People often encounter various difficulties when withdrawing funds from the pension fund (PF). However, thanks to changes in the rules approved by the EPFO, the process of obtaining this money has become significantly simpler.
If you need funds for medical needs, paying for children's education, a wedding, or building a house, you can make a partial withdrawal from your PF account. The EPFO has developed flexible and simplified rules for its members to facilitate access to pension savings.
Under the new framework approved by the Ministry of Labour and Employment, employees can easily withdraw up to 75% of their PF balance in case of emergencies. The EPFO has abolished the complex withdrawal process that previously involved 13 different conditions and categories, reducing them now to just three.
Previously, different types of withdrawals required a work experience of three to seven years. The new provisions have lowered the minimum membership period for most advance withdrawals to just 12 months, or one year. Furthermore, the withdrawal amount will now include not only your own contribution but also the employer's contribution and the interest accrued on both contributions. This increases the chances of members receiving a larger sum upon withdrawal.
If you lose your job or resign voluntarily, you have the right to immediately withdraw 75 percent of the total PF balance as soon as you become unemployed. The remaining 25 percent can only be withdrawn after you have been unemployed for 12 months. It is worth noting that the old rules provided for a full 100% PF withdrawal after two months of unemployment, but this provision has been changed to ensure future financial stability.