On Monday, around 15,000 women garment workers staged a massive demonstration on the outskirts of Bengaluru, protesting change in the Provident Fund Act, which denies the right to withdraw employer’s contribution till the subscriber reaches 58 years.
Advertisement
The EPFO had also restricted withdrawal of PF to the employee’s own contribution and interest earned on that, if the claimant has remained unemployed for more than two months.
Earlier in the day in New Delhi, the Minister had said, “The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016”.
Earlier in a notification dated 10th February 2016, Union Government had brought in some restrictions on withdrawal from EPF Funds by the members. People have also launched online campaign against the decision.
Under attack from political opponents and pressure from trade unions, including from the RSS’s Bharatiya Mazdoor Sangh (BMS), the government on Tuesday went on the backfoot and deferred till July 31 its decision to bar provident fund withdrawals for housing, medical treatment and marriages of children. “But after receiving requests from various stakeholders, we have made a decision to withdraw the new rules and follow the existing system”, said Dattatreya.
There are approximately over 12 lakh garment factory workers in Bengaluru, the city police chief said.
Discontent has brewed ever since the government announced its decision in February to put curbs on withdrawal from the retirement fund, a major source of instant money for the five crore-odd PF subscribers. The labour ministry has sent the matter for Union law ministry’s approval.
Sources said the government’s rollback decision will be ratified at a meeting next month of the central board of trustee of the Employees Provident Fund Organisation (EPFO), the government body which manages the funds. The member would be able to withdraw employer’s contribution on maturity. They would have to wait till attaining the age 57 years.
Advertisement
Earlier norms used to allow subscribers to claim 90 per cent of their accumulations for investing in the scheme after attaining the age of 55 years.
