PF withdrawal

concerns that the new rule would take away their right over the employer’s portion of PF till the employees reach 58 years of age.

This is the second rollback on the revised EPF withdrawal norms announced in this year’s budget — the government had to earlier scrap its proposal to make 40 per cent of the corpus taxable on withdrawal.

Earlier on Tuesday, Dattatreya had indicated that a meeting of the Central Board of Trustees would be called “to see how best the employers’ contribution to EPF (3.67 per cent of basic wages) can be utilised for workers”.

Dattatreya had also said in his briefing that the Labour Ministry was considering to allow withdrawal of all accumulations by EPFO subscribers on grounds like purchase of house, serious illness, marriage and professional education of children.

In February, the EPFO had amended the EPF Scheme 1952 to revise norms, including an increase in the age limit for filing such claims by retiring employees from 54 years to 58. Besides, the EPFO also restricted the withdrawal of PF funds to the contribution of subscribers and interest earned by them on that, if the claimant has remained unemployed for more than two months — the employer’s contribution could be withdrawn only on maturity.

The Labour Ministry in a statement said the amendment was carried out with the consent of trade unions and with the intention of promoting a decent accumulation of provident fund for members at the end of their “working lifetimes”.

“In February, some trade unions and workers had demanded restrictions on PF withdrawals. The notification was issued at their behest. It was only at the last CBT meeting that they expressed their reservations regarding the change in withdrawal norms and said that it was not working. Now they have gone back on their original demand. We thought if we could align their demands and provide certain relaxations for withdrawing for some reasons, then why not withdraw the new rules