Jobless for over 2 months? Get your full EPF out till April 30 else wait till you turn 58
EPFO rules restricting withdrawal of employees' provident fund will come into force from April 30. This means that in case you are unemployed for 2 months or more and want to withdraw your full EPF you can do so only within the next 15 days. After that the withdrawal amount will be restricted and you will be able to get the full amount only when you turn 58.
On Feb 10, 2016, the ministry of labour and employment made sweeping changes in the EPF rules restricting the withdrawal of EPF corpus.
Hitherto, a member of EPFO could withdraw 100% of the accumulated corpus if unemployed for a period of 2 months or more. The accumulated corpus is a sum of employer's contribution, employee's contribution and the interest earned on them. Of course, the person needs to have accumulated some EPF in a previous employment to have a corpus to withdraw at all.
However, the new EPF rules have restricted the amount of withdrawal that a member can make. Under the new rule, a member after being unemployed for 2 months or more can withdraw only his own contribution and the interest earned on it. He can't withdraw the corpus generated from the employer's contribution along with the interest earned on it. A member in the Employees Provident Fund Organisation (EPFO) can withdraw the full Employee Provident Fund (EPF) corpus only after attaining the age of 58 years. So, if you are jobless for 2 months or more and wish to withdraw the full EPF corpus, you just have 15 days to get it out.
The government has deferred the implementation of the new rule till April 30, 2016. From May 1, till 58 years of age you can withdraw only your own contribution in EPF which equals 12% of your basic salary plus the interest if unemployed for 2 months or more. The employer's contribution of 3.67% plus the interest accumulated will be withdrawable only once you attain the age of 58 years.
Therefore, if you are jobless for 2 months or more and have liquidity concerns, try to settle the EPF account before May 1. If you withdraw you can get the full accumulated EPF corpus (includes your own contribution, employer's contribution and the interest earned) which will assist you in tiding over problems faced due to unemployment in a better way. more
EPFO rules restricting withdrawal of employees' provident fund will come into force from April 30. This means that in case you are unemployed for 2 months or more and want to withdraw your full EPF you can do so only within the next 15 days. After that the withdrawal amount will be restricted and you will be able to get the full amount only when you turn 58.
On Feb 10, 2016, the ministry of labour and employment made sweeping changes in the EPF rules restricting the withdrawal of EPF corpus.
Hitherto, a member of EPFO could withdraw 100% of the accumulated corpus if unemployed for a period of 2 months or more. The accumulated corpus is a sum of employer's contribution, employee's contribution and the interest earned on them. Of course, the person needs to have accumulated some EPF in a previous employment to have a corpus to withdraw at all.
However, the new EPF rules have restricted the amount of withdrawal that a member can make. Under the new rule, a member after being unemployed for 2 months or more can withdraw only his own contribution and the interest earned on it. He can't withdraw the corpus generated from the employer's contribution along with the interest earned on it. A member in the Employees Provident Fund Organisation (EPFO) can withdraw the full Employee Provident Fund (EPF) corpus only after attaining the age of 58 years. So, if you are jobless for 2 months or more and wish to withdraw the full EPF corpus, you just have 15 days to get it out.
The government has deferred the implementation of the new rule till April 30, 2016. From May 1, till 58 years of age you can withdraw only your own contribution in EPF which equals 12% of your basic salary plus the interest if unemployed for 2 months or more. The employer's contribution of 3.67% plus the interest accumulated will be withdrawable only once you attain the age of 58 years.
Therefore, if you are jobless for 2 months or more and have liquidity concerns, try to settle the EPF account before May 1. If you withdraw you can get the full accumulated EPF corpus (includes your own contribution, employer's contribution and the interest earned) which will assist you in tiding over problems faced due to unemployment in a better way. more
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Pl. Observe the recent decision in the matter. All are removes and one can withdraw the amount as per earlier provisions. more
Apr 22
So finally We won. The Government withdraws the notification. Remain United for other causes too. And we shall win. more
Apr 22
EPF scheme has been formulated for the welfare of working community. Deposits of workers have been accumulating hugely during the past i.e. Rs. 3.5 lacs crores in 2010, Rs. 6.5 lacs crores in 2013 and Rs. 8.63 lacs crores in 2015 besides Rs. 27000 crores as unclaimed money , as per Govt. reports from time to time. EPF Dept. has been earning almost one lac crores as interest on current deposit. System of EPF withdrawal is very cumbersome . Most of the members are forced to forget withdrawing their dues. That is the reason EPFO has more than 30,000 crors rupees as unclaimed amount . Unfortunately some of the retired workers, the legal beneficiaries, are only getting fixed monthly pension of Rs. 668/- or even less. Basic reason being defective pension calculating formula which consider service period onward 1995 only ignoring long previous years they have served. Can any body survive with such meager amount ? Even old age pension(which they are not claiming) given by state Govts. is more than this. I fail to see where workers welfare is involved in the scheme.EPF Dept. is simply milking the working community. more
Apr 16
....I have written comments/letters in newspapers, done social work during school and college, worked in NGOs, fought human rights and consumer cases (insurance) and even become a lawyer to protest this injustice to meeted to ppl who are not from privileged backgrounds. But there is no justice in our society. Law only has become an instrument of the mighty. As a young lawyer I can see what a mess we have created for ourselves...no enforcement ...no rule of law....nothing to be happy about. I was attending one of these conferences when the Secretary of a particular Ministry was talking about climate change negotiations and the Paris deal.They speak in such a instrumental (practical), shallow way without understanding what they are doing to the country's interests and just bother to get favourable headlines. They thin they know best because they ahev a certain educational/family background lie IIT etc. Because nobody dare question them and their crusades of anticorruption are just sham. I mean these people just worry about foreign jaunts, postings, favours for their kids and kickbacks in some cases. they have ruined our country more than uneducated MP's and MLA's. more
Apr 16
Dear Ashish, BE COOL. Things cannot changed overnight. Today we are discussing, tomorrow we can write in newspapers as our opinion and next time we can protest at Jantar Mantar. We have to go step by step and success will be their. Mind it, we have to continue with our submissions and get more people accepting our views. GOOD LUCK. more
Apr 16
