In a landmark decision that will be a major relief for many, the government has allowed withdrawal of Provident Fund (PF) for certain expenses including housing, major medical treatment for self and family members, medical, dental and engineering education of children, and for their marriage.
The relaxation has also been extended to members who have joined an establishment belonging to or under the central or state government.
However, this will come into effect from August. The Labour Ministry has eased restrictions on the withdrawal of contribution to the employees’ provident fund. Thereby, withdrawal for dental and engineering education of children and their wedding is now allowed, the report said.
The labour ministry said that the government will now pay full accumulations to the credit of a member, including interest up to the date of payment if the withdrawals are being made for any of the aforementioned reasons, the report added.
According to the new norms, subscribers will not be able to claim withdrawal of PF after attaining 54 years of age. They would have to wait till attaining the age 57 years.
Earlier this year, Finance Minister Arun Jaitley during the Union Budget had announced amendment in the EPF Scheme 1952 to tighten the various norms for withdrawal of provident fund including increasing age limit for filing such claims by retiring employees to 58 years from 54 years.