The Employees’ Provident Fund Organisation (EPFO) has announced significant changes to the withdrawal rules from the Provident Fund (PF) under the PM Fund, aimed at providing increased financial relief to its members during medical emergencies.
Key Changes in Withdrawal Rules
- Increased Withdrawal Limit: EPFO members can now withdraw up to INR 1 lakh from their PF accounts for medical emergencies, a substantial increase from the previous limit of INR 50,000.
- Implementation Date: These changes were implemented in the application software on April 10, 2024, and are effective immediately.
- Circular Issued: EPFO has released a circular announcing the increase, detailing the changes to help members understand the new benefits.
Details on Eligibility and Application Process
Paragraph 68-J
Under Paragraph 68-J of the EPF scheme, members can apply for an advance for medical expenses if:
- They or their dependents are hospitalized for a month or more.
- They undergo major surgery.
- They are suffering from severe diseases such as TB or leprosy.
Simplified Application Process
- No Documentation Required: Members no longer need to submit any proforma, medical certificates, or any other documents to claim an advance.
- Quick Disbursement: If the application is submitted on a working day, the funds are transferred to the member’s account the very next day.
- Direct Hospital Transfer: Members also have the option to transfer funds directly to the hospital’s account.
Additional Withdrawal Reasons
Members can also use Form 31 for withdrawals from the PM fund for various other needs such as:
- Marriage expenses.
- Loan repayments.
- Purchasing a home, land, or flat.
- Children’s education and marriage.