Withdrawing your PF (Provident Fund) is now easier: Learn when and how many times you can withdraw the entire amount..

The Provident Fund (PF) is the biggest savings for every working person, but often withdrawing it when needed is the most difficult task. Sometimes the rules were incomprehensible, and sometimes a small mistake would lead to the claim being rejected. To address this problem, the EPFO ​​has significantly simplified the rules. If you, too, are tired of running around offices to withdraw your hard-earned money from your Provident Fund (PF), then there is great news for you.

Facility to withdraw money after just 12 months of service
The EPFO ​​has changed its rules, making PF withdrawal as easy as withdrawing money from a bank. Now you don't need to wait for years; you can withdraw 100% of your money in case of emergency after just 12 months of service.

But will frequent withdrawals negatively impact your old-age pension? And how many times can you withdraw money in a year? Let's find out the answers to all these questions and the complete details of the new rules...

What were the difficulties before, and what is the relief now?
In the old system, there were about 13 different rules for PF withdrawal based on various reasons. For some purposes, 2 years of service were required, while for others, one had to wait for 5 or 7 years. This confused people, and they didn't get their money on time. Now, the EPFO ​​has combined all these rules.

The biggest relief is that now, for most needs, just 12 months of service is sufficient. This means that you can withdraw money from your PF after working for just one year.

When can you withdraw 100% of the money?
According to the new rules, up to 75 percent of the total PF balance can be easily withdrawn. However, on some special occasions, you can also withdraw 100 percent, or your entire amount. Let's find out when and how many times you can avail yourself of this facility:

For illness: If you or a family member needs medical treatment, you can withdraw money up to 3 times a year. Children's education: For your own or your children's higher education, you can withdraw money up to 10 times during your entire working life. Marriage: For your own, your siblings', or your children's marriage, you can withdraw money up to 5 times. House and land: The facility to withdraw money up to 5 times is also available for buying or building a house or repaying a home loan. Without stating a reason, In some special circumstances, you can withdraw money twice a year without giving any reason.

When can you withdraw the remaining 25% of your PF money?
According to EPFO, many people withdraw all their money repeatedly, and nothing is left for them at the time of retirement.

According to the data, 75 percent of people don't even have Rs. 50,000 saved for the future. Therefore, a rule has been made that in case of job loss, you can immediately withdraw 75 percent of the money, but leave the remaining 25 percent in the account so that your retirement is secure.
If you remain unemployed even after one year of losing your job, you can withdraw the remaining 25 percent as well.

Will this affect your pension?
These new rules for PF withdrawal will not affect your pension. If your job tenure is less than 10 years, you can also withdraw your pension money. But if you have completed 10 years of service, it is wise not to withdraw the pension money, as you will receive a fixed pension every month after retirement.

The big advantage of leaving money in PF
It is worth noting that PF currently offers an excellent interest rate of around 8.25 percent. If you don't withdraw the money, due to compounding, your small amount can become very large in a few years. Therefore, only claim the money when it is absolutely necessary.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.