The central government has announced an important update for Provident Fund (PF) account holders, allowing higher withdrawal limits during emergencies. Union Labor and Employment Minister Mansukh Mandaviya revealed that the withdrawal limit from PF accounts has now been increased from ₹50,000 to ₹1 lakh. This is great news for members of the Employees’ Provident Fund Organization (EPFO), as the change provides better financial flexibility in case of emergencies like medical treatments, education, or urgent family needs.
Immediate Access to PF Funds for Emergencies
In addition to increasing the withdrawal limit, the government has also relaxed several rules related to PF withdrawals. If an employee changes jobs, they can now access their PF funds within the first six months of joining the new employer. Earlier, employees had to wait much longer to access their funds. The government’s decision allows employees to withdraw money faster during crucial times, such as job transitions or urgent financial situations.
Minister Mansukh Mandaviya highlighted the government’s commitment to supporting PF account holders, stating that this update makes it easier for contributors to use their own money when needed. Additionally, the government is also considering raising the income limit for mandatory provident fund contributions, making it more accessible to a broader section of the workforce.
EPFO’s Interest Rates Remain Attractive at 8.25%
The EPFO currently offers an interest rate of 8.25% on PF deposits, giving account holders a secure way to grow their savings. This interest rate, combined with the increased withdrawal limits, is expected to provide PF contributors with more financial flexibility and security in managing their funds during critical times.
Steps to Withdraw Money from Your PF Account
- Eligibility for PF Withdrawal: PF withdrawals can be made for various reasons such as medical treatment, education, or family-related emergencies, as approved by the EPFO.
- Log in to the EPFO Portal: Access the EPFO Member e-Seva Portal and log in using your Universal Account Number (UAN), password, and captcha.
- Submit a Claim: After logging in, go to the ‘Online Services’ tab and select the ‘Claim (Form-31, 19, 10C & 10D)’ option from the dropdown menu.
- Verify Personal Details: Ensure your details such as name and date of birth are correct. Make sure your Aadhaar is linked, and your KYC details are updated for a smooth process.
- Select Form 31 for Partial Withdrawals: Choose Form 31 from the menu and select your reason for withdrawal from the list provided by EPFO.
- OTP Authentication: After submitting your request, an OTP will be sent to the mobile number linked with your Aadhaar. Enter this OTP to authenticate the claim.
- Track Your Claim Status: Once submitted, you can monitor the status of your claim under the ‘Track Claim Status’ option in the ‘Online Services’ section.
- Money Transfer Time: Typically, EPFO transfers the funds within 7-10 working days to the bank account registered with your PF account.
This update brings much-needed relief to PF contributors, allowing them to access their savings more easily in times of need. The process has become simpler and faster, ensuring that employees can access their funds when required without unnecessary delays.
