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 The employer’s portion can be withdrawn after attaining the retirement age (58 years).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
Acknowledge(0)
Amend(0)
201The 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 The employer’s portion can be withdrawn after attaining the retirement age (58 years).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
Acknowledge(0)Amend(0)
I have a query about this amendment. This amendment will be effective from the 10th of February '16. If someone has left their job before this date (suppose the 5th of February '16) and they withdraw their PF after 2 months (suppose the 5th of April '16), then will this amendment be applicable to their withdrawal? Please advise.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Date of leaving shall be construed as the 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. The employer's contribution shall be paid only at the age of 58 years.
Further, TDS, as applicable (Rs. 30,000 as of the date, which is enhanced to Rs. 50,000/- in the current budget), i.e., if the amount paid exceeds these amounts for the service rendered below 5 years, tax will be applicable.
From India, Mumbai
Acknowledge(0)Amend(0)
Further, TDS, as applicable (Rs. 30,000 as of the date, which is enhanced to Rs. 50,000/- in the current budget), i.e., if the amount paid exceeds these amounts for the service rendered below 5 years, tax will be applicable.
From India, Mumbai
Acknowledge(0)Amend(0)
The budget proposals for 2016-17 and any subsequent amendments are expected to take effect either from the date of notification or from 1.6.2016, whichever comes first. Therefore, we need to await the appropriate notifications to be issued by the government. As a result, the provisions currently in effect for the fiscal year 2015-16 may continue to apply. Please check and confirm.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Rajkot
Acknowledge(0)Amend(0)
Hold on. There are indications that there is likely to be a review of this proposal and its eligibility for tax. Until then, hope that good sense will prevail.
Besides, there are facts and myths galore on the issue.
From India, Pune
Acknowledge(0)Amend(0)
Besides, there are facts and myths galore on the issue.
From India, Pune
Acknowledge(0)Amend(0)
Dear all,
The Amendment in EPF has no relation to Budget 2016. There is a notification from the Labour Ministry stating that until retirement, PF cannot be withdrawn in full. If a member needs an amount after cessation from employment, they have to declare that they were not employed in a PF-applicable position during the last two months and can withdraw the member's contribution with interest.
Regarding the retirement age, even if the establishment's policy sets the retirement age at 55 years or earlier, PF cannot be withdrawn until age 58, and 90% withdrawal will only be possible after reaching age 57. Previously, if a member's retirement as per the company was at 55 years or earlier, the member could withdraw 90% of the amount upon reaching age 54.
Therefore, as per the new notification No - GSR 158 (E) on new para 68NNNN, a member's contribution with interest can be withdrawn subject to fulfilling the declaration of two months of non-employment.
Thank you.
From India, Pune
Acknowledge(0)Amend(0)
The Amendment in EPF has no relation to Budget 2016. There is a notification from the Labour Ministry stating that until retirement, PF cannot be withdrawn in full. If a member needs an amount after cessation from employment, they have to declare that they were not employed in a PF-applicable position during the last two months and can withdraw the member's contribution with interest.
Regarding the retirement age, even if the establishment's policy sets the retirement age at 55 years or earlier, PF cannot be withdrawn until age 58, and 90% withdrawal will only be possible after reaching age 57. Previously, if a member's retirement as per the company was at 55 years or earlier, the member could withdraw 90% of the amount upon reaching age 54.
Therefore, as per the new notification No - GSR 158 (E) on new para 68NNNN, a member's contribution with interest can be withdrawn subject to fulfilling the declaration of two months of non-employment.
Thank you.
From India, Pune
Acknowledge(0)Amend(0)
Dear Friends,
Greetings. I'm aged 63 years and working in a private college. The PF started in 2014. I want to withdraw 90% of my money. Am I eligible to withdraw? Please guide me through.
From India, Hyderabad
Acknowledge(0)Amend(0)
Greetings. I'm aged 63 years and working in a private college. The PF started in 2014. I want to withdraw 90% of my money. Am I eligible to withdraw? Please guide me through.
From India, Hyderabad
Acknowledge(0)Amend(0)
Composite claim forms - EPF notification dated Feb 20,2017
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.