New PF norms kept in abeyance for three months: Labour Ministry

New Delhi, Apr 19 (KNN) After several protests across states by labour unions against the proposed amendments in the PF withdrawal norms, the government today kept in abeyance for three more months the proposal to not allow withdrawal of employer's contribution to the provident fund corpus until the age of 58 years.

Following the concerns raised by trade unions and other stakeholders, the ministry decided to keep the notification in abeyance till April 30. Its implementation has been again deferred till July 31, as per a Labour Ministry statement.

Talking to the reporters, Labour Minister Bandaru Dattatreya said, "The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders."

Dattatreya said a meeting of the Central Board of Trustee would be called "to see how best the employers' contribution to EPF (3.67 per cent of basic wages) can be utilised for workers."

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.