Those who need to withdraw their full Provident Fund money, they better hurry.
The retirement fund body EPFO has deferred till April 30, implementation of new norms that restrict 100 percent withdrawal of PF by members who are out of job for more than two months.
The Employee’s Provident Fund Organisation in a circular issued last week said this decision has been taken in view of practical difficulties faced in implementation of new rules.
The new norms will come into effect from May 1 2016.
“All the claims received up to April 30 2016 are to be settled as per the provisions existing prior to the issue of the notification dated February 10 2016,” the circular.
Earlier in February EPFO tightened norms on withdrawal of the PF money.
According to the new rules, one could, in case of being unemployed for more than two months, withdraw only his share of the PF and the interest earned on it, and not the employer’s contribution.
Every month, a salaried individual contributes 12% of her salary to the EPF account and the employer matches the contribution.
The rules also barred subscribers from claiming PF amount after attaining 54 years of age. They would have to wait till 57 years.
As per the earlier norms, subscribers were allowed to claim 90 percent of their accumulations in their PF account at the age of 54 years and their claims were settled just one year before their retirement.