Employees’ Provident Fund Organization (EPFO) has advised members not to withdraw EPF funds. EPFO said that due to any unnecessary reasons, withdrawals are availed by members will lose on Social Security benefits. This benefit is available only when regularity of account is maintained.
EPFO Advises members not to take full withdrawing provident fund
All members not to be attract to make final withdrawals from your Provident Fund balances unless and until it is really needed. Government primary objective is you must continue to live with fund until you retire from service. At the same time, organization has also said that purpose of amount of PF is for Social Security Benefit. Members should not analysis it like any other account.
However, if you withdraw full amount for unimportant reasons, you are not only losing your PF money but also lose on old age security and pension. Employees Provident Fund Organisation (EPFO) said that PF money meant for social security benefit and you should not treat like bank account. EPFO’s authorities highlight many plans
EPFO’s introduced new facilities and schemes
EPFO’s aim is to make people aware about all plans, especially in new facilities and schemes such as Pradhan Mantri Rozgar Yojana for employer and housing scheme for employees, which make you to avail loan facility in an easy manner. It is very important for employers to know benefits that government has set pension part under Pradhan Mantri Rozgar Yojana.
However, new employee also make under Pradhan Mantri Rozgar Yojana through employer which cost is cheap for employer. Here, what is happening is 12 per cent if you contribute and 12 per cent which is flowing into your PF account, of that 8.33 per cent which belongs to employer is returned by government to employer.
These are schemes which government wants to put forward and make the people aware to know as employer as well as employee. Here, pension is calculated is unique to every individual depending on factors like length of service, contributions made etc. Read How to withdraw EPF and EPS online? Read Government reduced PF contribution to 8 per cent for New Women Employees
Purpose of PF to provide social security benefits
EPFO authority wants to tell purpose for all members not to withdraw from PF account without any need. Keep this account up to your retirement. This is EPFO main purpose. Government want to discourage those people who get withdraw PF amount due to small reasons. With this, they are not only losing PF amount but also for economic reasons and pension for old age.
Here’s clearance of withdrawal means final payment. For example, if you quit job today and there is no work to do in future. In such situation, you want money in your account to be given. On other hand, partial withdrawal on other side is called Advance and you do it with your account only. Let you know that this does not make any difference to your membership. Also read EPFO members will get equity investment benefit from March 2018