If you are also thinking of withdrawing money from PF, then there is good news for you. The government has increased the limit of the amount that can be withdrawn for personal needs. Union Labour Minister Mansukh Mandaviya has said that Employees Provident Fund Organisation (EPFO) customers 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.
The government took these great steps
The labour ministry has implemented several changes in EPFO ​​operations, including a new digital framework and updated guidelines to increase flexibility and accountability and reduce inconvenience for subscribers, according to the minister. Also, new employees who have not yet completed six months in their current job are now eligible to withdraw funds, which is different from the earlier limit.
What did the government say?
Mandaviya said people often draw on 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 as the earlier limit had become obsolete due to changes in expenses, and the amount of Rs 50,000 was insufficient to meet the needs of the people.
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Provident funds provide retirement income to over 10 million employees in the organised sector and are often the primary source of lifelong savings for many workers. The EPFO ​​savings rate, which has been fixed at 8.25% for FY24, is a key benchmark closely monitored by the salaried middle class.
Let us tell you that there are 17 such companies whose total number of employees is 100,000 and fund of Rs 1,000 crore. If they want to shift to EPFO ​​instead of their own funds, they will be allowed to do so. Government PF savings give better and stable returns.
