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New Delhi41 min ago
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The Employees’ Provident Fund Organization (EPFO) has once again started the Kovid-19 Advance Scheme. Under this, EPFO subscribers can withdraw money equal to 3 months’ salary from their provident fund. You will not have to return this money. However, the benefit of this scheme should be taken only in case of extreme need. Because withdrawing money from PF fund can cause big loss to your retirement fund.
What is scheme?
Giving relief to EPF account holders, EPFO has given the facility of advance withdrawal of their deposits. EPFO changed the EPF Scheme-1952 for this, saying that employees can withdraw 75% of the amount deposited in their account or an amount equal to three months’ salary (whichever is less). This amount can be used by the employees for their own needs and there will be no need to deposit it again. Any employee can take advantage of this facility.
Do not withdraw money from PF fund unless it is very important
Experts believe that PF withdrawal should be avoided unless it is very important. It is getting interest at the rate of 8.5%. The larger the amount that is withdrawn from EPF at this time, the bigger will be the impact on the retirement fund.
Big loss to your retirement fund
According to the estimated calculation, if you have 30 years left in your retirement and now you withdraw Rs 1 lakh from the PF account, then it will affect your retirement fund by Rs 11.55 lakh. Know here how much withdrawal will affect your retirement fund.
|how much money to withdraw||How much less will you get after 20 years (Rs)||How much less will you get after 30 years (Rupee)|
|10 thousand||51 thousand||1 lakh 16 thousand|
|20 thousand||1 lakh 02 thousand||2 lakh 31 thousand|
|50 thousand||2 lakh 55 thousand||5 lakh 58 thousand|
|1 Lac||5 lakh 11 thousand||11 lakh 55 thousand|
|2 lakh||10 lakh 22 thousand||23 lakh 11 thousand|
note : This table is given as a rough estimate. Apart from this, in the table given here, the interest was calculated on an annual basis.
7.4 lakh people have taken advantage of this
EPFO has so far settled 76.31 lakh advance claims under this scheme. Under this, a total amount of Rs 2.37 lakh crore has been transferred to the bank accounts of the subscribers.