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Ahead of the festive season, there’s some good news for working people across the country. The central government is preparing to ease the pockets of employees. If you also contribute a portion of your salary to your Provident Fund (PF), withdrawing your money may now be easier than ever.
The government is soon going to simplify EPFO withdrawal rules. This will directly benefit millions of employees, who will no longer have to face strict conditions for expenses like marriage, buying a house, or children’s education.
According to two senior government officials, EPFO subscribers will now be given more freedom to withdraw funds as per their needs. Currently, the entire PF amount can be withdrawn only after reaching the retirement age (58 years) or after being unemployed for more than two months. Additionally, several conditions and time limits apply to withdrawals from PF for marriage, buying a house, or children’s education.
Difficulties with Current Rules
Withdrawal for marriage – At least 7 years of service is required before you can withdraw up to 50% of your funds.
For house purchase/construction – 3 years of service is required before you can withdraw up to 90%.
For children’s education – 50% PF withdrawal is available only after 7 years of service.
This means employees have to wait several years to access their own money.
What could change?
According to a report, the government may allow subscribers to withdraw a larger portion of their deposits every 10 years. Officials say that it is their money and they should have the freedom to use it as needed.
What do experts say?
Experts believe that this change will prove to be a major relief, especially for employees in the lower and middle-income groups. Currently, strict rules and lengthy paperwork force people to take out loans to fund their own money. If the new rules are implemented, employees will be able to meet their real-life needs without taking loans.
