Dear All,
The Ministry of Labour and Employment, Government of India, has recently made a few amendments in the Employees’ Provident Fund Scheme, 1952 (PF Scheme). These guidelines are mainly related to ‘early withdrawals‘ from Provident Fund & provisions related to PF.
New Rule: The EPF members cannot withdraw full PF amount before attaining the age of retirement. The maximum withdrawal on cessation of employment cannot exceed an amount aggregating employee’s own contribution and interest accrued thereon. i.e, A person (Separated employee) can withdraw their contributions + interest portion only. The employer’s portion can be withdrawn after attaining the retirement age (58 years).
Continuity of EPF membership:
• Existing rule: If an employee withdraws full EPF amount after resigning from the job, his/her PF membership is deemed to be terminated. That means he/she is not a member of EPF scheme after the full withdrawal.
• New Rule: An employee can only withdraw his share on resigning from the job. A person (Separated employee) cannot withdraw full EPF amount before attaining the retirement age (58yrs). So, A person (Separated employee) will still be the member of EPF even if A person (Separated employee) cease to be an employee of a EPF covered establishment.
Retirement Age
• Existing rule: The retirement age is considered as 55 years.
• New Rule: The age of retirement has now been increased from 55 to 58 years.
Note: The detailed official notification is attached for your reference please,
From India, Chennai
181The Ministry of Labour and Employment, Government of India, has recently made a few amendments in the Employees’ Provident Fund Scheme, 1952 (PF Scheme). These guidelines are mainly related to ‘early withdrawals‘ from Provident Fund & provisions related to PF.
New Rule: The EPF members cannot withdraw full PF amount before attaining the age of retirement. The maximum withdrawal on cessation of employment cannot exceed an amount aggregating employee’s own contribution and interest accrued thereon. i.e, A person (Separated employee) can withdraw their contributions + interest portion only. The employer’s portion can be withdrawn after attaining the retirement age (58 years).
Continuity of EPF membership:
• Existing rule: If an employee withdraws full EPF amount after resigning from the job, his/her PF membership is deemed to be terminated. That means he/she is not a member of EPF scheme after the full withdrawal.
• New Rule: An employee can only withdraw his share on resigning from the job. A person (Separated employee) cannot withdraw full EPF amount before attaining the retirement age (58yrs). So, A person (Separated employee) will still be the member of EPF even if A person (Separated employee) cease to be an employee of a EPF covered establishment.
Retirement Age
• Existing rule: The retirement age is considered as 55 years.
• New Rule: The age of retirement has now been increased from 55 to 58 years.
Note: The detailed official notification is attached for your reference please,
From India, Chennai
i have query about this amendment.
this amendment will be effective from 10th Feb'16. if someone has left job before this date ( suppose 05th Feb'16) and he will withdrawal his PF after 02 month ( suppose 05th April'16) then this amendment will be applicable to his withdrawal.
pls advise.
From India, Delhi
this amendment will be effective from 10th Feb'16. if someone has left job before this date ( suppose 05th Feb'16) and he will withdrawal his PF after 02 month ( suppose 05th April'16) then this amendment will be applicable to his withdrawal.
pls advise.
From India, Delhi
YES, Date of leaving shall be construed as date of settlement. Therefore, any settlements made after 10th February 2016, these provisions will apply and only the member's contribution shall be paid to him and employer's contribution shall be paid only at the age of 58 years.
Further, TDS as applicable (Rs. 30,000 as of date which is enhanced to Rs. 50,000/- in the current budget) i.e. if the amount paid is exceeding these amounts for the service rendered below 5 years, Tax will be applicable.
From India, Mumbai
Further, TDS as applicable (Rs. 30,000 as of date which is enhanced to Rs. 50,000/- in the current budget) i.e. if the amount paid is exceeding these amounts for the service rendered below 5 years, Tax will be applicable.
From India, Mumbai
The budget proposals (2016-17) and amendment thereof are expected to be effective from the date of notification or 1.6.2016 whichever earlier. Therefore we have to await appropriate notifications to be issued by the Govt. Consequently provisions in vogue for the current year 2015-16 might only would apply. Pl.check and confirm.
From India, Bangalore
From India, Bangalore
What happen to finiance minister..... Kar kya rahe ho sir.... Aapne paisa nahi milaya hai.... Hamare employer ne paisa milaya hai. Pls pls pls decision wapas lo.
From India, Rajkot
From India, Rajkot
Hold on. There are indications that there is likely to be a review of this proposal and its exigibility to tax. Until then hope that the good sense will prevail.
Besides there are facts and myths galore on the issue.
From India, Pune
Besides there are facts and myths galore on the issue.
From India, Pune
Dear all,
The Amendment in EPF has no relation to Budget 2016.
There is notification from Labour ministry that until retirement PF cannot be withdrawal in full and If member need amount after cessation from the employment, he has to declare that last two months he in not in employment where PF is applicable and can withdraw Member's contribution with interest.
The age of the retirement:
Even though the Establishment's policy as retirement age 55 years or earlier, PF cannot be withdrawn up to age 58 and 90% withdrawal will be only after age 57 years.
Previously -If the member's retirement as per Company 55 years or earlier, member can withdraw 90 % amount on attending age 54 yrs.
Therefore as per new notification No - GSR 158 (E) on new para 68NNNN - member's contribution with interst can be withdrawn subject to fulfillment of declaration of 2 months non-employment.
From India, Pune
The Amendment in EPF has no relation to Budget 2016.
There is notification from Labour ministry that until retirement PF cannot be withdrawal in full and If member need amount after cessation from the employment, he has to declare that last two months he in not in employment where PF is applicable and can withdraw Member's contribution with interest.
The age of the retirement:
Even though the Establishment's policy as retirement age 55 years or earlier, PF cannot be withdrawn up to age 58 and 90% withdrawal will be only after age 57 years.
Previously -If the member's retirement as per Company 55 years or earlier, member can withdraw 90 % amount on attending age 54 yrs.
Therefore as per new notification No - GSR 158 (E) on new para 68NNNN - member's contribution with interst can be withdrawn subject to fulfillment of declaration of 2 months non-employment.
From India, Pune
Dear Freiends, Greetings. I'm aged 63 years working in a private college.The PF started from 2014 onwards. I want to withdraw 90% of my money. Am I eligible to withdraw. Please guide me through.
From India, Hyderabad
From India, Hyderabad
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EPF New Amendment.pdf