Lok Sabha Question No. 146 (UNSTARRED), answered on 2019-02-04
Subject: Change in the Rules for Withdrawals from PF
Ministry: LABOUR AND EMPLOYMENT
Asked by: PONNUSAMY VENUGOPAL

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 146 TO BE ANSWERED ON 04.02.2019

## CHANGE IN THE RULES FOR WITHDRAWALS FROM PF

146. DR. P. VENUGOPAL:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether  the  Employees  Provident  Fund  Organization  (EPFO)  has given/proposes  to  give  its  members  an  option  to  withdraw  75  per cent of their funds after one month of unemployment and keep their
- PF account with the EPFO and if so, the details thereof;
- (b)whether  the  EPFO  has  changed/proposes  to  change  the  rules  to
- make withdrawals easier; and
- (c)if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

- (a): Yes, Madam. The Government vide Notification No. G.S.R.1182(E) dated 6 th  December, 2018 has amended the Employees' Provident  Funds  (Amendment)  Scheme,  2018  by  inserting  paragraph 68HH which permits a member on ceasing to be an employee in any factory or establishment, a non-refundable advance upto 75 per cent of the  total  provident  fund  standing  to  his  credit,  if  he  has  not  been employed  for  30  days.  Such  a  subscriber  would  continue  to  be  a member of Employees'  Provident  Funds  (EPF)  Scheme,  1952  without closing  the  Provident  Fund  (PF)  account.  Further,  it  would  enable  a member  to  avail  pensionary  benefits.  Thus,  an  additional  social security cover has been provided to the EPF subscribers.

Contd..2/-

The newly inserted paragraph is, in addition to, paragraph 69(2)  of  EPF  Scheme,  1952  by  way  of  which  an  employee  may withdraw full amounts standing to his credit provided he has not been employed  for  a  continuous  period  of  not  less  than  two  months immediately preceding the date on which he makes an application for withdrawal.

- (b) & (c): The  following  initiatives  have  been  introduced  to  make withdrawals easier:-
- i) Employees'  Provident  Fund  Organisation  (EPFO)  has  allotted  a twelve  digit  permanent  number  to  its  members  called  Universal Account  Numbers  (UAN).  This  UAN  will  help  consolidation  of previous PF accounts and portability in case of change of employment. A single page Composite Claim Form (CCF) has been introduced  for  withdrawals  by  replacing  the  erstwhile  multiple Claim Forms No. 19, 10C and 31.
- ii) A member is no longer required to submit documents e.g. Medical Certificate  and  may  only  self-certify  to  avail  withdrawals.  The requirement to affix revenue stamp on claim forms has been done away with.
- iii) Online Transfer Claim  Portal  (OTCP)  has  been  introduced  to facilitate seamless transfer of claims.
- iv) The entire  payment  to  subscribers  is  done  electronically  through National Electronic Funds Transfer (NEFT) system.

The  subscribers  have  been  given  an  option  to  submit  claims through online mode.  The services of EPFO for subscribers have also of been integrated and offered through UMANG application Government of India.

*******