As the purpose of EPF account was getting derailed due to the relaxation to withdraw 100% of the balance amount on being jobless. Now a new notification, which makes restriction on EPF withdrawal to 75% in case of a subscriber who is still not retired or attained 60 years of age. And it was possible for an individual who remained without job for continuous 2 months.
But in a notification dated December 6, Employees' Provident Funds (Amendment) Scheme, 2018 said, "The commissioner or, where so authorised by the commissioner, any other officer subordinate to him, may permit a member, on ceasing to be an employee in any factory to establishment to which the Act applies, a non-refundable advance upto 75% of amount standing to his credit in the fund, if he has been employed in any factory or other establishment for a continuos period of not less than one month".
Employees' Provident Fund Organisation (EPFO) manages social security funds of workers in the organised and semi- organised sectors. The retirement fund has more than six crore active members.
While an employee, earning upto 15,000 a month, contributes 12% of the basic pay to EPF, the employer contributes 8.33% towards employees' pension scheme and 3.67% to the EPF. Interestingly, the employer also pay 0.5% towards Employees' Deposit-linked Insurance (EDLI) Scheme, 0.65% as EPF A/Cs and 0.01% as EDLI handling fee, taking the total contribution to 13.61%.