PARTIAL WITHDRAWAL FROM NPS ORDERS ISSUED BY PFRDAClick here to view Order - 1Click Here to view Order - 2Click here to view Order - 3 ********************************* FLASH STRIKE AGAINST PF RULES RESTRICTIONS IMPOSED BY CENTRAL GOVERNMENT

PARTIAL WITHDRAWAL FROM NPS ORDERS ISSUED BY PFRDAClick here to view Order - 1

Click Here to view Order - 2

Click here to view Order - 3

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FLASH STRIKE AGAINST PF RULES RESTRICTIONS IMPOSED BY CENTRAL GOVERNMENT

The flash strike against the recent PF Rules, 2016 of the Central Government (i.e., Centre’s new rule on Provident Fund withdrawal) by large section of Garment Factory Workers and other Industrial Workers of Karnataka State on 18^th and 19^th April 2016 received immense response and there was a massive protest which resulted in road blocks for hours together, thereby the entire traffic of Bengaluru City was paralyzed.  The traffic was also severely affected on Mysore, Tumkur and Hosur roads. 

             The COC Karnataka extended moral support and sympathy for this Labour Movement.  The February 10^thnotification was under attack from trade unions from the beginning.  The notification was published in the gazette onFebruary 26 and created technical problems.

            The violence in Bengaluru prompted the Labour Ministry, Govt. of India to cancel the February 10 notification which put restrictions on 100% withdrawal from the PF account.

        Within few hours of protest in Bengaluru and other parts of Karnataka state , the Hon’ble Minsiter for Labour, Shri.Bandaru Dattatreya acted upon and withdrawn the notification issued on February 10^th and informed that the old system will continue. This is a victory for the workers of the country.

GOVERNMENT DECIDES TO WITHDRAW THE 10th FEBRUARY-2016 NOTIFICATION WITH IMMEDIATE EFFECT

Press Information Bureau
Government of India
Ministry of Labour & Employment

21-April-2016 17:51 IST 

            Government had issued a notification dated 10th February 2016 regarding rules for withdrawal from EPF Funds by the members. Under the revised rules, the employee was permitted to withdraw the employees’ share from the fund (which is 12% of the wages). However, it was prescribed that the employers’ share of contribution towards the Provident Fund (which is 3.67% of wage) would be allowed to be withdrawn only at the age of retirement (58 years). The objective was to provide a minimum social security to the workers at the time of retirement. It was noticed that over 80% of the claims settled by EPFO belonged to pre-mature withdrawal of funds, treating the EPF accounts as savings accounts, and not a Social Security instrument. 

            In order to address the issues the amendment stated above was carried out with the consent of Trade Unions and with the intention of promoting a decent accumulation of provident fund for the members at the end of their working lifetimes. 

            However, considering the representations received from various quarters and after consultations with the various stakeholders, Minister of State (IC) Labour and Employment, Sh Bandaru Dattatreya announced that the government has decided to withdraw the said 10th February 2016 Notification with immediate effect. 

            Accordingly, the workers are now allowed to withdraw the entire amount from the provident fund as per existing provisions of the EPF Scheme 1952 including the employers’ share of 3.67%.   (Release ID: 139046) 21^st April,2016.