Leading trade union warns of impending threat for EPF

“This is best achieved by enacting a separate Act mandating all sectors of employment,” it said in a communication to the National Labour Advisory Council (NLAC) where the matter was discussed last month.

In the state sector, the retirement age is 60 years while in the private sector it is generally 55 years. The government in the 2021 budget proposed that EPF dues removal should be allowed after retirement at 60 years.

The CFL said that it has earlier pointed out that a national retirement age and a universal old age pension to go with it will be recognised by all as an acceptable strategy to raise the retirement age of the employed.

It is submitted that any other course will not bring the desired benefit to those who do not enjoy the facilities under the EPF Act. The number falling into this category is quite large and they will stand discriminated against leading to social unrest.

“By our letter dated December 10 we urged the Labour Minister that any action that he contemplates to amend the EPF Act should not be prejudicial to the interests of members who are entitled to certain benefits as per Section 23 of the EPF Act and that existing employees be exempted making it only applicable to new employees or at least provide with an option to retire and withdraw their balances at their presently recognised retirement age.

This has been made necessary as the COVID-19 pandemic has made many businesses shed labour and left many older workers in dire straits requiring early access to their retirement funds,” the letter said.