New Delhi, April 19: There is good news in the offing for crores of Employees' Provident Fund (EPF) members. Reportedly, Government has relaxed the planned restriction on withdrawal of PF money.
The Labour Ministry has announced that people can withdraw entire Provident fund money for certain purposes. Ministry has said that PF subscribers can withdraw their retirement fund for the purpose of housing, medical emergencies, education of children and for their marriage.
Reportedly, the move which will come into effect from August 1, was taken after Labour Minister Bandaru Dattatreya received representations from trade unions regarding the same.
Earlier this month, retirement fund body EPFO deferred till April 30 implementation of new norms that restrict 100 per cent withdrawal of provident fund by members after unemployment of more than two months, among others.
The EPFO subscribers who are out of job for more than two months can file for full and final settlement of provident fund till month end.
In view of practical difficulties faced in implementation of the notifications, the new provisions will come into effect from May 1, 2016, a circular by the Employees Provident Fund Organisation (EPFO) said.
"Accordingly, all the claims received up to April 30, 2016 are to settled as per the provisions existing prior to the issue of the notification dated February 10, 2016," it added.
Earlier in February, the EPFO amended the EPF Scheme 1952 to tighten the various norms for withdrawal of provident fund including increasing age limit for filing such claims by retiring employees to 58 years from 54 years.
Besides, the retirement fund body also restricted withdrawal of PF to own contribution of subscribers and interest earned on that, if the claimant has remained unemployed for more than two months. The member would be able to withdraw employers contribution on maturity.
It was stipulated that the requirement of two months unemployment will not apply in cases of women members resigning from the services for the purpose of getting married, on account of pregnancy or child birth.
According to the new norms, subscribers will not be able to claim withdrawal of PF after attaining 54 years of age. They would have to wait till attaining the age 57 years.
(With inputs from PTI)