The NDA Government is looking to cap premature provident fund withdrawals
at 75 per cent for EPFO subscribers at any given time till the age of
58.
Under the existing provisions, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount by showing not employed anywhere for two months.
The proposal regarding changes in 'The Employees' Provident Fund Scheme' has been sent to the Labour Ministry for approval
Central Provident Fund Commissioner KK Jalan said that the proposed changes are likely to be notified in the next 10-15 days, as it has got the backing of employee unions.
Asked whether the 75 % withdrawal ceiling has been proposed for even circumstances like constructing a house, marriage, children's education, etc, Jalan replied in the affirmative.
The idea behind the proposal, he said, is to ensure that provident fund is used as an old-age security and not misused for purposes other than it was meant to be.
The provident fund money, he said, should be used as an old-age security scheme and not like a savings bank account.
Note
Presently, out of the 1.3 crore annual claims, not less than 65 lakh claims are for full withdrawal.
Under the existing provisions, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount by showing not employed anywhere for two months.
The proposal regarding changes in 'The Employees' Provident Fund Scheme' has been sent to the Labour Ministry for approval
Central Provident Fund Commissioner KK Jalan said that the proposed changes are likely to be notified in the next 10-15 days, as it has got the backing of employee unions.
Asked whether the 75 % withdrawal ceiling has been proposed for even circumstances like constructing a house, marriage, children's education, etc, Jalan replied in the affirmative.
The idea behind the proposal, he said, is to ensure that provident fund is used as an old-age security and not misused for purposes other than it was meant to be.
The provident fund money, he said, should be used as an old-age security scheme and not like a savings bank account.
Note
Presently, out of the 1.3 crore annual claims, not less than 65 lakh claims are for full withdrawal.
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