After exboritant rise in PF withdrawal, the provident fund body has decided to introduce limit to the withdrawal. Currently, subscribers to the provident fund are allowed to
withdraw 100% of the savings, in case the concern remains jobless for 2 months.
For individuals, the industry body is considering to peg the withdrawal limit to 80% of the savings or nearly two months of the persons salary, which ever is lower in
a case he or she remains without job for two months.
The proposal by the retirement fund body is likely to meet stiff opposition from the stakeholder groups.
The orgnanisation has further proposed that its members will be allowed to withdraw at the maximum 60% of the savings or an amount equivalent to three months' salary i.e whichever is lower in a case if the salaried individual remains unemployed for a month.
In a notification released two years back in 2016 that restricted full PF withdrawal by its members after remaining jobless for over two months was later withdrawn due to excessive opposition from all of the stakeholders including trade unions.