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Wednesday, November 2, 2016

10 changes at Provident fund in last one year has redefined how Provident fund serves Indian work force

Latest – App to check PF balance, regularising inoperative PF accounts, earning 8.8%
As you are reading my article, which is available only for online readers, chances are very high that you can easily trace and access your unclaimed/ inoperative PF accounts. Many a times its sheer inertia, sometimes documentation issues, complication with previous organisation holds many professionals update the PF account when they quit/change jobs. There are other reasons like shifting cities, relocating to different country or death of the account holders of creating a pool of 42,000 crore in 9.7 crore account. I appreciate the move of Government of India to continuing paying interest on these accounts. 

EPF is an important saving cum investment instrument for mre than 10 crore indian employees. With the new rules, employees are benefited for smooth tracking and transactions. A Big Thank you to the Modi Government. It is not all roses without thorns, there were  major retaliation by public on few proposal by government this budget, one was taxation on PF accrued.
I have also not yet forgotten the July 2016 proposal of finance ministry of utilising portion of the funds from inoperative accounts to be utilised in senior citizen welfare schemes. Owing to strong opposition and pressure from labour unions, the government actually did an U-TURN and made it an opportunity by regularising the PF accounts. Not only increasing the social security,  government also managed to garner some popularity of working class vote bank.  

There has been some interesting update on the Employee Provident funds in India during last one year. Listing down some important developments.
  • ·         PF claims in cases of death set to be settled in a week
    ·         PF claim settlement period brought down to 20 days
    ·         EPFO does away with employer’s signature for PF withdrawal
    ·         Employees’ Provident Fund Organisation orders EPF to be released before retirement
    ·         UAN is a must for smooth transfer of Provident Fund
    ·         EPFO to pay 8.8% interest on "inoperative" accounts: Govt to issue notification soon
    ·         Employees’ PF Organisation services soon at 2 lakh common service centres of IT Dept In a move to increase participation in the indian equity market, EPFO has invested over Rs 9000 crore in Exchange Traded Funds
    ·         No tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1.
    ·         CMPFO launches app to view PF balance

  All’s well which ends well. Hope government keeps up with its promises to the working class Indians and doesn’t interfere with this money. 

   About EPF
     Employee Provident Fund is one of the most important employee benefit scheme in India. The product is not an optional instrument. For every registered organisation with 20 employees has to mandatorily register for EPF (except exempted quota). A company can voluntarily register for EPF with employees less than 20.

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