– Advertisement –
EPFO New Rules: EPFO has changed the rules for PF withdrawals. Now, after leaving a job, you must remain unemployed for 12 months to withdraw your full PF balance. The new rule is beneficial for private sector employees, as it ensures service continuity and provides them with more funds upon retirement.
EPFO New Rules: The Employees’ Provident Fund Organization (EPFO) has made a major change to its rules. While withdrawing your entire PF immediately after losing your job isn’t as easy as before, it offers significant benefits, especially for private sector employees who frequently change jobs or become unemployed due to circumstances.
What’s changed in the new rule?
Now, to withdraw your entire PF after leaving your job, you must remain unemployed for 12 months. Previously, this period was only 2 months. This means that an employee can now withdraw their entire PF only after being unemployed for one year.
Furthermore, the final pension withdrawal limit has been increased from 2 months to 36 months. According to the EPFO, this change is in the best interest of employees. This change will provide long-term financial security to individuals, ensuring their retirement savings are protected.
Who will benefit?
This rule could prove to be a boon for private sector employees. While it may be difficult for those who frequently change jobs or face occasional unemployment to withdraw their PF early, it will benefit them. Their service history will remain continuous, meaning that when they join a new job, their PF account will continue from there. This will directly benefit them by increasing both their PF funds and pension at retirement.
PF breaks impacted pensions.
According to the EPFO, previously, people used to withdraw PF frequently, which led to breaks in their service. This impacted their pensions, and many cases were even rejected. Now, the new rule will ensure that employees maintain continuity in their job and provide better financial security in the future.
Has withdrawing PF become more difficult now?
It’s not. If someone needs money immediately after leaving their job, they can withdraw up to 75% of their PF. And if they remain unemployed for 12 months, they can withdraw the entire amount. EPFO has clarified that the new rules simplify and digitalize the withdrawal process, so that employees can withdraw their money without hassle if needed.
What is the overall benefit?
This change will greatly benefit employees in the long term. Now their funds will be safe until retirement, and they will receive a higher pension amount than before. These new EPFO rules may sound a bit strict, but in reality, they are designed for the long-term well-being of employees.
IRCTC has given a big relief to train passengers, they can change their travel date without any ticket cancellation charges.
– Advertisement –
#EPFO #Rules #difficult #withdraw #losing #job #big #benefit #retirement #WhoWiki.org
