EPFO Update: The Employees’ Provident Fund Organisation (EPFO) frequently makes significant changes to its rules for the benefit of its members. A portion of an employee’s salary is deposited into their PF account every month, which is a crucial saving for their future. It is very important to be aware of these rule changes to avoid any future difficulties. Recently, EPFO has introduced some major changes that will directly benefit employees.
The government is also considering an increase in the minimum pension amount soon. Besides this, steps have been taken to reduce the age limit for pension withdrawals and to simplify the process of transferring PF funds after changing jobs. Let’s delve into the major changes made by the EPFO.
At what age can you withdraw your pension?
According to the new EPFO rules, members can now withdraw their pension money upon reaching the age of 50. Previously, this age limit was 58 years. This means the EPFO has significantly reduced the age limit by 8 years. This is a major move that will help many employees meet their needs earlier.
Simplification of Pension Claim Rules
Under the old rules, the process of claiming a pension was quite complicated and time-consuming. It used to take up to a month to get the claim approved. However, the EPFO has now decided to digitise most of its services. As a result, the entire process, from filling out the pension claim form to its approval, can be done online. Once this rule is fully implemented, the hassles for employees will be significantly reduced, and they can complete the process from the comfort of their homes.
Convenience in PF Transfer When Changing Jobs
Previously, transferring money from an old PF account to a new one after changing jobs was a cumbersome task. It required frequent visits to the office. But under the new system, this process has been made completely automatic. Now, when you change your job, the money in your old PF account will be automatically transferred to the new one. This will save both time and effort for employees.
Increase in the Maximum Pension Limit
The EPFO has also increased the maximum pension limit. Earlier, this limit was ₹7,500, which has now been raised to ₹15,000. This means the maximum pension amount has been doubled. Therefore, employees with higher salaries can receive a maximum pension benefit of up to ₹15,000 after retirement. It should be noted that while many of these changes are old, it is important for pensioners to be aware of them.
