PF norms eased: Withdrawal allowed for housing, medical, education and marriage of children

Under fire from trade unions, Employees' Provident Fund Organisation (EPFO) has decided to change the new rules that restrict employees from withdrawing their entire provident fund (PF) balance till the age of 58.

The EPFO has brought in norms that exclude subscribers falling in certain categories. According to amended norms, a subscriber can withdraw his or her entire savings for housing purpose, treatment of himself/herself or family members suffering from TB (tuberculosis), leprosy, paralysis, cancer or undergoing heart operation, marriage of children as well as professional education (medical, engineering, dental) of children.

Further, the rules have been relaxed for a member who joins an establishment under the control of the central or state governments and becomes a member of old-age pension schemes framed by the central or state governments. The fresh amendment will come into effect from August 1.

According to a February notification, EPFO subscribers can withdraw the employer's contribution of PF deposit only after attaining 58 years of age.

Under new EPFO norms, the employer's share will continue to earn interest as the body had recently approved a plan to credit interest to accounts which have no deposits for three consecutive years. According to EPFO norms, 12 per cent of an employee's salary goes as contribution to the fund, along with a matching contribution from the employer.