2016-05-19-KPMG_Global-India_–_Restrictions_Placed_on_Early_PF_Withdrawals_Now_Rescinded_2页_64kb

India Withdraws Early Provident Fund Withdrawal Restrictions

Overview

The Indian government rescinded a notification dated February 10, 2016, that had imposed restrictions on early withdrawals of full Provident Fund (PF) balances. This change took effect with a circular issued on April 19, 2016.

Key Changes

• Non-International Workers: Can now withdraw their full PF accumulated balance if they cease employment and are not re-employed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, for a continuous period of at least two months.
• International Workers with SSA: Covered under effective Social Security Agreements continue to receive full refunds upon employment cessation.
• International Workers without SSA: Still ineligible to withdraw full PF accumulations before reaching age 58.

Background

The restrictions were introduced by a prior notification, and this rescission restores earlier withdrawal provisions.