New PF Withdrawal Model on Hold Till July 2016 : Protests in Bengaluru

Recently Government has announced to allow withdrawal of PF Money in specific and important aspects. The Government Employees were disappointed by the government’s proposed recommendation in the Union Budget 2016. After the new announcement about PF Withdrawal, There is protest in Bengaluru which led Government to put on hold the proposal for 3 more months.

The government’s notification said from 10 February, 2016, an employee contributing to the Employees’s Provident Fund will not be allowed to withdraw the entire corpus. It basically meant that anyone who has been unemployed for two months or more can now withdraw only his own contribution into the Employees’ Provident Fund and the interest that has accumulated on it.

Further, the second portion i.e. the employer’s contribution to the EPF and the interest accumulated on it can only be withdrawn at the retirement age of 58.

Protests in Bengaluru
Protests in Bengaluru

In early March, the Centre withdrew the proposal. The government also revoked the proposal to limit non-taxable employers’ contribution to PF accounts at Rs 1.5 lakh. According to the new rules, subscribers will not be able to claim withdrawal of PF after attaining 54 years of age. They would have to wait till attaining the age 57 years.

In a meeting held on Monday 18 April 2016, the labour minister Bandaru Dattatreya restricted the planned restrictions by allowing the withdrawal of retirement funds for housing, major medical treatment for self and family members, medical, dental and engineering education of children, and for their marriage.

“The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders,” Labour Minister Bandaru Dattatreya told reporters.

In Bengaluru, several buses were set on fire and a police station was attacked on Tuesday as protest by garment factory workers against the new provident fund rules turned violent. Protesters attacked stones at Hebbagodi Police Station and torched detained vehicles parked there.

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