Curbs on PF withdrawals from May 1

New Delhi: Restrictions on complete withdrawal from Employees’ Provident Fund (EPF) account will be applicable from May 1, 2016.

New Rules Say……

The amended rules do not allow an employee to withdraw the entire amount from his or her PF account till the subscriber attains the age of 58, the age of retirement.  According to the new rules, he can only withdraw the contribution to the PF and interest accrued on it. The employer’s contribution and interest can only be withdrawn after attaining the age of retirement.

Cap of 60 Days……..

According to existing rules, employees can withdraw the full PF balance if he or she is out of employment for continuous 60 days. Now onwards, if person is not in employment for continuous in 60 days he or she can withdraw only his contribution and interest on it from his account. 

The government says that the PF is a pension benefit and it should be withdrawn only after the retirement. The trade unions are saying that this is part of employees’ wage and they have the right to decide in what manner they want to spend.

For Women Employees Cap of 60 Days is not applicable…..

Women employees are exempted from the rule of remaining in unemployment for two months before applying for withdrawal from PF account. They can withdraw their contribution and interest accrued on it immediately after resigning a job on account of marriage or pregnancy or child-birth.

Source | http://www.deccanherald.com

Regards

Pralhad Jadhav

Senior Manager @ Library

Khaitan & Co

Upcoming Event | National Conference on Future Librarianship: Innovation for Excellence (NCFL 2016) during April 22-23, 2016.

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