EPFO Rule Change:
The recent changes in the Employees’ Provident Fund Organisation (EPFO) rules have sparked strong criticism from opposition leaders. They say that the new rules are unfair to salaried employees and will create more financial trouble for people who lose their jobs.
According to the new rules, a person who becomes unemployed can withdraw money from their Provident Fund (PF) account only after 12 months, instead of the earlier 2 months. For pension withdrawals, the waiting period has been extended from 2 months to 36 months. In addition, 25% of the total amount in an employee’s PF account will remain locked until retirement and cannot be withdrawn.
Congress MP Manickam Tagore called the decision “cruel” and said that the government is punishing people for needing access to their own savings. He stated that people who lose their jobs still have to pay bills, loans, and other expenses, and this rule makes their lives harder.
Tagore also said, “This is not reform; this is robbery. The government is blocking people from using their own money while helping big businessmen.” He urged Prime Minister Narendra Modi to immediately step in and cancel these rules introduced by Labour Minister Mansukh Mandaviya.
TMC MP Saket Gokhale also strongly opposed the new policy. He called it “open theft” of salaried people’s money and said that the government is acting like it expects unemployment to rise. “The new EPFO rules show panic. Instead of helping workers, the government is locking their savings,” he said.
Congress spokesperson Shama Mohamed also demanded a rollback. She said the rules were introduced in the name of simplification but are actually taking away the rights of the middle-class workers.
The Labour Ministry has said that the decision was taken to improve social security and encourage workers to keep their PF accounts active even after losing jobs. Officials explained that many employees stop contributing after two months of unemployment, which affects their future pension benefits.
However, the opposition insists that the new rules will only add to the struggles of jobless people and should be withdrawn immediately.
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