The Opposition has criticized the Modi government for altering EPFO regulations, claiming that salaried individuals are being penalized for the government’s economic mismanagement. They called on Labour and Employment Minister Mansukh Mandaviya to eliminate what they termed ‘draconian’ measures. The primary focus of their discontent is the extension of the waiting period for accessing premature final settlement of EPF, which has increased from 2 months to 12 months, and the final pension withdrawal period, now extended from 2 months to 36 months. Furthermore, a requirement has been introduced mandating that 25% of contributions in members’ accounts be maintained as a minimum balance at all times.
Congress MP Manickam Tagore described the new EPFO regulations as ‘cruelty,’ stating that pensioners and those who have lost their jobs are being punished for needing their own savings. He urged Prime Minister Narendra Modi to intervene and halt Mandaviya’s actions that could adversely affect people’s lives. Tagore outlined the consequences of the new rules, emphasizing that individuals can only access their PF after 12 months of unemployment—up from 2 months—and that pension withdrawals are now only allowed after 36 months of unemployment, as opposed to 2 months. He expressed concern that 25% of an individual’s EPF would remain inaccessible indefinitely.
Tagore pointed out that such measures do not benefit workers, particularly in times of job loss or retirement, while the government appears to favor its allies. TMC MP Saket Gokhale echoed these sentiments, labeling the new EPFO rules as ‘shocking and ridiculous.’ He described them as a blatant theft of workers’ funds, emphasizing the extended waiting periods for accessing EPF balance and pension funds. Gokhale questioned how individuals, particularly those facing layoffs, are expected to manage their financial obligations while being unable to access their own savings for a year and only partially thereafter.
He argued that these regulations reflect a government in panic, attempting to stave off a run on the EPFO amidst rising unemployment due to poor economic policies. Gokhale urged Mandaviya to promptly revoke these new EPF rules.