Do you know that the Employees Provident Fund Organization (EPFO) is concerned about the problem of youth withdrawing money from PF? EPFO is working on new strategies to deal with this problem. Currently, 8.25% interest is being received on the amount deposited in EPF. Officials want people not to withdraw their PF money even if they change jobs. They believe that PF money will be very useful after retirement. Also, it will be useful for things like building a house or marriage of children. EPFO is trying to encourage the youth to save for retirement. The government wants the youth to save for their future.
According to the rules, there is a facility to withdraw money from PF on losing the job. But, EPFO wants people to save this money for retirement. From April 1, 2024, to March 7, 2025, EPFO received 71 lakh PF settlement claims. Out of these, 50 lakh claims were settled. Of these, Rs 55,133.52 crore was given. In the last 10 years, the number of EPFO member accounts has increased from 11.7 crores to 32.5 crores.
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Promoting the habit of retirement savings
Officials say that many times people withdraw their entire PF money when they change jobs. They say that PF money is very important for retirement.
According to sources, EPFO is considering strategies to promote the habit of saving for retirement among the youth. Currently, 8.25% interest is being given on the amount deposited in EPF. The money deposited in PF increases a lot due to the power of compound interest.
What do EPFO rules say
According to the current EPF rules, members can withdraw the entire PF money after retirement. On leaving the job, 75% is allowed to be withdrawn after one month and 100% after two months. The purpose of the rule is that people can get financial assistance when they leave their jobs. But, often people wait till two months after leaving the job and then withdraw all their money.
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