The retirement fund body, Employees’ Provident Fund Organisation (EPFO), has relaxed withdrawal rules to provide more liquidity to its subscribers. Now you are allowed to withdraw as much as 90 per cent of your money as partial withdrawal if you have completed 54 years of age and within one year of retirement or superannuation, whichever is later. This has been a welcome move for people who take early retirement, as now they do not have to wait till they turn 60 to withdraw their money.
EPFO has also relaxed rules to reduce the loan burden of subscribers. In another change, you are now allowed to withdraw up to 36 month’s basic wage and DA or total of employee and employer share with interest or total outstanding principal and interest, whichever is least for repayment of loans provided you have been a member of EPFO for at least 10 years.
For meeting marriage expenses also you can now withdraw 50 percent of your share with interest, provided you have been with EPFO for at least seven years.
EPFO recently also gave you option to withdraw 75 per cent of your funds after one month of unemployment and keep your PF account with the body. You are given the option to withdraw remaining 25 per cent of your funds and go for final settlement of account after completion of two months of unemployment under the new provision in the Employee Provident Fund Scheme 1952.
Labour Minister Santosh Kumar Gangwar, who is also the Chairman of EPFO’s Central Board of Trustees, told reporters after the trustees meet, “We have decided to amend the scheme to allow members to take advance from its account on one month of unemployment. He can withdraw 75 per cent of its funds as advance from its account after one month of unemployment and keep its account with the EPFO.”