PF Withdrawal Rule Changed: Mandaviya informed that the government is planning to increase the income limit for mandatory provident fund contribution. Currently, salaried employees earning up to Rs 15,000 are required to contribute, but this limit is going to increase.
PF Withdrawal Rule Changed: Employees Provident Fund Organization (EPFO) contributors can now withdraw up to ₹ 1 lakh at a time from their PF account for personal needs. Till now this limit was ₹ 50,000. Union Labor and Employment Minister Mansukh Mandaviya said in a press conference on Tuesday, if you are an EPFO contributor and there is an emergency in the family, you can now withdraw more money. The lump sum withdrawal limit has been increased. This initiative of the government will benefit millions of PF account holders.
What changes have been made in the withdrawal conditions?
Giving information about the change in the rule, Mandaviya said that the government has relaxed the rules, allowing people to withdraw within the first six months of the new job. Earlier, you had to wait a long time, but now, PF contributors can withdraw even in the first six months… it’s their money, he said. He further said that the labour ministry is working to improve the operations of the EPFO, introducing a new digital framework and updated guidelines to minimise hassles for subscribers. A key change is that new employees can now withdraw funds without waiting six months, unlike previous rules that restricted early access.
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Will there be more changes in provident fund rules?
Mandaviya informed that the government is planning to increase the income limit for mandatory provident fund contribution. Currently, salaried employees earning up to Rs 15,000 are required to contribute, but this limit is going to increase. The income limit for Employees’ State Insurance, which is currently Rs 21,000, will also be increased. “For employees earning more than Rs 15,000, we are introducing flexibility that will allow them to choose how much of their income they want to set aside for retirement and pension benefits,” the minister said.
What is the current provident fund system?
Under the Employees’ Provident Fund and Miscellaneous Provisions Act 1952, companies with 20 or more employees must contribute to the provident fund. This involves deducting at least 12% of an employee’s salary, with the employer matching the contribution.
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