The EPFO on June 26, 2018, announced that its members can now withdraw 75% of their funds after a month of unemployment. The remaining 25% of the funds can be withdrawn after the completion of 2 months of unemployment. Notably, in the past members were allowed to withdraw all their funds and settle the account in one go after 2 months of unemployment. The new changes have been implemented under the new provision in the Employee Provident Fund Scheme 1952. Speaking to media about the new changes made in the scheme, Labour Minister Santosh Kumar Gangwar said the decision was made after holding a meeting with the trustees. The minister further said that these changes were made in order to allow the people to take full advantage of its account on 1 month of unemployment. A person can withdraw his or her funds after 2 long months of unemployment.
The minister also said that he approves all the agendas listed for the meeting of the Central Board of Trustees on June 26, 2018. He further added that the members present in the meeting have also given the extension of 1 year to exchange-traded funds manufacturers such as SBI and UTI Mutual funds till July 2019.
Apart from being unemployed, as much as 5 crore EPFO members are permitted to withdraw their PF balance in case of emergency or for any other activity such as building a house, construction activity, repayment of the loan, for children’s marriage etc. An employee can also withdraw the amount for medical treatment of the family member under 1952 Act.
According to a report, the EPFO had given 8.65% interest for the year 2016-2017. The employees also got 8.8% in 2015-16 and 8.75 IN 2013-2015 respectively.
According to sources, the members also rolled out a proposal to make changes into investment pattern of the EPFO to allow the body to make an investment in equity index exchange-traded funds beyond NIFTY 50 and Sensex.