Bengaluru: Bowing down to mounting pressure, following widespread protests over new PF policy, the Central government has decided not to implement fresh EPFO rules till August 1.
Union minister Ananth Kumar making a statement after protests turned violent across Karnataka, said, “The Labour minister has decided to call a meet of CBT Board. There will be no change in the EPFO rules till August 1. Old rules will be in place till the further orders.”
“We have decided to cancel the February notification (tightening PF withdrawal norms)…the old system will continue,” Union labour minister Bandaru Dattatreya said here this evening, a day after the government decided to defer its implementation till August 1.
Sources said the government’s rollback decision will be ratified at a meeting the Central Board of Trustee of the Employees Provident Fund Organisation (EPFO), the government body which manages the funds.
The government had spoken about its decision to bring in new norms in February that intended to put curbs on withdrawal from the retirement fund, a major source of instant money for the five crore-odd PF subscribers.
In its notification issued in February, the labour ministry restricted 100 per cent withdrawal by members unemployed for two months or more. Instead, individuals will be able to withdraw only their contribution to the fund and the interest earned on it, and not the employer’s contribution.
The rules also barred subscribers from claiming PF before turning 57.
As per the earlier norms, subscribers were allowed to claim 90 per cent of their accumulations in their PF account at the age of 54 years and their claims were settled just a year before their retirement.
Meanwhile, Chief Minsiter Siddaramaiah has convened a meeting at his residence to check the law and order situation in the city. Home Minister G Parameshwara, K J George, Kimmane Rathnakar and MLC Ugrappa attended the meet.
Home Minister G Parameshwara has urged the protesters to cancel the protest. “Destruction of public property is not correct. They should come forward for talks,” he said, promosing action at the earliest.
The garment industry and other private company workers’ protest over Central government’s new Provident Fund (PF) policy which entered the second day on Tuesday, April 19 turned violent as agitators resorted to stone pelting and burnt several buses in Bengaluru.
They torched five buses and a police station. They also blocked highway which stalled vehicluar movement for hours.
The protesters are demanding changes in the new policy as they fear that they would be under loss as per the new rules in which people can withdraw only a part of their provident fund before retirement and can access the employer’s contribution only after they are 58. The protesters also said that many of them are unsure of staying in government jobs till they are 58, and need financial security.
