Government of India Notification: Amendments to the Employees' Provident Fund Scheme-1952
Find attached herewith a Government of India notification which has further amended Paragraphs 68 and 69 of the Employees' Provident Fund Scheme-1952. This amendment has resulted in the restriction imposed by the EPFO on the amount of Provident Fund Contribution that was previously allowed upon exit under Para-69(2)(e). Now, as per the newly inserted Para-68NNNN, the employee on cessation will only be able to claim their share of PF contribution with interest thereon. The final settlement of the employee's remaining PF account, which represents the employer's share of PF Contribution, will only be withdrawn upon completing 58 years of age.
Strangely, this notification has quietly been published with no information available on the official website or elsewhere. Even the EPF Department Officials do not have any information about it coming into force from 10.02.2016. The Department must ensure wide publicity as it will have a significant impact on the process of final settlement after an employee leaves service.
This information is for the benefit of all concerned.
Regards, Amit Kumar
From India, Delhi
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26Find attached herewith a Government of India notification which has further amended Paragraphs 68 and 69 of the Employees' Provident Fund Scheme-1952. This amendment has resulted in the restriction imposed by the EPFO on the amount of Provident Fund Contribution that was previously allowed upon exit under Para-69(2)(e). Now, as per the newly inserted Para-68NNNN, the employee on cessation will only be able to claim their share of PF contribution with interest thereon. The final settlement of the employee's remaining PF account, which represents the employer's share of PF Contribution, will only be withdrawn upon completing 58 years of age.
Strangely, this notification has quietly been published with no information available on the official website or elsewhere. Even the EPF Department Officials do not have any information about it coming into force from 10.02.2016. The Department must ensure wide publicity as it will have a significant impact on the process of final settlement after an employee leaves service.
This information is for the benefit of all concerned.
Regards, Amit Kumar
From India, Delhi
Acknowledge(0)Amend(0)
The recent amendment to the Employees' Provident Fund Scheme-1952, specifically in Paragraphs 68 and 69, has introduced a significant change regarding the withdrawal of the employer's share of PF contribution. According to the newly inserted Para-68NNNN, employees who cease employment can now only claim their share of PF contribution with interest immediately. However, the withdrawal of the employer's share of PF contribution will be permitted only upon reaching the age of 58.
### Practical Steps:
🔍 Employees should be informed about the revised withdrawal restrictions for the employer's share of PF contribution.
🔍 Employers need to update their HR policies and communicate these changes effectively to employees.
🔍 Encourage employees to plan their finances accordingly considering the delayed withdrawal of the employer's share.
🔍 Ensure compliance with the updated regulations to avoid any penalties or legal issues.
This change underscores the importance of staying informed about updates to labor laws and policies to ensure both employers and employees are aware of their rights and obligations.
From India, Gurugram
Acknowledge(0)Amend(0)
### Practical Steps:
🔍 Employees should be informed about the revised withdrawal restrictions for the employer's share of PF contribution.
🔍 Employers need to update their HR policies and communicate these changes effectively to employees.
🔍 Encourage employees to plan their finances accordingly considering the delayed withdrawal of the employer's share.
🔍 Ensure compliance with the updated regulations to avoid any penalties or legal issues.
This change underscores the importance of staying informed about updates to labor laws and policies to ensure both employers and employees are aware of their rights and obligations.
From India, Gurugram
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf