EPFO Allows Employees to Withdraw After 30 Jobless Days
In a significant move towards refining PF withdrawal rules, EPFO has decided to allow jobless employees to withdraw 75% of the amount. The time extension for unemployment is now one month instead of two months. Moreover, the employee can continue his/her account with EPFO body instead of closing the account. This clearly means that if an employee loses a job, he/she can withdraw three-fourth of PF amount after remaining jobless for one month.
This is a major provision in the EPFO 1952 Act. This amendment is allowed to help the employees who have lost a job. The 75% fund will be withdrawn as an advance from the PF account. Labour minister has confirmed the amendment on 26th June 2018.
What is the New PF Withdrawal Rule for Unemployment
Before this amendment came, an unemployed EPFO member could withdraw PF only after 2 months of employment in one go and the account will be closed. This new amendment in PF withdrawal rules allows employees will allow members to keep the account running. The employee can continue the same PF account once he/she gets a new job.
The withdrawal will help employees to keep on going even when they are unemployed. Though the proposal was for withdrawal of 60% of the funds, CBT increased it to 75%.
Will the PF Withdrawal Mean Closure of PF Account
The Labour Minister Mr Gangwar also said that employee can withdraw only 75% of the PF account after one month of unemployment. However, when the EPFO member withdraws remaining 25%, his/her provident account will be closed.
This definitely offers a financial security to those who are losing a job for some reason. Until the employee gets a new job, the funds will help. Once a new job is available, the member can transfer the PF account to the new employer.
In the economic world, where laying off employees is not an uncommon thing, this comes as a good relief for the employees. Many industrial segments or companies lay off their employees due to various financial and market reasons. Employees can now withdraw PF money as well secure their account. If they wish to discontinue the account, they can withdraw full amount.
If you want to withdraw your PF, check the complete PF withdrawal procedure. Employees can download the new composite Aadhar and Non-Aadhar PF forms online. Refer to our EPFO section for all the information related to withdrawal of PF money. To know the amount in your PF account, download PF statement online or check your EPF passbook.
Since now EPFO is also investing in shares, a proposal is approved to expand the number of equities. Currently, the EPFO invests in equities of Nifty 50 and Sensex 30.
Myepfbalance.co.in will keep you updated on all the latest amendments and notifications related to the provident fund. Subscribers of national pension scheme may also refer to our Pension section for useful information on retirement planning. Our website is helping employees by providing information on provident fund withdrawal rules, gratuity calculation, and pension.