Labour Ministry set to cap premature PF withdrawals at 75 per cent; to check ‘misutilisation’
The Labour Ministry is all set to cap premature provident fund withdrawal at 75 per cent of total deposits in case an EPFO subscriber goes without a job for two months.
The rest 25 per cent would be paid to the subscriber at the age of 58 years.
At present, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount prematurely by showing not employed anywhere for two months.
The ministry has firmed up the decision on premature PF withdrawals after the EPFO trustees from workers’ side unanimously supported the move in a meeting held here today, a Labour Ministry official said.
The official said that though the ministry has shown its intent to cap PF withdrawal at 75 per cent earlier this month, but they wanted to take trade unions representatives on board.
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