Provident Fund Scheme
Changes to rules relating to the Provident Fund Scheme: In India, employers and employees are required to make contributions to a compulsory contributory Provident Fund Scheme. As of December 1, 2015 employees can now withdraw their accrued provident fund contributions without having to get the approval of their employer. Withdrawal is done through an online application process.
Although the change was introduced at the start of December 2015, the effect of it will be more apparent in 2016.
Action required: Inform staff of the change, and train them on the need to link their personal bank account and address with the Provident Fund Universal Account Number. There is a process that needs to be followed in order to do this. Employers should set an internal timeline for the employees to complete the link process.