The Employees’ Pension Fund Organisation has decided to allow its members to withdraw 75% of their Provident Fund after a month of unemployment.
After two months without a job, the members will be allowed to withdraw the remaining 25% of their funds and fully settle the account, the retirement fund body announced on Tuesday.
“We have decided to amend the scheme to allow members to take advance from its account on one month of unemployment,” Labour Minister Santosh Kumar Gangwar said, PTI reported. “He can withdraw 75% of its funds as advance from its account after one month of unemployment and keep its account with the EPFO.” Gangwar was speaking to reporters in New Delhi after the 22nd meeting of the EPFO’s Central Board of Trustees.
According to earlier rules, a member could withdraw their Provident Fund as well as close the account only after two months of unemployment.
The new provision is expected to encourage members of the organisation to keep their account active, so that they can use it again after getting re-employed, Gangwar said.