News Highlight
New EPFO guidelines help illuminate procedures and required documents for existing employees and those who have retired after September 1, 2014.
Key Takeaway
- The Employees’ Provident Fund Organisation (EPFO) has set new guidelines for employees and pensioners for higher pensions.
- The new guidelines allow employees to deduct a sum equal to 8.33% of the actual basic salary towards the EPS.
- Actual basic pay is Basic pay + DA
- It helps to accumulate a larger corpus and receive a higher pension amount.
Employees’ Provident Fund Organization (EPFO)
- About
- It is a statutory body formed under the Employees’ Provident Fund and Miscellaneous Provisions Act 1952.
- The Act’s Schemes are overseen by a tri-partite Board known as the Central Board of Trustees.
- It comprises representatives from:
- The Government (Central and State)
- Employers
- Workers
- In addition, the EPFO assists the Board.
- It is managed by the Government of India’s Ministry of Labour and Employment.
- Regarding customers and the volume of financial transactions handled.
- Furthermore, it is one of the world’s largest enterprises.
- Features
- EPF i Grievance Management System (EPFiGMS) is a bespoke EPFO platform designed to remedy issues about EPFO services.
- Grievances can be submitted at any time and will be directed to the appropriate office.
- In addition, it also oversees social security treaties with other countries.
- In nations where bilateral agreements have been made, international workers are protected by EPFO plans.
- To enable Provident Fund number portability, the Government of India launched a Universal Account Number for EPFO employees.
- Furthermore, a 12-digit number is assigned to employees who contributed to EPF and generated by EPFO for each PF member.
Schemes Offered Under the EPFO
- Employees Provident Funds Scheme 1952 (EPF)
- Employees’ Pension Scheme 1995 (EPS)
- Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)
Employee Provident Fund (EPF)
- Eligibility
- Salaried employees earning less than Rs.15,000 per month must enrol for an EPF account.
- According to the law, an organisation with over 20 employees must register for the EPF system.
- Organizations with fewer than 20 employees can also voluntarily join the EPF plan.
- Workers earning more than Rs.15,000 can also open an EPF account.
- However, they must first obtain permission from the Assistant PF Commissioner.
- Furthermore, the EPF system’s provisions are available to India’s entire country.
- Except for the state of Jammu and Kashmir.
Employee Pension Scheme (EPS)
- Eligibility
- You must be an EPFO member.
- For an early pension, you must be 50 years old.
- In addition, for a regular pension, you must be 58.
- If you postpone your pension for two years (until you reach the age of 60).
- Additionally, you will be able to receive an additional 4% every year.
- At least ten years of service are required.
Pic Courtesy: The Hindu
Content Source: The Hindu