The speed with which applications have been processed in the time of this pandemic stands as testimony
"Employees Provident Fund Organisation (EPFO) has processed about 1.37 lakh claims across the country disbursing an amount of Rs 279.65 crore under a new provision especially formulated by amending the EPF Scheme to help subscribers fight Covid-19," a labour ministry statement said.
This decision will help to all those EPF subscribers who may face a pay cut, or run short of money amid nationwide lockdown till April 14.
Economic compulsions demand that the PF custodian explores ways to maximise returns on investment
The organisation is reportedly looking to make up for low investment yields
Earnings from long-term fixed deposits, bonds and G-Secs fell 50-80 bps over the past year and the retirement fund body may thus find it difficult to keep rates unchanged this fiscal
Combined NPS, EPF, Superannuation fund investments above Rs 7.5 lakh to be taxed
Increasing take home salary by lowering employees’ mandatory contribution to PF is like enjoying today and leaving little for the rainy days
Government officials familiar with the matter said the labour ministry is of the view that EPFO has sufficient surplus of over Rs 3,150 crore, mainly earned from investments in exchange traded funds (ETFs).
The organisation is looking to ensure the safety of workers’ retirement savings on priority, amid a slew of defaults and downgrades of NBFCs.
Allows accounts linked with Aadhaar to make withdrawal on self-attestation basis.
The companies will have to make good on the loss in principal and interest income by these funds, as per EPFS, 1952.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (the PF Act) defines ‘basic wages’ as all emoluments paid in cash to an employee in accordance with the terms of their contract of employment, subject to certain exceptions.
Apart from employees earning salaries of less than Rs 15,000, this ruling will also bring about a windfall gain to foreign nationals
“A large part of provident fund investments are in the Rs 50,500 crore assets,” the source said, adding, “..and they are likely to take a significant hit, as they will get their money only after secured lenders have been paid off"
How much will investors save from the hike in the interest on small savings schemes? Tune in to find out.
Subscribers can choose between government securities, equity investments, debt instruments, money market instruments and infrastructure investment trusts
Despite the falling rates, EPF still holds saving advantage over other retirement savings fund.
The rate is in line with that for Public Provident Fund. In July-September quarter too, the interest rate was 7.8 per cent.
EPFO has asked regional offices to establish contact with the state housing boards and urge them to allot unsold units to provident fund subscribers.
"The labour ministry has amended the schemes run by the EPFO by a notification. This will enable the Employees' Provident Fund Organisation (EPFO) to make all payments like EPF and pension through digital mode," an official said.
Now, the subscribers can seek fund withdrawal from their EPF account on various grounds by using a composite form along with a self-declaration.
The inclusion of the agenda item of the Central Board of Trustees’ (CBT) to make PF contributions voluntary for the garment and made-up sectors has raised doubts on the government’s long-term intent on provident fund structure.
District offices can facilitate the awareness of EPFO schemes to employers and employees with a view to secure compliance with the law to provide social security.
Central trade unions which have been opposing equity investment of PF money say that support from an overwhelming majority of non-trade union CBT members would result in the proposal being accepted.