look news india
If you are also thinking of withdrawing money from PF, then there is a good news for you. The government has increased the limit of the amount that can be withdrawn for personal needs. Union Labor Minister Mansukh Mandaviya has said that Employees' Provident Fund Organization (EPFO) subscribers can now withdraw up to Rs 1 lakh at a time from their accounts for personal needs, which is more than the earlier limit of Rs 50,000.
Changes in the functioning of EPFO implemented
According to the minister, the labour ministry has implemented several changes in the functioning of the EPFO, including a new digital framework to enhance flexibility and accountability, minimise customer inconvenience, and updated guidelines. Additionally, new employees who have not yet completed six months in their current job are now eligible to withdraw funds, a step up from the earlier limit.
What did Mansukh Mandaviya say?
Union Labor Minister Mansukh Mandaviya said that people often resort to their EPFO savings to meet expenses like marriage and medical treatment etc. We have increased the withdrawal limit to Rs 1 lakh at a time. The new withdrawal limit was increased because the previous limit had become obsolete due to changes in cost and the amount of Rs 50 thousand was falling short as per the needs of the people.
PF provides retirement income to employees
Provident funds provide retirement income to over 10 million employees in the organised sector and are often the primary source of lifetime savings for many workers. The EPFO's savings interest rate, fixed at 8.25% for FY14, is a key benchmark closely watched by the salaried middle class.