The Central Government will make amendments to the rules for the withdrawal of PF amount up to 90 percent for the purchase of home to 400 million employee sponsored fund members. This will help EPFO members make down payments to buy a home. In this regard, the information provided in the Parliament on Wednesday was given by the Central Government.
After revising the scheme, the Employees can also repay the home loan EMI from their EPF account. According to the proposed new provisions from EPFO, at least 10 subscribers will have to set up a cooperative society and then they can withdraw money from the PF account.
According to the new provisions, if a subscriber is a member of a co-operative society and housing society, then he will be able to withdraw the amount of up to 90% from his account for the purchase of the house or flat. Not only this, the amount can be withdrawn for the construction of the house.
Last year, Union Labor Minister Bandaru Dattatreya had said that such facility would be given to PF account holders. Significantly, most of the employees cut their working lives in rented houses. They use all the money received after retirement to buy a home. At present, all the employees coming into the purview of the EPFO have to pay 12 percent of their basic pay in the provident fund. Includes dearness allowance in addition to basic pay.