This special report unpacks the major changes to the Employees' Provident Fund Organisation (EPFO) withdrawal rules, featuring insights from financial expert Shruthi Mahajan. When asked about the changes, Mahajan stated, 'there are new regulations that are very, very pro-employees only.' The discussion clarifies the significant confusion around these new policies, explaining that while 100% withdrawal is now permitted under certain conditions, there are nuances. For instance, in case of unemployment, a member can withdraw 75% of their PF balance after one month of joblessness, but a 12-month wait is required for a final settlement. The segment also details the simplified, online process for advance withdrawals for essential needs like medical emergencies, education, and marriage, and the updated procedures for nominees to claim funds.
00:00All right, let's move on to the other big story that has got everybody talking.
00:03The Employees Provident Fund Organization, the EPFO, has announced a major change.
00:08Members can now withdraw up to 100% of their provident fund balance,
00:12including both employee and employer contribution.
00:15Now, this is a significant relief for many who depend on these savings during tough times.
00:20But it's not as straightforward as it seems.
00:23And there's a lot of confusion online around the new rules,
00:27many unanswered questions as well.
00:30So today on the program, we put out those big questions
00:32so you can sort of really understand what this means for you.
00:37So on your screen right now, take a quick, you know, screenshot of those changes as well.
00:43What used to be the case earlier versus what it is now.
00:46But some of the big questions we are asking, let's take them straight to our guest.
00:50Joining us now is Shithij Mahajan, CEO and managing partner at Complete Circle Capital.
00:55Hi, Shithij. Thank you so much for giving us your time.
00:57So much confusion over what really is going on.
01:00But I think largely the questions are around whether or not in case of loss of job,
01:08one can withdraw the full money or does one have to wait?
01:12That's my first question really to you.
01:14In case of employment, can I immediately, unemployment, can I immediately withdraw all of my money?
01:20Well, hi. Thank you for having me here.
01:23And obviously, the new regulations are very, very pro-employees only.
01:28In case of unemployment, obviously, there's a window of 12 months that you can withdraw the entire funds.
01:32But you can withdraw any fund immediately after, you know, you are out of job.
01:39And there are ways and means through which you can withdraw.
01:41There are various categories.
01:43They have mentioned that.
01:45And those categories you can employ.
01:46And it has become much more easy.
01:48You can do it online also.
01:50So I think the new rules actually make it much easy that you can withdraw the fund vis-a-vis what was required earlier.
01:57Okay, so you're saying I can't, in case of unemployment, I cannot withdraw the full amount, but I can immediately now withdraw part of the amount.
02:04How much is that?
02:05Up to 75%.
02:07Up to 75%.
02:09The other big question is on pension.
02:12Could you sort that out as well?
02:13In case of pensioners, there's a time window until when they cannot withdraw their money?
02:19So, it's up to 12 months they can't withdraw, but after that they can do that.
02:23For pensionersтАж
02:24Up to 12 months.
02:25Yes.
02:27Uniform rules is up to 12 months.
02:28But yes, let's say if someone is not having a pension, but EPFO is like an employee contribution and a company contribution, both sides.
02:36This is for private job employees also.
02:38But if you're out of job and there is a purpose which is lying, so now it's much more easy that you can take out the money.
02:45And there are reasons, there are online things through which you can withdraw without submitting much of the paperwork also.
02:51Okay, another question that's been on the line very quickly, if you could answer that as well.
02:56Can a nominee or a kin withdraw PF after an employee's sudden death?
03:01And the other one is really of these extraordinary special circumstances segment that has been added.
03:05What exactly are these special circumstances under which amount can be withdrawn?
03:10Okay, so, the procedure of nominee or kin is that, you know, if the will is there, will will supersede everything.
03:17Let's say, if anyone who's in caution and is not present now, then will will supersede everything.
03:24If not, will is not there, then let's say, whoever is there in the family, let's say, the wife is there and two kids are there, then they have to, it has to be divided among three of them.
03:35So, there's a process and there are various people on which they have to go through, but yes, that's their right to take that money.
03:41And what are those extraordinary circumstances?
03:45Extraordinary, okay, basic, just to explain.
03:48Two circumstances they've spoken about, one is education and marriage, where they have given a lot of windows now.
03:54Ten for education, five for marriage.
03:56But extraordinary is like some emergency came, some medical emergency is there.
03:59Some losses are there in the family, some, some, some, let's say, loss of family, some injuries are there, accidents are there.
04:10So, all these are there and they have made it very simple now.
04:13I think the blueprint is about to come out and they'll make it very simple that you don't have to go get into a paperwork, do it online, submit proofs and it's been, it will be nice.
04:21Got it.
04:22All right.
04:22Thank you so much.
04:2313 categories now cut down to just three.
04:25I think that's a big one, but a lot of confusion.
04:27Just do check with your office HR accounting and also your CA for more details on it.
Be the first to comment