Centre cancels new PF rules after protest

The Labour Ministry cancel the February 10 notification which put restrictions on 100% withdrawal from the provident fund (PF) account. 

The employees can now withdraw 100% amount from their account, if they are continously unemployed for 60 days. The amount will include contributions from the employee and the employer, and the interest accrued on them. 

“The notification issued on February 10 is cancelled. Now the old system will continue,” PTI quoted Labour Minister Bandaru Dattatreya as saying at a press conference in Hyderabad.

The February 10 notification had put restrictions on the withdrawal of PF amount to the



contribution of employee along with the interest accrued on his/her contribution. According to the notification, the employer’s account could only be withdrawn after attaining 58 years, the retirement age.

The February 10 notification was under attack from trade unions from the beginning. The notification was published in the gazette on February 26 and created technical problems.

The ministry decided to implement it from May 1 but deferred the it by three months, till July 31. 

The trade union activists were already campaigning online against the new rules and the violence in Bengaluru forced a complete withdrawal of the notification.