epf new amendment with effect 2016
TRANSCRIPT
Existing Rule New RuleThe EPF members (employees) canwithdraw the full EPF balance after 60 daysof unemployment.
(The EPF balance consists of employee’scontributions + employer’s contributions +interest amounts.
Every month 12% of your “salary” iscontributed towards EPF account.)
The EPF members cannot withdraw full PFamount before attaining the age ofretirement.
The maximum withdrawal on cessation ofemployment cannot exceed an amountaggregating employee’s own contributionand interest accrued thereon.
Employee can withdraw his / hercontributions + interest portion only.
The employer’s portion can be withdrawnafter attaining the retirement age (58years).
Full EPF balance cannot be withdrawn (limit on early PF withdrawals)
Existing Rule New Rule
Continuity of EPF membershipIf an employee withdraws full EPF amountafter resigning from the job, his / her PFmembership is deemed to be terminated.
Therefore he/she is not a member of EPFscheme after the full withdrawal.
An employee can only withdraw his shareon resigning from the job.
Employee cannot withdraw full EPFamount before attaining the retirementage.
So, employee will still be the member ofEPF even if he / she ceases to be anemployee of a EPF covered establishment.
90% of EPF balanceEmployee can withdraw up to 90% of his /her entire PF balance (employee share +employer share) on attaining 54 years ofage or within one year before actualretirement, whichever is later.
Employee would now be able to avail thisoption only on attaining the age of 57years.
The age has now been increased from thecurrent 54 years to 57 years.
Existing Rule New Rule
EPF Withdrawal provisionsAn employee0 can withdraw the full PFamount on retirement from service (55years) or on cessation of employment andnot being employed for at least 60 days.
The retirement age has now beenincreased from 55 to 58 years and theoption of full EPF withdrawal onresignation will not be allowed.
Employee can withdraw your contributions+ interest portion only.
Retirement AgeThe retirement age is considered as 55years.
The age of retirement has now beenincreased from 55 to 58 years.
