EPFO to remove wage and headcount limit: Employees’ Provident Fund Organization (EPFO) is now going to change the rules to secure the future of the low-salary employee class. EPFO is preparing to remove the limit on salary and employee number with the intention of giving benefits of pension scheme to those getting less than the prescribed salary limit. In this regard, EPFO has sent information to the stakeholders and states for consideration.
According to the Employees’ Provident Fund Organization, under the current rules, only those employees whose salary is more than 15,000 have the right to join the pension scheme. At the same time, only the company which has more than 20 employees is allowed to join the EPF scheme. With these rules EPFO currently has more than 55 million subscribers.
The Employees’ Provident Fund Organization is contemplating to change the rules and obligations under the EPF and Miscellaneous Provisions Act 1952. To give convenience to those doing their own business, EPFO also wants to make the rules flexible so that such people can also be added to the pension scheme and they can also get its benefits.
The senior official said that to give the benefit of EPFO’s pension scheme to the employees of every salary category, it is being considered to eliminate the requirement of 15,000 salary. Apart from this, preparations are on to bring their own business or self-employed people under the purview of the scheme. Along with this, the limit of more than 20 employees on companies is also being considered to be removed.
The Employees’ Provident Fund Organization (EPFO) has sent information regarding this change to the stakeholders and the states for consideration. It is believed that the employees are going to get maximum benefits if this change process of EPFO is implemented. EPFO anyway works only to secure the future of the employees and this step will prove to be a big one. At the same time, the equity investment prospects of EPFO will also get a boost.
