EPFO News: EPFO can make major changes in the rules, so that in future, along with the employees, self-employed people will also get the benefit of PF.
EPFO News: Employees’ Provident Fund Organization (EPFO) can make major changes in the rules related to PF. It is the effort of EPFO that all the employees should get the benefit of PF without any limit. For this, EPFO is preparing to bring a proposal, so that the employed as well as business people will be able to join this retirement savings scheme. EPFO is in talks with all stakeholders and state governments for this major change.
At present, enrollment in EPFO can be done only by employees with a salary of more than 15000 and only those institutions which have more than 20 employees. Presently EPFO has over 5.5 crore subscribers.
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (Employees Provident Funds and Miscellaneous Provisions Act, 1952) to extend EPFO benefits to all formal sector employees and self-employed people, ET report quoted a senior official as saying. ) The Act has to be changed.
Explaining the changes, he said that at present, to take advantage of the facilities of EPFO, the salary of any employee should be at least 15 thousand rupees. With this, whichever company wants to give the benefit of EPFO to its employee, then at least 20 employees should be employed with them, for which the government will also have to make changes in the Act.
Employees get many benefits from Provident Fund. In this, there are tax related benefits as well as the interest on investment is also higher than other investment options. If we talk about income tax first, then investors get tax exemption on investment up to Rs 1.5 lakh under 80C. At the same time, the current interest rate on EPF is 8.50 percent. There is also the benefit of compounding on its interest. This means that the higher the investment, the higher the interest earned. On the other hand, people withdraw their money after leaving or changing jobs or break the investment on the need of money, due to which the profit gets reduced.
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