The Central Provident Fund Commissioner has directed the field offices of EPFO to generate and reconcile pensioners' details and pension amount statements for the current month by 25th March 2020.
Retirement fund body EPFO on Monday said it has issued directions for timely credit of monthly pension to over 65 lakh employees' pension scheme (EPS) beneficiaries amid the coronavirus outbreak.
Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar on Thursday. The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body -- the Central Board of Trustee.EPFO slashes interest rate on deposits to 8.5% for FY20
As per the announcement, due to pandemic situation, the government will amend Employees Provident Fund withdrawal rules and also, will pay both employer and employee contrition to the EPF account for the continuity of the account for the next three months.
The EPFO is considering a cut of 15 basis points in the interest rate on PF deposits in FY20 to 8.5%.
The proposed rate is 15 basis points lower than 8.65% announced for FY 2018-19. The finance ministry will have to vet the interest rate of 8.5% agreed upon by CBT before it is notified by the labour ministry.
The interest rate is a big sentiment booster and any cut may further hit the employee sentiment.
EPFO has instructed field offices to expedite disposal of online requests, enabling PF members in financial distress, to apply online for availing non refundable advance from their provident fund accumulations to tide over the COVID-19 pandemic.
The move, which comes 10 years after the provision was withdrawn, follows a decision at a recent meeting of the EPFO’s central board of trustees and will benefit around 630,000 pensioners.
"In view of government of India guidelines to contain spreading of COVID-19, Employees’ Provident Fund Organization (EPFO) advises it members, pensioners and employers to avail various online services offered by EPFO, from the comfort of their homes, and to avoid visiting EPFO offices," the Employees Provident Fund Organisation said in a statement on Friday.
A senior government official told ET that lower contribution rule under PF will not apply to all.
Employees' Provident Fund Organisation (EPFO) is undertaking several digital initiatives including online Universal Account Number (UAN) generation facility for subscribers and e-inspection system for employers.
This will be applicable for establishments with up to 100 employees, where 90% of employees drawing less than Rs 15,000 salary. Benefiting 4.8 crore employees the govt also amended EPFO regulations to allow workers under EPFO to draw up to 75% of their non-refundable advance or 3 months of wages, whichever is lower.
The staffing federation has written to labour ministry last week asking them to re-look into the issue.
“The number of active members under EPFO, at present, are 4,50,60,972 (contributing UANs of last three wage months viz. August, 2019 to October, 2019)," said labour and employment minister Santosh Kumar Gangwar .
"As part of the ongoing efforts to improve India’s ranking in the doing business report 2021, ministry of labour and employment has completed the reform to integrate process of registration for GST, EPFO, ESIC and profession Tax for Maharashtra with company incorporation” in tandem with the MCA," labour ministry said in a statement.
To log in to your account on the EPFO portal, it is important that your UAN is active. Once your UAN is activated, an SMS will be sent on your mobile number containing the password to login to the EPFO portal account.
The number of accounts added by the government-managed pension fund during April-December 2019 was higher compared with the 6,112,223 accounts added in the entire fiscal 2018-19. However, the number of new employees added in December fell marginally to 1,008,600 from 1,162,863 in November.
At present, workers are required to apply through their employers to get the universal account number (UAN), which enables them to avoid filing PF transfer claims on changing jobs. Now they do not have to depend on his or her employer for getting the UAN. The UAN remains the same throughout the life of a worker.
The government has recently amended the EPF withdrawal rules which allow an EPF member to withdraw money in case of emergency due to COVID-19.
EPFO is seeking employment of 187 stenographers at Level 4 pay scale, to be revised for 30% of stenographers to Level 6 on completion of five years of regular service. As per the notification, the central board in consultation with the central government may relax any of the provisions of these rules with respect to any class or category of persons.
Long-term investors hold tier-II bonds worth more than Rs 22,000 crore in Yes Bank
An advance under the amended paragraph can be sought through the same process by which all other advances are granted. No separate procedure is prescribed. Members can apply online.
EPFO proposed to amend the Act to limit enquiry period to a maximum of two years in order to curtail harassment.
The government asked public and private establishment employers not to cut salaries or lay off employees during the coronavirus pandemic.
The employer is liable to pay interest of 12% per annum for every day that there is a delay in payment into the EPF account. Besides, there is a penalty of 5-25% per annum for delays ranging from up to two months to more than six months.
EPFO has launched an online facility where EPF account holders can update the exit date in the records.
The move would benefit the pensioners who had opted for commutation and got a lump-sum amount at the time of retirement before 2009.
The appointment of the fund managers for another term of three years had been pending with the EPFO since April last year.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65 per cent for 2018-19.
