Full EPF Accumulation Can't Be Withdrawn (Limit on Early EPF Withdrawals)
(a) Existing Rule: EPF members can withdraw EPF accumulation after 60 days of cessation of employment (consisting of Employee and Employer Share with interest).
(b) New Rule: EPF Accumulation can't be withdrawn before attaining the age of retirement. The maximum withdrawal on cessation of employment can't exceed an amount aggregating the employee's own contribution and interest accrued thereon. One can withdraw their own contributions plus the interest portion only. The employer portion can only be withdrawn after attaining the retirement age, i.e., 58 years.
Continuity of Own EPF Membership
(a) Existing Rule: If an employee withdraws full EPF accumulation after resigning from the service, his/her membership is deemed to be terminated, meaning he/she is not a member of the EPF Scheme after the full withdrawal of accumulation.
(b) New Rule: An employee can only withdraw his own share with interest after resignation, and the employer share can only be withdrawn after attaining the age of retirement, which means that your membership should be continued.
Retirement Age
(a) Existing Rule: The retirement age is considered as 55 years.
(b) New Rule: The age of retirement has now been increased from 55 years to 58 years.
EPF Withdrawal Provision
(a) Existing Rule: As cited above, the retirement age has been increased from 55 years to 58 years. The option of full withdrawal of EPF accumulation can't be allowed; only the employee share plus interest rate, only 90% of EPF balance was allowed.
(b) New Rule: One can only avail this option after attaining the age of 57 years, which has now been increased.
Employee Education During Separation
(a) Only employee contribution can be withdrawn along with interest due after 2 months of separation from service and not joining any other organization covered under EPFO.
(b) Employer contribution will continue to accrue and can only be withdrawn after attaining 58 years of age.
(c) Basically, EPF savings are meant for the provision of retirement. So EPFO has brought such changes for the betterment of the future of employees.
Gazette Notification enclosed for reference.
Thanks & Regards,
Sumit Kumar Saxena
(a) Existing Rule: EPF members can withdraw EPF accumulation after 60 days of cessation of employment (consisting of Employee and Employer Share with interest).
(b) New Rule: EPF Accumulation can't be withdrawn before attaining the age of retirement. The maximum withdrawal on cessation of employment can't exceed an amount aggregating the employee's own contribution and interest accrued thereon. One can withdraw their own contributions plus the interest portion only. The employer portion can only be withdrawn after attaining the retirement age, i.e., 58 years.
Continuity of Own EPF Membership
(a) Existing Rule: If an employee withdraws full EPF accumulation after resigning from the service, his/her membership is deemed to be terminated, meaning he/she is not a member of the EPF Scheme after the full withdrawal of accumulation.
(b) New Rule: An employee can only withdraw his own share with interest after resignation, and the employer share can only be withdrawn after attaining the age of retirement, which means that your membership should be continued.
Retirement Age
(a) Existing Rule: The retirement age is considered as 55 years.
(b) New Rule: The age of retirement has now been increased from 55 years to 58 years.
EPF Withdrawal Provision
(a) Existing Rule: As cited above, the retirement age has been increased from 55 years to 58 years. The option of full withdrawal of EPF accumulation can't be allowed; only the employee share plus interest rate, only 90% of EPF balance was allowed.
(b) New Rule: One can only avail this option after attaining the age of 57 years, which has now been increased.
Employee Education During Separation
(a) Only employee contribution can be withdrawn along with interest due after 2 months of separation from service and not joining any other organization covered under EPFO.
(b) Employer contribution will continue to accrue and can only be withdrawn after attaining 58 years of age.
(c) Basically, EPF savings are meant for the provision of retirement. So EPFO has brought such changes for the betterment of the future of employees.
Gazette Notification enclosed for reference.
Thanks & Regards,
Sumit Kumar Saxena
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