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The apex body of EPFO met last month to change the rule for PF withdrawal
The apex body of EPFO met last month to change the rule for PF withdrawal

75% of EPF balance can be withdrawn after 1 month of unemployment

The requirement of the two-month waiting period for withdrawing full PF corpus will not apply in cases of female members resigning from the services of the establishment for the purpose of getting married

An employee, who is not in employment for a month, may be allowed to avail 75% per cent of the total fund standing to his credit, Labour Minister Santosh Gangwar said today. Gangwar said in Lok Sabha that the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation, in its 222nd meeting on June 26, had considered a proposal for insertion of paragraph 68HH in EPF Scheme 1952. This will enable a member of EPF, who is no longer in employment for a continuous period of one month, to avail 75% of the total fund standing to his or her credit, he said.

The minister said the Employees’ Provident Funds Scheme, 1952, enables a member to withdraw the full amount standing to his credit in the fund on ceasing to be an employee in an establishment for a continuous period of two months immediately preceding the date on which he makes an application for withdrawal. The requirement of the two-month waiting period will not, however, apply in cases of female members resigning from the services of the establishment for the purpose of getting married, he said.

Retirement fund body EPFO has invested 48,946 crore in exchange traded funds (ETFs) till June 30, 2018, parliament was informed earlier. The Employees’ Provident Fund Organisation (EPFO) is investing in ETFs based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 indices. The body does not invest in shares and equities of individual companies.

“The total amount invested by EPFO in ETFs as on June, 2018 is Rs. 48,946 crore," Labour Minister Santosh Gangwar had earlier said in written reply in the Rajya Sabha. The EPFO’s apex decision making body the Central Board of Trustees (CBT) at its 207th meeting held on March 31, 2015 decided to invest only in ETFs in the category of equity and related investments.

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