New PF Rules: Good news for employees! The Employees’ Provident Fund Organisation (EPFO) has recently taken a new initiative that will further simplify the process of withdrawing Provident Fund (PF) money after retirement. Often, employees couldn’t withdraw their PF account money due to various administrative complications. To solve this problem, the EPFO has stated that from now on, a PF subscriber’s money cannot be withheld for any reason.
What is the new rule?
According to the new EPFO rule, even if an employer has not deposited their share of money into a subscriber’s PF account or if there are other issues, the employee will still be paid a partial amount at the time of retirement. The remaining amount will be settled later after calculations. This move is expected to benefit crores of employees.
The PF authority itself has admitted that many employers do not deposit their share of the money regularly, or they deposit an amount less than what is specified. Furthermore, when an employee changes jobs, the PF account from the old company is often not transferred. All these reasons create problems in getting PF money after retirement. In many cases, the PF authority would even refuse to pay.
To relieve subscribers from this problem, the EPFO has sent special instructions to all its regional offices. It has been clearly stated that a subscriber’s entire amount cannot be withheld under any circumstances. The money deposited in the account must be given to the subscriber, and the remaining amount will be paid later.
Self-Certification Facility
For the convenience of subscribers, the PF authority has introduced another new rule. From now on, the concerned subscriber can submit the ‘Transfer Certificate’ themselves. This certificate is required to maintain the continuity of the PF when changing jobs. It contains all the information, including the PF balance with interest and the amount deposited in the EPS or pension account.
Previously, the old employer had to send this certificate to the PF authority, which often created complications. The new rule states that the PF subscriber can now download the ‘Transfer Certificate’ themselves from their ‘Member Portal’ online. It is believed that this administrative reform will significantly reduce complexities related to claims.
What Should You Do?
- Stay Active: Keep a regular check on your PF account. Check your balance and deposit amounts through the online portal.
- Update Information: If you change jobs, transfer your PF account as soon as possible.
- Know the New Rules: Stay informed about the new EPFO rules so that you can exercise your rights when needed.
These new initiatives will certainly help in enhancing the financial security of employees after retirement and will reduce their hassles.
