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(adsbygoogle = window.adsbygoogle || []).push({}); After Protests in India, Government Withdraws New Provident Fund Rules - Algeria latest news

Confronted by protests - including a riot in Bengaluru that saw buses and police jeeps set on fire - the government has put on hold for three months controversial new rules on when you can withdraw money from your provident fund, which serves as a savings plan for when salaried workers retire.

Here is your 10-point cheat-sheet to this story:

1) In February, the government said that to claim or withdraw what your employer has deposited for you, you must wait till you turn 58 (the age limit was earlier 54). The new rule has been suspended till at least the end of July, the government said today.

2) "The notification (tightening PF withdrawal norms) will be kept in abeyance for three months till July 31, 2016. We will discuss this issue with the stakeholders," Labour Minister Bandaru Dattatreya told reporters.

3) Once you are hired, a portion of your salary with a matching amount from your employer is automatically deposited in an account that earns interest.

4) To withdraw what you have contributed, you need to be 58 years old, which is the official retirement age in India.

5) Many labour unions said that workers in some sectors -garment factories, for example - are unsure of being employed after they turn 50; so making them wait till they are 58 to collect what employers have contributed for them does not make sense.

6) In Bengaluru, thousands of garment factory workers set buses on fire and clashed with the police on major highways on the outskirts of the city.

7) In his Union Budget presented in February, Finance Minister Arun Jaitley announced that 60 per cent of the amount in your provident fund would be taxed when the account was emptied out or when you cashed in what you had saved.

8) After outrage from the middle class, that plan was cancelled.

9) Now, the government is considering whether you should be allowed to withdraw the entire savings accumulated in your provident fund for a fixed set of criteria like medical treatment for a serious illness, a home purchase, or the education or marriage of an employee's children.

10) Workers who have been unemployed for two months have till the end of July to claim the entire amount accrued in their provident fund.

Tag(s) : #Asia-Pacific

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