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    Pre-Retirement EPF Withdrawal Now Capped At 75% Of Deposits

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    As the purpose of EPF account was getting derailed due to the relaxation to withdraw 100% of the balance amount on being jobless. Now a new notification, which makes restriction on EPF withdrawal to 75% in case of a subscriber who is still not retired or attained 60 years of age. And it was possible for an individual who remained without job for continuous 2 months.

    Pre-Retirement EPF Withdrawal Now Capped At 75% Of Deposits
     

    But in a notification dated December 6, Employees' Provident Funds (Amendment) Scheme, 2018 said, "The commissioner or, where so authorised by the commissioner, any other officer subordinate to him, may permit a member, on ceasing to be an employee in any factory to establishment to which the Act applies, a non-refundable advance upto 75% of amount standing to his credit in the fund, if he has been employed in any factory or other establishment for a continuos period of not less than one month".

    Employees' Provident Fund Organisation (EPFO) manages social security funds of workers in the organised and semi- organised sectors. The retirement fund has more than six crore active members.

    While an employee, earning upto 15,000 a month, contributes 12% of the basic pay to EPF, the employer contributes 8.33% towards employees' pension scheme and 3.67% to the EPF. Interestingly, the employer also pay 0.5% towards Employees' Deposit-linked Insurance (EDLI) Scheme, 0.65% as EPF A/Cs and 0.01% as EDLI handling fee, taking the total contribution to 13.61%.

    Goodreturns.in

    Read more about: epf pf epfo
    Story first published: Wednesday, December 19, 2018, 12:19 [IST]
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