CA NeWs Beta*: Five things you should know about premature PF withdrawals

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Sunday, July 26, 2015

Five things you should know about premature PF withdrawals


New Delhi: The Labour Ministry is all set to cap premature provident fund withdrawal at 75 percent of total deposits in case an EPFO subscriber goes without a job for two months.

The Labour Ministry will soon issue a notification in this regard to amend the Employees' Provident
Fund Scheme to cap the withdrawal.


Here are five things you should know

1. At present, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount prematurely by showing not employed anywhere for two months.

2. Under the new provision, EPFO will retain 25 percent of a subscriber's PF till he attains the age of 58, and his account has to be credited with due interest.

3. In case of emergency, subscribers should be allowed to withdraw a part of remaining 25 percent under certain conditions.

4. These condition could be requirement for money for treatment of deadly diseases like cancer or for heart bypass surgery or for any other such situation, he added.

5. PF subscriber can retain his or her Unique Account Number while changing jobs.
With Agency Inputs

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