The Employees Provident Fund Organisation (EPFO) subscribers are now allowed to withdraw up to ₹1 lakh at a time for personal financial requirements, instead of the earlier limit of ₹50,000, as stated by Union Labour Minister Mansukh Mandaviya, as per sources.
According to the minister, the labor ministry has made several adjustments to the EPFO's procedures, such as a updated guidelines and a new digital platform, in order to improve flexibility and responsiveness and reduce inconvenience for subscribers. Furthermore, employees who have worked less than six months in their current position can now withdraw funds, which is different from the previous rule.
“People often turn to their EPFO savings to meet expenses such as weddings and medical treatment etc. We have enhanced the withdrawal limit to ₹1 lakh at a time,” Mandaviya said on the occasion of the government’s 100 days in office.
The prior withdrawal cap was raised as it had become obsolete due to evolving consumption expenses. Provident funds offer retirement income to over 10 million workers in the formal sector and often serve as the main source of long-term savings for many employees. The salaried middle class closely watches the EPFO's savings interest rate, which is fixed at 8.25% for FY24, as a significant benchmark.
We use cookies to ensure you get the best experience on our website. Read more...
