Mumbai, July 10: Employees’ Provident Fund Organisation (EPFO) or the retirement fund body has made some changes in its rules to allow members a better experience to avail of their savings in a systematic manner. The EPFO will allow the members to withdraw the partial amount of their savings for various reasons, from marriage, purchase or construction of a house to their children's education.
Following are some of the significant changes announced for the convenience of the members.
- EPFO member can withdraw as much as 90 percent of his money as partial withdrawal before retirement if he or she has completed 54 years of age and within one year of retirement or superannuation, whichever is later.
- The members will be allowed to withdraw up to 75 percent amount of EPF corpus after being unemployed for more than a month and will be allowed to withdraw the remaining 25 percent amount if he/she remains unemployed for more than two months.
- EPFO allows its members to withdraw 24 months’ basic wages and DA for the construction/ purchase of houses. An EPFO member can withdraw up to 36 month’s basic wage and DA or total of employee and employer share with interest or total outstanding principal and interest, whichever is least for repayment of loans in exceptional cases. A declaration from the employee is required, and the member should also be associated with the retirement fund body for more than 5 Years.
- Members can now withdraw 50 percent of their share with interest for the purposes of marriages in the family. In this case, the person should be a member of the EPFO for at least seven years. In this case, the members will have to submit the certificates regarding the course of study to make the transactions. For any event related purpose in the family, if the amount is getting withdrawn, the members will have to apply in advance and is required to fill the form 31.
The newly introduced rules are expected to bring relief for the members who can now enjoy their hard-earned savings according to their needs and priorities in life.