Provident fund withdrawal allowed for housing, health, child education and marriage

NEW DELHI: Bandaru Dattatreya-led Labour Ministry has relaxed the recently announced provident fund withdrawal norms besides differing its implementation by three more months to August 1. The stringent PF withdrawal norms, unveiled in February this year, were to be implemented in February only but had got deferred to May 1 last month.

According to the ministry of labour and employment, the relaxed norms will enable people to withdraw the employers contribution of 3.67% to PF for housing, medical emergency, education of children and for their marriage purposes.

The earlier proposal had restricted the withdrawal of employers' contribution and interest earned on it under the EPF scheme till retirement or 58 years, the move which has drawn flak from trade unions and workers. However, the ministry has retained the higher age limit for cumulative withdrawal.

The existing rules allow employees to withdraw the full PF balance if he or she is out of employment for continuous 60 days.

The recent relaxation has 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.