In a major relief to the salaried class, the government on Tuesday cancelled the new Provident Fund withdrawal norms which restricted workers from withdrawing the entire amount from the PF till they attend the age of 58 years.
This cancellation of the new norms means that an employee can now withdraw the entire corpus accumulated under the EPF tax free including the employers’ share of 3.67 percent.
“The notification issued on February, 10, 2016 is cancelled. Now the old system will continue,” Union Labour Minister Bandaru Dattatreya said at a press conference.
We're cancelling notification(restricting complete withdrawal of PF)of 10th Feb 2016,old system will continue: Union Labour Min B Dattatreya
— ANI (@ANI_news) April 19, 2016
“I will take ratification from CBT (Central Board of Trustees of EPFO),” he said after violence rocked Bengaluru for the second day when garment industry workers torched several buses and attacked a police station protesting against the tightening of rules.
Old system will continue now.This decision will be ratified in Central board of trustees' meeting-Bandaru Dattatreya pic.twitter.com/zf0BiXq37I
— ANI (@ANI_news) April 19, 2016
The government had come under fire from various angles, especially from the salaried class, following the announcement that employees would not be allowed to withdraw their full PF contribution amount till they attend the age of 58 years.
