Earlier, members of Employees’ Provident Fund (EPF) can withdraw money for life-cycle needs such as fund housing, major medical treatment for oneself and family members, education of children in medical, dental and engineering courses, and weddings.
In February, the draconian new rules have imposed restrictions and barred withdrawals virtually in every sense. With the increasing pressure from the labour unions, the labour ministry said it will amend the rules issued in February but not giving major concessions.
Labour Minister Bandaru Dattatreya said a fresh notification will be issued soon and the restrictions will now apply from August 1 instead of May 1, leaving two months for members to withdraw or apply old norms to withdraw 100 per cent of their provident fund (PF).
In February, the labour ministry restricted 100 per cent withdrawal by members unemployed for two months or more. It said one can withdraw only their contribution, interest and not the employer’s contribution.
The draconian rules of the new government also barred subscribers from claiming PF after 54 years of age and until they turn 57 years. The concession given now is that these changes will be effective from August 1 and not from May 1, 2016.
However, there are no changes to the rules on withdrawal of PF money in emergency situations. As was the case earlier, members will be allowed to withdraw to fund housing, major medical treatment for oneself and family members, education of children in medical, dental and engineering courses, and weddings.[ tags , Employees’ Provident Fund, EPF, EPF accounts]