EPFO New Rules: When Can We Withdraw Up To 100 Percent of the PF Balance?

As every salaried person gets a Provident Fund, they can also withdraw a certain amount of money from their PF balance. As per the recent report, let’s understand the new EPFO rules and know how we can withdraw 100% of the money from the balance.

By streamlining its withdrawal rules, the Employees’ Provident Fund Organisation (EPFO) has made it simpler for members to know when and how much PF money they are eligible to withdraw.

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Previously, there were about 13 distinct categories for PF withdrawals. Each category had a different service need, lasting between two and seven years. This made the procedure difficult to understand, particularly in emergency situations. The EPFO has now broken these categories down into five major groups. Members will be able to determine if they are eligible for membership more easily thanks to this change, which eliminates the need for them to spend hours reviewing the regulations.

One of the most notable changes is the adoption of a uniform minimum service period. The majority of partial withdrawal kinds now only need 12 months of membership service.

The revised structure allows for withdrawals that include both employer and employee contributions as well as the interest gained. In many instances, members are now able to withdraw as much as 75% of their entire eligible PF balance.

Despite the increased flexibility of the regulations, EPFO has maintained protections in place to safeguard long-term savings. To discourage frequent withdrawals, about 25% of the PF balance is effectively protected.

The circumstances under which a member may withdraw up to 100% of their PF funds after completing one year of employment are clearly outlined by the EPFO. These include expenditures for education, marriage costs, healthcare for the member or family and housing needs like purchasing a home, building it, paying off a loan or making significant repairs.