Latest EPF withdrawal Rules

May 07, 2016, by admin

The latest news about EPF is the recently changed amendments in EPF scheme. The amendments are related to ‘early withdrawals ‘from PF & provisions related to PF withdrawals. This has been in effect from 10 February, 2016.

I would like to highlight the points in amendments.

• The retirement age has been increased from 55 to 58 years.
•  The EPF member cannot make full withdrawal on resignation rather the person can withdraw his / her contribution and interest portion. This particular amendment has foregone for women employees only in case they leave employment for the purposes like marriage, pregnancy  or childbirth.
• Earlier, if a person has attained the age of 54 years he /she can avail 90% EPF balance. The age has now been increased to 57 years.
• If a person will be considered as EPF member even if the person relieved from employment before the retirement age.
• This rule will not be applicable on the international workers who are working in countries with which India has signed SSA ( social security agreement).

The positive aspect of this particular amendment is it long term studious and it is highly advantageous for private sector employees and those who don’t get any pension. It literally fortifies the financial security after retirement. In recent time, switching jobs has become very common and whenever they switch job, people withdraw their PF amount. Hence Employees provident fund organization has come out with most uncompromising rule to make EPF more constructive.