EPFO doubles one-time PF withdrawal limit to ₹1 lakh
Union Labour Minister Mansukh Mandaviya has announced a significant increase in the withdrawal limit for Employees's Provident Fund Organisation (EPFO) subscribers. The new cap allows individuals to withdraw up to ₹1 lakh at once from their accounts for personal financial needs, doubling the previous limit of ₹50,000. This change is part of a series of modifications aimed at enhancing flexibility and responsiveness in the EPFO's operations.
New employees now eligible for fund withdrawal
In addition to the increased withdrawal limit, the Labour Ministry has also revised its policy regarding new employees. Previously, individuals were required to complete six months in their current job before becoming eligible for fund withdrawal. However, under the new guidelines, this restriction has been lifted. Mandaviya stated that these changes are designed to accommodate evolving consumption expenditures and minimize inconveniences for subscribers.
EPFO opens doors to private retirement schemes
The government has also extended an invitation to organizations operating outside the EPFO, allowing them to transition into the state-run retirement fund manager. This move primarily affects businesses that have established their own private retirement schemes due to an exemption granted before the EPFO's inception in 1954. Mandaviya highlighted that there are 17 such companies with a total workforce of 100,000 and a corpus of ₹1,000 crore.
Government to revise income threshold for PF contributions
The Labour Ministry is also considering revising the income threshold for mandatory provident fund contributions, currently set at ₹15,000 for salaried employees. The income limit for Employees's State Insurance (ESI), presently fixed at ₹21,000, is also expected to be increased. Mandaviya stated that employees earning over ₹15,000 will have the flexibility to decide how much of their income they want to allocate toward retirement benefits and pension.
