FLIP-FLOP GOVT: EPF SAFETY NET BACK

Curbs on jobless worker on withdrawing employer's share in PF account, until he reaches 58, revoked

Union finance minister Arun Jaitley’s new norms -- restraining a jobless worker from withdrawing the employer's share in his provident fund account until he reaches 58 years of age – have been withdrawn.

The decision came as many parts of Bengaluru came to a grinding halt as garment factory workers went on a rampage setting buses ablaze. They also attacked a police station on the second day of their agitation.

Earlier in the day, there was a typical flip-flop by the Modi Sarkar with the government initially de- ciding to only keep the matter in abeyance till July 31, 2016. Within hours the half-hearted ‘abeyance’ move was dropped and it was decided to cancel the controversial notification which prevented the fixed income groups from dipping into their precious PF savings before retirement.

In February, the EPFO had amended the EPF Scheme to tighten the various norms for withdrawal of provident fund. The new norms had stipulated that subscribers will not be able to claim withdrawal of PF after attaining 54 years of age. They would have to wait till they attained the age of 57 years.

Earlier, subscribers were al- lowed to claim 90 per cent of their accumulations in their PF account at the age of 54 years and their final claims were settled just one year before retirement.

"The notification issued on February, 10, 2016, is cancelled. Now the old system will continue," Union Labour Minister Bandaru Dattatreya said at a press conference here. Giving reasons for the rollback, Dattatreya said, "The trade unions had requested us to do so. The earlier decision (to tighten the PF withdrawal norms) was also taken after consulting the trade unions. Now, also, on the behest of the trade unions, we have rolled back the decision."

When these norms were announced by the finance minister in his 2016 budget speech, it led to an immediate online protest following which the implementation was deferred till April. It was expected that some clarity would emerge in the intervening period, but as this did not happen, protests erupted in different parts of Bengaluru. The new norms had outraged the salaried middle class wage earners as they were unsure of being employed continuously till they attained the age of 58. It was argued that a person who has to fend for himself and is no longer a salaried employee, say, at the age of 50, would be needlessly required to wait another eight long years, before becoming eligible for the withdrawal of the provident fund contributions. The withdrawals are generally made on grounds like purchase of house, serious illness, marriage and professional education of children. Earlier in the day, over half a dozen buses were burnt in Bengaluru. Even private properties were damaged. In Electronic City, the office of Biocon was vandalized. Gates of many IT companies were ripped apart and property damaged by rampaging crowds. The police were forced to fire teargas shells to control the crowd. Many policemen too were injured. Even a few ambulances were stopped and attacked. In a few places journalists covering the protest were chased and attacked. Traffic came to a grinding halt with major roads witnessing a block of over 4 hours. Many missed their flight from the Bengaluru International Airport.

Over half a dozen buses were burnt in Bengaluru. Even private properties were damaged. In Electronic City, the office of Biocon was vandalized. Gates of many IT companies were ripped apart and property damaged by rampaging crowds.