With effect from 10 February 2016, amendment has been made to the Provident Fund Scheme placing following restrictions on the Provident Fund withdrawal:
1. An employee may claim withdrawal of the full balance on retirement after attaining the age of 58 years.
2. An employee may claim early withdrawal of the partial balance (consisting of employee’s own share of contribution including interest thereon) on ceasing to be an employee of a covered establishment (employer registered under the Provident Fund). Prior to this amendment, the employee could claim full amount (including employer’s contribution and the interest thereon).
However, to claim such early withdrawal, the employee should not be re-employed in any other covered establishment for a continuous period of not less than two months before making the withdrawal application.
This condition of two months mentioned above will not apply for female members resigning for the purpose of getting married or on account of pregnancy or child birth.
Also, on 10 February 2016, two other notifications have been issued on the following:
1. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 shall also apply to banks employing 20 or more employees who are not covered under any other specified Provident Fund / Pension Scheme.
2. An Incentive Reward Scheme has been launched for employers allowing them refund of specified percentage of administrative charges paid by them on covering specified percentage of employees under the Universal Account Number