Big news for EPFO members : Friends, there can be a big change in the rules of Employees’ Provident Fund Organization (EPFO), so this is a big news for about 6 crore EPFO members of the country. The Modi government can separate the provident fund and pension accounts of the employees to protect the monthly pension payment under the EPFO, because when the employees withdraw their PF money after leaving the job, they also withdraw the pension fund money along with it.
PF Account Includes EPF And EPS Account
If 20 or more than 20 employees are employed in an organization, then it comes under EPFO and all those employees whose basic salary is less than ₹ 15000, their PF contribution is deposited. 12% of the basic salary of the employee is deposited in his PF account, whereas out of 12% deposited by the employer, 3.67% is deposited in the PF account of the employee and 8.33% in the pension account. This means that the employee has both provident fund and pension account in one PF account.
Purpose Of EPF And EPS Account
The government provides the benefits of provident fund and pension scheme to the employees from EPF and EPS account. The purpose of the EPF account is to make the employees financially strong, from the EPF account, the employees can withdraw the full and final PF after working or leaving the job and fulfill their financial needs, but the purpose of this account is to provide the employees To provide security to their future after retirement, so that they continue to get a fixed amount in the form of monthly pension after retirement.
Big News For EPFO Members: Why Will PF And Pension Account Be Separate?
The pension fund is secured for the future of the employees after their retirement, while the employee withdraws the pension fund money along with the PF fund after leaving the job. According to the government, this defeats the purpose of retirement pension benefits provisions, so there should be two separate accounts in PF and pension schemes, although the employee can withdraw money from his PF fund while working or leaving the job but pension accounts should ideally be kept insulated.
A news agency reported that the matter was discussed in a board meeting earlier this year after an internal government panel advised segregation of EPF and EPS accounts and as the Covid- The second wave of 19 will end, more action will be seen on this front.
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