New Delhi: There are many rules for withdrawing money from Employees Provident Fund Organization (EPFO) accounts. The Provident Fund money is boon for employees as it comes in very handy in financial difficulties and emergency situations. In this article, we will inform you about the main provisions and circumstances of PF withdrawal.
Meanwhile, Union Minister Mansukh Mandaviya recently announced that EPFO 3.0 will be rolled out by June 2025. The minister assured that the new system will improve efficiency and offer a seamless experience to EPFO members. The Provident Fund regulatory body said EPFO 3.0 will allow ATM-enabled withdrawals, providing quicker access to funds.
PF withdrawal during job loss, retirement
If an individual is without a job for more than a month, the PF account holder can withdraw 75 per cent of the amount deposited in his Provident Fund account. This provision helps the account holders to get provide financial assistance when the person is unemployed. If an employee is fired from the job, the person can withdraw 50 per cent of the amount from his PF account. It is mandatory to provide proof of unemployment at the time of application for PF withdrawal.
If the operations of a company remains shut for for six months or more, the employee can withdraw the entire PF amount. However, when the company restarts, the amount withdrawn has to be returned in 36 installments.
In case of emergency, for example of a company halts its operations for more than 15 days, the employees are eligible to withdraw the entire 100 per cent amount from their PF account. This provision is designed for those employees whose livelihood depends on company operations.
EPFO provides two options to withdraw money from PF account after retirement. First is to withdraw the entire PF amount. Another option is to withdraw 75 per cent as lump sum and 25 per cent as monthly pension.
The process of PF withdrawal can now be completed through digital medium. The Provident Fund account holders are mandated to update UAN (Universal Account Number) and bank account details. The provisions for withdrawal from PF account ensure financial security of the employees. Its use at the right time helps in overcoming difficult situations.
This article details EPFO withdrawal rules, covering scenarios like job loss, company closure, and retirement. It explains permissible withdrawal percentages (75%, 50%, 100%) based on circumstances, including the option of a lump sum or pension after retirement. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
