The government is planning to cap premature withdrawals at 75%, for EPFO (Employees’ Provident Fund Organisation) subscribers, at any given time till the age of 58. Under the existing provisions, EPFO subscribers can withdraw the entire amount by declaring that they are not employed anywhere for two months.
The proposal regarding changes in the Employees’ Provident Fund Scheme has been sent to the labour ministry for approval. “We will take a decision in this regard in the next 10-15 days,” labour secretary, Shankar Aggarwal, said.
Central provident fund commissioner, KK Jalan, also said the proposed changes are likely to be notified soon, as they have got the backing of employee unions. Asked whether the 75% withdrawal ceiling has been proposed for even needs like constructing a house, marriage, children’s education, etc, Mr Jalan replied in the affirmative.