Press Information Bureau
Government of India
Ministry of Labour & Employment
21-April-2016 17:51 IST
Government Decides to withdraw the
10th February 2016 Notification with Immediate Effect
Government had issued a notification
dated 10th February 2016 regarding rules for withdrawal from EPF Funds by the
members. Under the revised rules, the employee was permitted to withdraw the
employees’ share from the fund (which is 12% of the wages). However, it was
prescribed that the employers’ share of contribution towards the Provident Fund
(which is 3.67% of wage) would be allowed to be withdrawn only at the age of
retirement (58 years). The objective was to provide a minimum social security
to the workers at the time of retirement. It was noticed that over 80% of the
claims settled by EPFO belonged to pre-mature withdrawal of funds, treating the
EPF accounts as savings accounts, and not a Social Security instrument.
In order to address the issues the amendment stated above was carried out with
the consent of Trade Unions and with the intention of promoting a decent
accumulation of provident fund for the members at the end of their working
lifetimes.
However, considering the representations received from various quarters and
after consultations with the various stakeholders, Minister of State (IC)
Labour and Employment, Sh Bandaru Dattatreya announced that the government has
decided to withdraw the said 10th February 2016 Notification with immediate
effect.
Accordingly, the workers are now allowed to withdraw the entire amount from the
provident fund as per existing provisions of the EPF Scheme 1952 including the
employers’ share of 3.67%.
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