Hot Off The PressNews

As reported by money control, Ministry of Labour and Employment has recommended reducing the contribution made by employees towards the Employees’ Provident Fund (EPF).

Presently, the mandated EPF contribution is 24 percent of basic pay, divided equally between employers and employees. The above-made suggestion is a part of the proposed Employees’ Provident Fund and Miscellaneous Bill, 2019.

It has been stated that once there would be a reduction in worker’s contribution to the Employees’ Provident Fund (EPF) it would result in the improvement of their in-hand-salaries.

Another proposal is allowing employees to switch between the Pension Fund Regulatory and Development Authority-run National Pension Scheme (NPS) to the Employees Provident Fund Organisation (EPFO) scheme.

A preliminary draft of the EPF and MP (Amendment) Bill, 2019, dated August 23 has sought suggestions and comments until September 22, 2019.


[Source: MoneyControl]

Hot Off The PressNews

The subscribers of Employees Provident Fund Organisation (EPFO) who resign from their service can now withdraw 75% of their total provident fund after one month from the date of cessation of service to meet their monthly financial commitments. Members will continue to have the choice of withdrawing the entire amount, if they want to close the account, after two months. A decision to this effect was taken at the 222nd Central Board of Trustees (CBT) meeting of EPFO on 27th June.

Moreover, the subscriber may not withdraw the remaining amount, thus ensuring he continues to get social security on the existing account. Currently, the EPF Scheme 1952 allows final withdrawal after two months from the date of cessation of employment of the member, as a result of which many members end up withdrawing the entire amount. This leads to closure of the account and no social security cover for the subscribers. With this new provision, members will now have an option to retain their account with the EPFO, which one can use after finding another job. CBT has also decided to extend the term of SBI Mutual Fund and UTI Mutual Fund, the two fund managers for EPFO investment in exchange-traded funds (ETFs), by one year to July 2019. Their term was due to end on June 30, 2018.

CBT, the highest decision-making body of EPFO, comprises equal number of representatives of employees, employers and state government representatives. It is chaired by the labour minister.

[Source: Economic Times]