New Delhi: The Central Government is considering making EPFO (Employees’ Provident Fund Organisation) withdrawal rules simpler. According to a report by Moneycontrol, the aim is to help members manage their retirement funds more flexibly based on their financial needs.
Two senior government officials shared that the government plans to make it easier to withdraw funds for reasons like buying a house, marriage, or education. Though no fixed timeline has been given, these changes could be implemented within a year.
What Are the Current EPFO Rules?
At present, EPFO members can withdraw their full fund only at the age of 58, or if they are unemployed for more than two months. For other needs, there are several strict conditions:
For marriage: Only up to 50 percent of employee contribution + interest can be withdrawn. The member must have completed at least 7 years of service.
For home purchase or construction: Up to 90 percent can be withdrawn. The property must be in the name of the member, their spouse, or jointly. Also, 3 years of service is required.
What Is Likely to Change?
The government may soon allow EPFO members to withdraw full or partial savings every 10 years. This would give members more control over their own money and help them use it when really needed.
Experts Welcome the Move
Finance and legal experts believe that relaxing these rules will help low and middle-income workers, as they can meet financial needs without taking loans.
Right now, the withdrawal process involves many restrictions like minimum years of service, withdrawal limits, frequency rules, and too much paperwork.
Need for a Balanced Approach
Experts also said that while making withdrawals easier is a good step, it is important to protect the retirement purpose of EPF. A balanced policy should allow members to access their funds easily without harming their retirement savings.
