Government backs down, restores old PF withdrawal system
"We're cancelling the notification of 10th Feb 2016. The old system will continue," Labour Minister Bandaru Dattatreya told reporters. His announcement comes in the midst of protests by labour unions in several parts of the country, most notably in Bengaluru, against the bar on withdrawing employer's contribution from the PF money.
"We have rolled back as this was the demand of the workers." Dattatreya added, saying "The old system will continue now. The decision will ratified in the Central board of trustees meeting."
Police yesterday lathicharged a crowd of garment factory workers protesting against the amendment to the EPF Act.
The Labour Ministry is also contemplating permitting withdrawal of all accumulations by Employees' Provident Fund Organisation's (EPFO) subscribers on grounds like purchase of house, serious illness, marriage and professional education of children. The matter has been referred to Law Ministry for clearance.
In February, the ministry had issued a notification restricting 100 per cent withdrawal of provident fund by members after unemployment of more than two months, among others. Following the concerns raised by trade unions and other stakeholders, the ministry decided to keep the notification in abeyance till April 30.