To ensure that its subscribers have a social security net in their old age, the Employees’ Provident Fund Organisation (EPFO) is planning to restrict pre-mature withdrawals and hold back at least 10 per cent of contribution till the member reaches the age of 50.
The issue is understood to have been discussed at a recent meeting by Central Provident Fund Commissioner KK Jalan, where he directed officials to draw up a plan to discourage pre-mature withdrawal from the provident fund.
“The employees’ complete balance should be permitted for final withdrawal only on superannuation or on other special contingencies so identified. For taking care of other contingencies of the members during the service history, the facility of part-withdrawal can be revised,” he said, according to the minutes of the meeting.
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