Employees Providend Fund Organization (EPFO) has given great relief to PF employees. EPFO has increased the limit of Auto Settlement from 1 lakh to 5 lakh rupees. EPFO members can now withdraw up to Rs 5 lakh through the Advance Claim in any emergency, that is, there will be no need to manually check for withdrawing such a huge amount.
This change, announced by Union Labor and Employment Minister Mansukh Mandavia, is going to provide uninterrupted and timely assistance to workers requiring immediate financial assistance. If someone needs money for medical expenses or home renewal, then it can now be withdrawn from Rs 1 to 5 lakhs immediately in an automatic way. Mandavia said that this decision has been taken for the purpose of uninterrupted and timely assistance to the workers. This will make it easier for members to get money in time of need.
What was the rule earlier?
Till now, under the advance claim by EPFO, the amount of up to Rs 1 lakh was extracted through auto settlement. That is, if someone used to claim an amount of Rs 1 lakh or less, then this amount was automatically approved under the advance claim and was sent to the account after a few days, but if there is an amount of more than 1 lakh rupees, then it required a manual check, which made it very long. However, now this limit has been increased to Rs 5 lakh.
Why did this change happen?
In the time of Covid-19, the government had started the facility of auto settlement under PF, but now it is being gradually changed and it is being made permanent facility. The government has given great relief to the people under this, which aims to provide a big amount to the people as an emergency in any emergency, so that they do not face financial troubles.
What will be the benefit?
With this major decision of the government, PF employees can claim a big PF amount online without going to PF office. Also, they will not need to wait for a long time as an advance claim. At home, the money will be transformed by the time in their account, which they can use for their important works.