Govt allows PF withdrawal for housing, medical expenses
Contributions to provident fund can now be withdrawn for dental and engineering education of children and for their wedding, the labour ministry has said.
In a move that will be a major relief for the several retirees, the government has allowed withdrawal for certain expenses including housing and any major medical treatment for the person or family, a report in a leading daily has said.
This will, however, come into effect from August this year.
The Labour Ministry has eased restrictions on the withdrawal of contribution to the employees' provident fund. Thereby, withdrawal for dental and engineering education of children and their wedding is now allowed, the report said.
The labour ministry said that the government will now pay full accumulations to the credit of a member, including interest up to the date of payment if the withdrawals are being made for any of the aforementioned reasons, according to the report.
The PF withdrawal norms have also been eased for those who have joined an establishment under the central or state government and is a member of contributory provident fund or old age pension, it added.
Earlier this year, the government had said that PF members would now have to wait till they were 58 years old to withdraw their PF amount, against 54 years as was prevalent earlier.