TRENDING TAGS :
Government rolls back Provident Fund withdrawal norms
New Delhi: The government has waived off the norms that had restricted complete withdrawal from Employee's Provident Fund (EPF) account before the retirement age of 58 years.
Bowing to the trade union protesters' demand the government has set aside the controversial PF norms and curbed the planned restrictions by allowing the withdrawal of retirement funds for housing, Major medical treatment for self and family, dental and engineering education of children and for their marriage.
Initial norm:
- The new norm related to withdrawl was introduced in Union Budget 2016.
- The government notification said from February 10, 2016, an employee contributing to EPF will not be allowed to withdraw the entire amount.
- IT meant that employees can only withdraw their on contribution to PF and the interest that has accumulated on it.
- The employer's contribution to the EPF and the interest accumulated on it can only be withdrawn at the retirement age of 58.
- Before the introduction of the norm, an employee could could withdraw the entire amount accumulated under the EPF tax free.
The government's roll back of the new proposal has definitely calm down the service class as now the entire amount could be withdrawn for some specific necessary needs.
Next Story
