The government’s notification said from 10 February, 2016, an employee contributing to the Employees’s Provident Fund will not be allowed to withdraw the entire corpus. It basically meant that anyone who has been unemployed for two months or more can now withdraw only his own contribution into the Employees’ Provident Fund and the interest that has accumulated on it.
Further, the second portion i.e. the employer’s contribution to the EPF and the interest accumulated on it can only be withdrawn at the retirement age of 58.
Previously, an employee could withdraw the entire corpus accumulated under the EPF tax free.
Do you think that its a step in the right direction