New Provident Fund Rules That Would Impact Every Employee
The 222nd Central Board of Trustees (CBT) meeting of Employees Provident Fund Organisation (EPFO) on 26th June 2018 has come up with an amendment on the provident fund rules. The new rule of Provident fund says that an EPFO subscriber can now withdraw 75% of the provident fund money after one month of job loss. Before this amendment, the minimum gap between job loss and the PF withdrawal was 2 months.
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The labour minister Mr Santosh Kumar Gangwar announced the same which is a great relief for the employees. The provision of withdrawing 75% of PF after a month of job loss will be very helpful in meeting financial need of the ex-employee.
Before the implementation of this rule, a person with a job loss has to wait for the minimum of 60 days from the day of job loss. Moreover, a subscriber had to contribute to his PF account for a minimum of 10 years to become eligible for a pension. If the account is closed before that term, the subscriber will not be eligible for the same.
The present EPF scheme 1952, does not allow employees to withdraw the PF amount in partial during the non-employment period. It allows only the full and final settlement of PF which compels the employee to withdraw the whole amount hence they lose the social security as well. The new rule of EPFO ensures that an employee can withdraw 75% of the PF during the non-employment period and the rest 25% will be there in the PF account itself. The remaining amount can be withdrawn after two months or else the subscribers can keep their accounts with the EPFO and use them after joining a new job.
Originally published at amritaagarwal.tumblr.com.
