EPFO Update: This change is going to directly benefit the employees of both the companies. These employees will now be able to get better returns on PF. Till now Air India and Indian Airlines were in the category of Trust. Due to this, the PF of the employees of these two companies was not deposited with the EPFO.
Air India, which recently became part of the Tata Group, is going to join the EPFO from the new year. Along with this, Indian Airlines is also going to come under the purview of EPFO. After this change, the employees of both the companies including Maharaja will now get more return on PF.
Necessary legal changes are being made
The Labor Ministry is making some necessary changes in the relevant laws after the successful auction of Air India. This will clear the way for Air India International Corporation and Indian Airlines Corporation to join EPFO. Both the companies will come under the purview of EPFO from January 1, 2022.
Now you will get more interest on PF
This change is going to directly benefit the employees of both the companies. These employees will now be able to get better returns on PF. Till now Air India and Indian Airlines were in the category of Trust. Due to this, the PF of the employees of these two companies was not deposited with the EPFO. The trust has the freedom to deduct PF and keep it with itself. In this case, the interest on PF is also less.
Employees of both companies gave voluntary consent
The Labor Ministry issued a notification this week saying that the employees of both the companies have voluntarily consented to this change. The ministry said that most of the employees of Air India and Indian Airlines have voluntarily consented to transfer the PF contribution to the EPFO. Only after this this notification has been issued, which will be effective from January 1, 2022.
