EPFO: The Employees’ Provident Fund Organization (EPFO) has announced EPFO 3.0. This includes significant changes to withdrawal rules for pension, advance claims and unemployment.
The new rules aim to simplify and streamline the access of employees to their provident fund.
What Has Changed With EPFO New Rules?
Previously, employees could only without 75 percent of EPF balance after 1 month of unemployment. The remaining 25 percent could have been withdrawn after a period of 2 months. Now, employees can withdraw 75 percent immediately and the remaining after 12 months of continuous unemployment.
Similarly, pension amount could only be withdrawn after 2 months of unemployment. Now, it can be withdrawn only after 36 months of unemployment.
What Else Has Changed?
Previously, employees keen to withdraw EPF in case of lockout or closure could only withdraw their share or up to 100 percent of the total share. Now, EPFO members can withdraw 75 percent of the EPF corpus and the remaining 25 percent can be retained as a mandatory minimum balance.
Likewise, up to 50 percent of contribution after 7 years of membership could be withdrawn previously. The number of times EPF can be withdrawn was 3 times for education and 2 times for marriage. Now, education withdrawals are allowed up to 10 times while marriage-related withdrawals are allowed up to 5 times during service.
Previously, employees could withdraw up to 36 months’ Basic Wages + DA, or total balance, or outstanding loan, whichever was less, only once during service. Now, same eligibility and limits are retained but the overall process has been simplified via digital requests.
