‘Claim (Form-31, 19, 10C, and 10D)’ from the menu.Verify and update your personal details, including name, date of birth, and other information.Choose Form 31 for partial withdrawal and select the reason for withdrawal from the given options.Submit the request and enter the OTP received on your Aadhaar-linked mobile number.You can track your claim status through the ‘Track Claim Status’ option in the ‘Online Services’ tab.
Once submitted, EPFO typically transfers the funds to your bank account within 7 to 10 working days.
Current Interest Rate and EPFO Overview
For the financial year 2024, the EPFO has set the interest rate on provident fund savings at 8.25%. Serving over 10 million employees in the organized sector, the EPFO plays a critical role in providing retirement savings through schemes such as the Employees’ Provident Fund (EPF), pension plans, and insurance. This recent change in withdrawal rules provides additional flexibility for employees looking to access their PF funds during times of need.
With these updated rules, the government aims to make PF accounts more accessible and beneficial for the salaried class, offering them a reliable source of emergency funds while continuing to provide long-term savings for retirement.
