“We have decided to amend the scheme to allow members to take advance from their account on one month of unemployment. They can withdraw 75 per cent of the funds as an advance from their account after one month of unemployment and keep the account with the EPFO,” Labour Minister Santosh Kumar Gangwar, who is also the Chairman of EPFO’s Central Board of Trustees, told reporters after the trustees’ meet.
Gangwar was of the view that with this step, the members will be able to keep their EPFO account which they can resume after getting employed again.
However, according to the scheme, a member can withdraw the entire amount standing to the credit of the fund under certain circumstances.
Subscribers can make a complete or partial withdrawal under the following circumstances:
1- An EPFO member can withdraw the entire amount from the funds after attaining the age of 55 years.
2- A member of the retirement fund body can make a withdrawal if s/he needs to fund their house construction or pay their home loan.
3- An EPFO member can withdraw the fund to cover medical expenses.
4- An EPFO member can withdraw to cover wedding or education expenses.
5- If they have been unemployed for a duration of more than 60 days or two months then also an EPFO member can withdraw the fund.
Source: Financial Express