The Employees Provident Fund Organization ( EPFO ) has introduced a significant change, raising the withdrawal limit from ₹50,000 to ₹1 lakh. This update was announced by Union Labor Minister Mansukh Mandaviya in celebration of the government’s 100 days in office. Additionally, changes to withdrawal eligibility criteria have also been made.
Higher Withdrawal Limit for Emergencies
Union Minister Mansukh Mandaviya stated that EPFO account holders facing family emergencies can now withdraw a larger lump sum. The withdrawal limit has been increased, allowing employees to access their funds within the first six months of starting a job. Previously, individuals had to wait much longer, even if they left their job early. Now, they can access their provident fund (PF) after just six months of employment.
New Digital Infrastructure Launched
To make the process smoother, the government has introduced a new digital infrastructure for EPFO operations. This platform aims to simplify the withdrawal process, ensuring quicker access to funds for account holders.
Eligible Reasons for Withdrawal
EPFO allows members to withdraw funds for various reasons, including medical expenses, education, marriage, and other essential family needs. With the recent increase in the emergency withdrawal limit to ₹1 lakh, account holders can now access more of their savings for urgent situations.
Steps to Withdraw PF Funds Online
PF account holders can easily withdraw funds online for medical treatment, education, or any family emergency. Here’s how:
Interest Rate and EPFO Schemes
The EPFO offers an interest rate of 8.25% for the financial year 2024. This provident fund is a crucial source of retirement savings for over 10 million organized sector employees, particularly for the salaried middle class. The EPFO manages several employee benefit schemes, including provident fund, pension, and insurance. The recent changes have made it easier for account holders to access their savings when needed, enhancing financial flexibility.
Higher Withdrawal Limit for Emergencies
Union Minister Mansukh Mandaviya stated that EPFO account holders facing family emergencies can now withdraw a larger lump sum. The withdrawal limit has been increased, allowing employees to access their funds within the first six months of starting a job. Previously, individuals had to wait much longer, even if they left their job early. Now, they can access their provident fund (PF) after just six months of employment.
New Digital Infrastructure Launched
To make the process smoother, the government has introduced a new digital infrastructure for EPFO operations. This platform aims to simplify the withdrawal process, ensuring quicker access to funds for account holders.
Eligible Reasons for Withdrawal
EPFO allows members to withdraw funds for various reasons, including medical expenses, education, marriage, and other essential family needs. With the recent increase in the emergency withdrawal limit to ₹1 lakh, account holders can now access more of their savings for urgent situations.
Steps to Withdraw PF Funds Online
PF account holders can easily withdraw funds online for medical treatment, education, or any family emergency. Here’s how:
- Visit the EPFO member e-service portal.
- Log in with your UAN (Universal Account Number), password, and captcha.
- Navigate to the 'Online Services' tab and select 'Claim (Form-31, 19, 10C, 10D)'.
- Verify your personal details and update them if necessary.
- Select Form 31 for partial withdrawal and choose the reason for withdrawing.
- Submit the request and enter the OTP sent to your Aadhaar-linked mobile number.
- You can track the claim status under the ‘Track Claim Status’ option.
- Typically, funds are transferred to your bank account within 7-10 working days.
Interest Rate and EPFO Schemes
The EPFO offers an interest rate of 8.25% for the financial year 2024. This provident fund is a crucial source of retirement savings for over 10 million organized sector employees, particularly for the salaried middle class. The EPFO manages several employee benefit schemes, including provident fund, pension, and insurance. The recent changes have made it easier for account holders to access their savings when needed, enhancing financial flexibility.
