PF Rules Put on Hold - Bangalore Riots
1) In February, the government said that to claim or withdraw what your employer has deposited for you, you must wait till you turn 58 (the age limit was earlier 54). The new rule has been suspended till at least the end of July, the government said today.
2) "The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders," Labour Minister Bandaru Dattatreya told reporters.
3) Once you are hired, a portion of your salary with a matching amount from your employer is automatically deposited in an account that earns interest.
4) To withdraw what you have contributed, you need to be 58 years old, which is the official retirement age in India.
5) Many labour unions said that workers in some sectors -garment factories, for example - are unsure of being employed after they turn 50; so making them wait till they are 58 to collect what employers have contributed for them does not make sense.
6) In Bengaluru, thousands of garment factory workers set buses on fire and clashed with the police on major highways on the outskirts of the city.
7) In his Union Budget presented in February, Finance Minister Arun Jaitley announced that 60 per cent of the amount in your provident fund would be taxed when the account was emptied out or when you cashed in what you had saved.
8) After outrage from the middle class, that plan was cancelled.
9) Now, the government is considering whether you should be allowed to withdraw the entire savings accumulated in your provident fund for a fixed set of criteria like medical treatment for a serious illness, a home purchase, or the education or marriage of an employee's children.
10) Workers who have been unemployed for two months have till the end of July to claim the entire amount accrued in their provident fund. more
2) "The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders," Labour Minister Bandaru Dattatreya told reporters.
3) Once you are hired, a portion of your salary with a matching amount from your employer is automatically deposited in an account that earns interest.
4) To withdraw what you have contributed, you need to be 58 years old, which is the official retirement age in India.
5) Many labour unions said that workers in some sectors -garment factories, for example - are unsure of being employed after they turn 50; so making them wait till they are 58 to collect what employers have contributed for them does not make sense.
6) In Bengaluru, thousands of garment factory workers set buses on fire and clashed with the police on major highways on the outskirts of the city.
7) In his Union Budget presented in February, Finance Minister Arun Jaitley announced that 60 per cent of the amount in your provident fund would be taxed when the account was emptied out or when you cashed in what you had saved.
8) After outrage from the middle class, that plan was cancelled.
9) Now, the government is considering whether you should be allowed to withdraw the entire savings accumulated in your provident fund for a fixed set of criteria like medical treatment for a serious illness, a home purchase, or the education or marriage of an employee's children.
10) Workers who have been unemployed for two months have till the end of July to claim the entire amount accrued in their provident fund. more
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Why other political party didn't appose the decision. They are more interested in fighting for small useless things and ignored this big issue. The BJP govt will definitely pay for this by losing coming elections. I am surprised why decision was apposed in Bangalore only. Why not rest of Bangalore. more
Apr 21
epf department is a big pain and is also responsible for the stress that employees go through either in withdrawal or transfer. I have personally lost a lot of money because of delay in transfer and non payment of interest. And nobody is accountable. Employees should be allowed full encashment. This department is not at all for betterment of employees. more
Apr 20
Why can't PF contribution be made voluntary??? Why all salaried employees are made to participate in scheme?? Anyways, it is pain to track contributions and make transfers... Also, the pension component is extremely less and would not contribute to income in retired life, if one considers the value of money at that time. more
Apr 20
Dear Members, All the PF amendments done by the Central Government during the budget session, withdrawn fully said Mr. Bnandaru Dattathetreya, Labour Minister yesterday night due to unwanted riots and strikes by the employees at one of the factorty at Bangalore leading to violence. Also he said that the prevailing existing formalities before the amendment will continue. more
Apr 20
It is a great victory. However, we need to keep tab on what are the various circumstance under which the govt going to allow the full withdrawal post 31st July 2016. more
Apr 20
