But, according to The Business Standard, concerned with the high level of PF withdrawals, the Employees’ Provident Fund Organisation (EPFO) is proposing to introduce caps on the amount that can be withdrawn before retirement. The retirement fund body has reportedly proposed that it’s over five crore members be allowed to withdraw only 60 per cent of their total savings or an amount equivalent to three months’ salary – whichever amount is lower – if they are unemployed for one month.
The proposal adds that should a subscriber be unemployed for more than three months, he/she will be eligible to withdraw 80 per cent of his/her PF savings or an amount equivalent to two months’ salary, again the lower of the two. The report claimed that the move is aimed at creating a social security cover for formal sector workers.
Source: Business Today