Labour Minister Santosh Gangwar on Tuesday said over 6 crore EPFO members will get 8.65 per cent interest on their deposits for 2018-19. The Central Board of Trustees -- the apex decision-making body of the Employees' Provident Fund Organisation (EPFO) -- had approved 8.65 per cent interest rate for the last fiscal in February this year. The proposal was sent for the concurrence of the finance ministry.Over 6 crore EPFO members will get 8.65% interest for 2018-19: Labour minister Gangwar
"...ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19," said Labour Minister Santosh Gangwar.
Remember this decision of EPFO is applicable to only those pensioners who are covered under the Employees' Pension Scheme, 1995, i.e. non-government pensioners covered under Employees Provident Fund Scheme during their working years.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts at a higher rate of 8.65 per cent for 2018-19.
The Employees' Provident Fund Organisation (EPFO) announced on its Twitter handle that the Pension Payment Order (PPO) number and Universal Account Number (UAN) are now available on the government's e-locker service DigiLocker.
Speculations are rife that the interest rate on EPF may be lowered to 8.5% for the current fiscal, a tad lower than 8.65% provided for 2018-19. As per sources, the agenda for the CBT meeting has not yet been finalised and it is difficult to predict EPFO's income projections for the current fiscal, which will be the basis for fixing the rate.
The ministry’s proposal to corporatise the EPFO had faced severe criticism. In its latest draft code released in September, it had proposed a corporate structure to be headed by a CEO.
The finance ministry has objected to the proposal for increasing the payout for 2018-19 to 8.65% from 8.55% and sought a review. EPFO has cited adequate reserves to counter the objection.
The move is expected to benefit 630,000 pensioners and substantially increase pensions for those members of the Employees Provident Fund Organisation (EPFO) who retired before September 26, 2008 and had opted for partial commutation of pension. This will benefit such employees as it will lead to restoration of full (higher) pension after 15 years.
The report also showed that during the September 2017-December 2019 period, around 3.50 crore new subscribers joined the ESIC scheme. The NSO's report is based on the payroll data of new subscribers of various social security schemes run by ESIC, retirement fund body EPFO and the Pension Fund Regulatory and Development Authority (PFRDA).
In February, the Central Board of Trustees, headed by the labour minister, had decided to raise the interest rate on EPF to 8.65% for 2018-19.
The total backlog or outstanding provident fund dues of EPFO during 2018-19 was Rs 791.63 crore, Labour Minister Santosh Gangwar said in a written reply to the Rajya Sabha.
The Employees' Provident Fund Organisation (EPFO) is investing in ETFs (Rs 86,966 crore) based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices. Labour Minister Santosh Gangwar told the Lower House that the EPFO does not invest in shares and equities of individual companies.
Labour laws codifications has given flexibility to the govt to notify changes in labour laws as per requirement.
The ED had earlier raided the premises of Singh and recovered Rs 10.60 lakh cash, gold and diamond jewellery worth Rs 27 lakh apart from documents relating to fixed deposits, postal deposits and immovable properties.
Labour and Employment Minister Santosh Kumar Gangwar told the House that the ministry is progressively reviewing and streamlining policies and procedures in relation to disposal of public grievances. The grievances include those related to EPFO, ESIC, Chief Labour Commissioner (Central).
The National Pension System (NPS) is a voluntary, defined contribution programme administered and regulated by PFRDA.
Officials argue that monthly contribution to EPS is too low and will not be able to sustain higher pension.
With the help of the new form, which is to be rolled out on February 15, the government hopes to reduce the time taken as well as the cost for registering a company that was estimated at around 4 hours in December-January.
The Finance Ministry and board of regulators have given an in-principle nod to the proposal. Once the PFRDA Act is amended, it could give powers to the regulator to manage the handling of NPS trust to the government.
The hike in investment to state government bonds could also be on account of a flight to safety from private bonds.
"The pension received from EPFO is taxable under the head salary and it will qualify for the standard deduction. "
The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO).
Standalone PFs are estimated to have IL&FS investment in the range of Rs 15,000-20,000 crore, ET reported on January 16.
These will be Group-B non-ministerial role position and anyone below 30 years of age can apply for the post.
The addition in Jan was 131% higher as compared with 3.87 lakh EPFO subscribers added in the year-ago month.
This would lead to greater transparency and enable the pensioners to detect errors in calculation, if any and get them corrected faster.
The proposal to increase the superannuation age is expected to help a beneficiary grow his/her pension kitty.
The NHAI is in talks with EPFO, which is looking to invest longterm funds in the road sector, two people aware of the matter said.
The apex court in its judgement has ruled that special allowance is part of the basic wages for computing the employees provident fund (EPF).
