Change In Rules Of EPF Withdrawal; Check Details Here
Employees’ Provident Fund recently changed some of their rules related to provident fund claims. There are around nearly six crore subscribers of Employees’ Provident Fund and the amount of money managed is around Rs. 10 lakh crores. Before the rules were changed, a person had to apply online for the withdrawal of the amount above 10 lakh rupees. But now, the offline claims for the withdrawal of money will also be taken into account.
One of the retirement fund body member stated that there were various concerns raised by the members of EPFO about the withdrawal money but now offline claims will also be accepted in all cases. The claims that will be received online from claimants will be further sent to employers for further verification after which the claim will be settled.
The members of EFPO with a valid Aadhaar Number and bank details along with UAN (Universal Account Number) are eligible for submitting their claims online. If a person wants to apply for their EFP claim online then they need to follow some steps.
The subscribers have to first log into EPFO’s member interface using UAN credentials then the subscriber has to select the relevant claim after clicking on ‘Online Services’ tab.
For depositing, the subscriber needs to select Form 19. If a person wants to withdraw then he/she has to select the Form 31 and at last, the subscribers need to select Form 10-C for the benefits related to the pension withdrawal. The subscribers can also check their claim requests online by clicking on ‘Online Services’ tab and then on ‘Track Claim Status’.
Apart from this benefit given to the subscribers, another decision has been taken is to cut down the administrative charges, which eventually will save Rs. 900 crore annually and will benefit around 5 lakh employers.
The Retirement fund body EPFO took this decision in order to expand the business and also for the high recovery of such fees. Although back in February 2018, they were planning to cut the administrative charges from 0.65% to 0.50% of total wage paid to an employer.
The provident fund commissioner V P Joy stated that the labour ministry has been notified of the change in administrative charges and the reduced administrative charges will be effective from June 1, 2018. The EPFO department will be not be affected by the cut in administrative charges as the number of subscribers will also increase which eventually will lead to an increase in the contribution base. Till now, the costs involved in EFPO were so prohibitive that employers avoided the EPFO route.