New Delhi/Bengaluru: Under fire from political opponents and bowing to pressure from trade unions, including from RSS-affiliated Bharatiya Mazdoor Sangh (BMS), the government on Tuesday withdrew its new rules of provident fund withdrawal.
"We're cancelling notification (restricting complete withdrawal of PF) of 10th Feb 2016.... Old system will continue", Union Labour Min B Dattatreya said Tuesday.
A massive strike on Tuesday by thousands of garment workers over restrictions on withdrawal of provident fund (PF) turned violent in Bengaluru, leading to burning of buses, as police caned and arrested many of them.
Police lathicharged and used teargas shells to control the protestsers, affecting normal life in the city.
According to the new rule on the withdrawal of Employees' Provident Fund, beginning May 1, employees won't be allowed to withdraw the entire Provident Fund (PF) amount if they are below the prescribed retirement age (58 years).
The rule states that should the employee withdraw the amount after quitting and remaining jobless for two months, he/she will be eligible to withdraw only the contribution made towards the PF by the employee and the interest earned thereof.
The person, however, won't be able to withdraw the entire amount. He/she will get the employer's contribution only at the age of 58.