Provident Fund withdrawal rules relaxed

Provident Fund withdrawal rules relaxed

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In some good news for the salaried class people, the Labour Ministry has announced a relaxation in the provident fund withdrawal norms. The new norms of the provident fund will be implemented from August 1, 2016. The Ministry of Labour and Employment said that people will be able to withdraw the employer’s contribution of 3.67% to PF for housing, education of children, medical emergency and marriage purposes.
Earlier the norms had limited the withdrawal of the employer’s contribution and interest earned on it under the EPF scheme till the retirement or 58 years. AT the same time the ministry has retained a higher age limit for the cumulative withdrawal.
According to the existing rules, the employees are allowed to withdraw the full PF balance if the person is out of employment for continuous 60 days. The new relaxed rules have been applied to members who have joined an established belonging to or under the central or state government and become a member of the contributory provident fund or old age pension.
The new norms have also said that the employees will not be able to claim the withdrawal of the PF after attaining 54 years of age and that they will have to wait till attaining the age of 57 years.

Photo Credits: ibnlive