PF withdrawal norms for government employees relaxed

The Centre recently decided to amend the provisions of the General Provident Fund (Central Service) Rules 1960, to address demands of government employees by raising the withdrawal limits and simplifying administrative procedure.

According to government officials, some of the main changes have been brought in the category of withdrawals done for education by allowing withdrawals for primary, secondary, and higher education, covering all streams and institutions, as opposed to only higher education earlier. The withdrawal limit has also been increased from the existing three months’ pay or half the amount at credit, to up to 12 months’ pay or three-fourth of amount at credit, whichever is less.

“Also, this is now admissible to a subscriber after completion of 10 years of service against the earlier general eligibility of completing 15 years of service,” the official said.

In the category of withdrawals for housing, the permissible withdrawal of up to 90 per cent of balance at credit has been delinked from the limits prescribed under the HBA Rules and can be availed of by a subscriber any time during his service. Also, government employees will no longer need to deposit back the amount that was earlier required to be made subsequent to the sale of house for which GPF withdrawal had been availed.

Similar amendments have been made in clauses related to withdrawal made for purchase of car or two-wheelers. In addition, withdrawal of up to 90 per cent of balance without assigning reason, which is presently allowed to subscribers due for retirement or superannuation within a year, is now proposed to be allowed for up to two years before superannuation.

The administrative procedure for withdrawals has also been simplified. The requirement of submission of documentary proof of reason for withdrawal has now been removed and a simple declaration form by the subscriber explaining the reason for withdrawal would suffice.

In addition, the declared Head of Department is now empowered to sanction the withdrawal of his employees. Some of the other key changes include fixing a maximum time limit for sanctioning withdrawals to 15 days, in a bid to make the withdrawal process easier, the official note said.

The government has done these amendments to provide benefits to its employees.

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