New Delhi [India], October 16 : Union Minister of Youth Affairs and Sports, and Labour and Employment, Mansukh Mandaviya, on Wednesday highlighted the substantial relaxation in the Employees' Provident Fund Organisation (EPFO) rules, making EPF withdrawal simpler for employees.
According to the new rules, employees who lose their jobs can now withdraw 75% of their EPF amount immediately. The remaining 25% can be withdrawn after one year, ensuring that the employee's 10-year service tenure remains intact.
Mandaviya said, "...EPF withdrawal has been made simpler now...If someone loses their job, then 75% of the amount can be withdrawn immediately, and after one year, the facility to withdraw the entire amount will be available. The idea behind retaining 25% amount for a year is that the 10-year service tenure is not disrupted. With these new reforms, the employee's service continuity will be maintained, and receiving a pension will ensure their social and economic security."
Additionally, the government has extended the period for withdrawing funds after job loss from two months to one year, allowing members more time to find new employment and maintain job continuity.
In another significant move, establishments that have not previously contributed to EPFO can now enrol with a nominal penalty, encouraging more employees to benefit from social security.
Furthermore, to assist elderly and remote EPFO beneficiaries, an MoU has been established with postal services to facilitate the authentication and issuance of life certificates at their homes. This ensures that beneficiaries can receive their benefits without needing to visit EPFO offices.
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