provident fund

Planning to withdraw entire PF money? You better hurry

pf-hurry New PF norms will come into effect on May 1, 2016 | Reuters
  • The new norms will also extend subscribers' age of claiming PF to 57 from 54. As per the earlier norms, subscribers were allowed to claim 90 per cent of their accumulations on reaching 54 years.

From May 1 onwards, those who wish to withdraw their full provident fund money will find themselves negotiating tougher norms. For, the retirement fund body, EPFO, will bring in new restrictions that will not let any employee who has been out of job for two straight months to completely withdraw their PF accumulations.

Instead, they will only be eligible to draw their share of the PF and the interest accrued on it, and not the employee's contribution. Every month, a salaried individual contributes 12 per cent of her salary to the EPF account and the employer matches the contribution.

The new norms will also extend subscribers' age of claiming PF to 57 from 54. As per the earlier norms, subscribers were allowed to claim 90 per cent of their accumulations on reaching 54 years.

Earlier in February, the EPFO amended the EPF Scheme 1952 to tighten the various norms for withdrawal of provident fund including increasing age limit for filing such claims by retiring employees to 58 years from 54 years.

But due to practical difficulties, the Employee's Provident Fund Office on Thursday deferred the implementation of new norms till April 30. That means, all claims before before May 1 will be settled as per earlier provisions.

“All the claims received up to April 30 2016 are to be settled as per the provisions existing prior to the issue of the notification dated February 10 2016,” an EPFO circular said.

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