While the EPFO data suggests that annualised new enrolments could be 106.2 lakh crore for FY’20, the SBI research team calculations show that actual annualised net new payroll could be 73.9 lakhs, about 21 per cent or 15.8 lakh lower than actual net new pay roll generated in FY’18.
At present, 75 per cent of the funds are allocated to Nifty and rest to the Sensex.
The board has approved EPFO’s exit from DHFL to retrieve its money for workers’ welfare.
"The interest rate would be retained at 8.55 per cent for the current fiscal as provided in 2017-18 in view of forthcoming Lok Sabha elections," the source said.
There are a few reasons for the rising interest of institutional investors in ETFs.
Going forward, the pension may be calculated on the basis of average salary of last 12 months.
Now the proposal finalised would be placed before the EPFO’s apex decision-making body Central Board of Trustees.
As per the unified portal of EPFO, if you wish to file an online claim for your EPF, then you have to mandatorily link your UAN with Aadhaar.
A decision to start operations in Jammu, Kashmir and Ladakh was taken at the 225th meeting of the Central Board of Trustees of EPFO.
Earlier in February, the Central Board of Trustees had decided to raise the interest rate on EPF to 8.65 per cent for 2018-19.
The EPFO is developing a software that will show savings in cash and ETF components separately.
Sebi, the market regulator, constantly forms and amend laws to protect retail investors.
Gross enrolments of new subscribers with ESIC were 1.49 crore during the entire financial year 2018-19, the National Statistical Office (NSO) said in a report. It also showed that during the September 2017-October 2019 period, around 3.22 crore new subscribers joined the ESIC scheme. The report showed that gross new enrolments with ESIC during the September 2017-March 2018 period were 83.35 lakh.
The move, once approved by the finance ministry, will benefit six crore EPFO subscribers.
The Supreme Court's decision has come in the wake of the special leave petition filed by the EPFO against Kerala High Court judgement.
Under the plan, executive functions of the EPFO would be moved to state social security boards.
EPFO is warning members via its website and social media handles regarding fake phone calls and is also advising them not to share personal details like PAN, Aadhaar, bank account or EPF account details like Universal Account Number (UAN).
This has been done to smoothly implement the orders of the SC on paying pension to employees on the basis of higher contributions made earlier on the basis of actual salary.
At present, the EPFO's 75 per cent ETF investments are handled by SBI Capital, while remaining 25 per cent is managed by UTI Mutual Funds.
The apex court in its judgement has ruled that special allowance is part of the basic wages for computing the employees provident fund (EPF).
Since public holdings, including those of LIC of India, were about 40% in IL&FS, the pension fund subscribed to the bonds.
Around 73.50 lakh new subscribers were added to social security schemes of the EPFO from September 2017 to November 2018, the data showed.
EPFO subscribers won't require to file provident fund claims from next fiscal when they change jobs.
New Bill gives employees option to reduce their PF contribution, resulting in higher take-home pay.
In the past, cross investments by asset managers has led to value erosion.
The govt has promulgated the Unregulated Deposit Schemes Ordinance 2019 to curb ponzi schemes that dupe people.
The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) has recommended increasing the interest rate on Employees' Provident Fund for 2018-19 to 8.65% as against 8.55% in the preceding year. The move, once approved by the finance ministry will benefit six crore EPFO subscribers.Govt hikes EPF interest rate to 8.65% for FY18-19
The Central Board of Trustees of the EPFO will meet on Thursday to consider the return for the current year besides an increase in the minimum pension for subscribers.
The report of the panel set up by the Employees Provident Fund Organisation (EPFO) was listed on the agenda of its advisory body Finance and Investment Committee (FIC) meeting held on September 19, 2018.
"The standard deduction of up to Rs 50,000 is available for income from salary. "
Labour ministry proposes to hand over reins; dedicated funds for provident fund, pension & insurance schemes to be administered by a Central Board.
In an office order the Employees' Provident Fund Organisation has allowed generation or creation of unique (PF) account number without Aadhaar in Assam, Meghalaya and Nagaland till November 23, 2018.
The new members enrolment in June is the highest so far in the last 10 month at 7,93,308: EPFO
The EPFO had started investing in ETFs in August 2015 with a mandate of investing 5 per cent of its investible deposits in the equity linked scheme.
The EPFO has over 50 million subscribers and all its decisions, including the annual rate of interest on provident fund savings, has to be approved by the CBT.
Risk-averse EPFO subscribers may also get the option to reduce their equity contribution under the plans being considered, said a govt official.
UIDAI distanced itself from the controversy saying the website where the leak happened does not belong to UIDAI in any manner whatsoever.
The Committee is convinced that a strong regulatory system should be in place for all PF trusts.
FCI has appointed about two dozen local arrangers to help raise the money.
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