- The government is planning to put a cap on premature withdrawal of provident fund (PF) money.
- The move is aimed at ensuring social security for workers in old age.
- The Employees’ Provident Fund Organisation (EPFO) has proposed that an employee be allowed to withdraw only 75% of the overall kitty, instead of 100%.
- Of the 13 million annual claims pending with the EPFO, over 6.5 million claims are for 100% withdrawal.
- The proposal, is pending with labour ministry and once approved it could be implemented.
- If implemented, the proposal could bring down the number of claims annually to just 5 million.
- EPFO, has rolled out Universal Account Number programme for all contributing members wherein each subscriber is allotted an account number.
- This helps the EPFO track members even after job switches.
- This also helps employees track their account as well as claim withdrawal or transfer online without the interference of the employers.
Source:The Economic Times