There is good news for crores of people doing private jobs. Now even if you work for less than six months, you will be able to withdraw the entire amount deposited in EPF. For this, the Employees Provident Fund Organization (EPFO) has changed the rules.
People doing private jobs will get the benefit of this. Especially those people who keep changing jobs. For this, the government has changed the rules of Employees Pension Scheme (EPS), 1995. The government has given information about this change on June 26. What is this change, how will it benefit, who will get its benefit? Let’s try to know the answers to these questions.
Understand what this change is like this
Every month , an employee’s money goes to EPF in two ways. Every month 12 percent of his basic salary goes to the Provident Fund ( PF ). Every month the employer (company) also contributes the same amount. But, 8.33 percent of the employer’s total contribution goes to the Employees’ Pension Scheme ( EPS ) and 3.67 percent goes to PF. Till now the rule was that if an employee leaves a company’s job before six months, then he will not get the money deposited in the Employees’ Pension Scheme ( EPF ). After the change in the rule, even if the employee leaves the job before 6 months, he will get the money deposited in EPS.
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What used to happen earlier?
Earlier, if an employee left the job before six months, he would only get the money deposited in EPF. He would not get the money deposited in EPS. Now, even if he leaves the job before six months, the employee will get the money deposited in EPF and EPS. It is believed that more than 7 lakh employees will benefit from this change in rules every year. According to the information given by the Labor Ministry, it has been observed that every year more than 7 lakh employees leave their jobs before the completion of six months. Till now, their money deposited in EPS used to get wasted.
Know what the amendment in Table D means?
EPFO has made another big change. It has amended Table D. This will give the benefit of every month completed in the job to an EPS member on withdrawal. In a release issued by the government, it has been said that now the amount of withdrawal benefit will depend on the total number of months the employee has worked. Also, on the basis of which wage his contribution has been made to EPS. According to an estimate, more than 23 lakh employees will get the benefit of this change in the rule. Under the EPS rules, at least 10 years of service is necessary for pension. Till now the withdrawal amount was calculated on the basis of the completed years of job.
