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Full PF withdrawal allowed in some cases including housing, health

By FnF Correspondent | PUBLISHED: 19, Apr 2016, 13:46 pm IST | UPDATED: 19, Apr 2016, 14:08 pm IST

Full PF withdrawal allowed in some cases including housing, health New Delhi: The labour ministry on Monday eased the planned restriction on withdrawal of contribution to the employees' provident fund.

It said withdrawal can be allowed for housing, major medical treatment for self and family members, medical, dental and engineering education of children, and for their marriage.

The relaxation has also been extended to members who have joined an establishment belonging to or under the central or state government, and become a member of contributory provident fund or old age pension. These norms will come into effect from August.

The amendments were made after labour minister Bandaru Dattatreya received representations from trade unions.

A government release said the ministry had decided to pay the full accumulations to the credit of a member, including interest up to the date of payment, if he or she fulfils any of the above-mentioned conditions.

In February, the ministry had said PF subscribers would not be able to withdraw their provident fund after attaining the age of 54 years, and will have to wait till they are 58 years old.

Every month, a salaried individual contributes 12% of their salary to the EPF account and the employer matches this.

The rules also barred subscribers from claiming PF after 54 years of age. They will have to wait till they turn 57. As per the earlier norms, subscribers were allowed to claim 90 per cent of their accumulations in their PF account at the age of 54 years and their claims were settled just a year before their retirement.

The changes were expected to come into effect from May 1, 2016.

However, there are no changes to the rules on withdrawal of PF money in emergency situations. As was the case earlier, members will be allowed to withdraw to fund housing, major medical treatment for oneself and family members, education of children in medical, dental and engineering courses, and weddings.