Relaxation in EPFO scheme
Press Information Bureau
Government of India
Ministry of Labour & Employment
Dated: 02-May, 2016
Relaxation in EPFO scheme
The Government proposes to relax/amend the Employees’ Provident Fund Scheme to enable loss-making and sick PSUs to continue to run their own Provident Fund Trusts.
The proposal is being examined in consultation with Central Board of Trustees, Employees’ Provident Fund.
The said relaxation will not be applicable to the private firms and their employees.
Provident Fund Trusts of exempted establishments are custodian of the hard-earned money of the workers which needs to be protected. The private companies do not have the sovereign guarantee behind them as enjoyed by the Public Sector Undertakings of both the Central Government and the State Governments. Therefore, the proposed amendment is not intended to extend this advantage to private companies, so as to protect the interest of the workers.
This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.
Restriction on EPF withdrawal
As per extant rules governing the withdrawal of Employer’s contribution from the Employees Provident Fund Scheme, a member can withdraw both the employer’s share of contribution and his own share under the following circumstances: –
(i) On retirement from service after attaining the age of 55 years.
(ii) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity.
(iii) On migration from India for permanent settlement abroad.
(iv) On termination of service in the case of mass or individual retrenchment.
(v) On termination of service under a voluntary scheme of retirement.
(vi) On ceasing to be an employee in any establishment.
However, notification No. G.S.R.158(E) dated 10.02.2016 restricting the withdrawal of 3.67 per cent of employer’s share of contribution till the age of 58 years has since been withdrawn by the Government on 19.04.2016.
This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.
Source: PIB