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 that they have not been employed anywhere for two months.
The EPFO trustees from the workers’ side unanimously supported the move in a meeting held in Delhi today, a Labour Ministry official said.
Even though that firmed the ministry’s decision, the official said that the ministry is waiting to take trade unions representatives on board.
All India Trade Union Congress Secretary D L Sachdev said that the provision will not apply for accounts that have had no deposit in 36 months.
Presently, out of 1.3 crore annual claims, not less than 65 lakh claims are for full withdrawal. If the proposal is implemented by the Centre, the total number of claims would come down to 50 lakh.
— KK Jalan, Central Provident Fund Commissioner, EPFO
Sachdev said that they suggested that in case of emergency, like cancer treatment and heat bypass, subscribers should be allowed to withdraw a part of the remaining 25 per cent under certain conditions.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)