Steps are being taken continuously by the government to provide relief to EPFO members. Now the Ministry of Labor is emphasizing on making it even easier and is preparing to make many big changes (Rule Change).
The government is preparing to make big changes to improve the Employees Provident Fund Organization i.e. EPFO. The list of these changes includes increasing the current minimum pension from the current Rs 1000, allowing partial withdrawal at the time of retirement, as well as most importantly making this scheme attractive for people with more coverage, whose monthly income is more than Rs 15000 per month. The government had also given orders for changes in the IT infrastructure for this in the month of September itself.
Benefit from changes in IT infrastructure
The government is considering these changes in EPFO and if TOI’s report is to be believed, the government is serious about this matter and the Ministry of Labor has already ordered major changes in the IT infrastructure, so that the system is more customer friendly and the organization is able to proactively resolve the problems of the customers. It also states that the related complaints are being closely monitored, as there is a long list of complaints, which are often not addressed by the EPFO staff. In such a situation, this problem can be got rid of by changing the IT infrastructure.
Partial withdrawal should be easy after retirement
Labor Minister Mansukh Mandaviya has asked the officials of his ministry and EPFO to consider ways to make the system more friendly for the middle class and lower-middle class customers. Apart from this, the report quoted sources as saying that the Labor Minister has suggested to ease withdrawal at the time of retirement, so that their adequate financial planning can be ensured and the subscribers can change their annual pension amount.
The report quoted a senior official as saying that through the EPFO portal itself, emphasis is being laid on making withdrawal easy for important works like marriage, medical treatment and children’s education. According to him, the entire EPFO system will have to be strengthened and if necessary, the government will make large-scale changes.
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Preparations to make EPFO more attractive
With these changes, the payment can be similar to the withdrawal under NPS. Higher payments in the case of EPF will require a complete change in the Employees’ Pension Scheme, where pension payments are very low. The ministry is also preparing to take steps to ensure that this government scheme is also attractive to those whose monthly income is more than Rs 1500 and who are members of EPFO.
This rule change in EPFO recently
It is worth noting that the government is focusing on making the Employees’ Provident Fund Organization (EPFO) more attractive. This year, Labor Minister Mansukh Mandaviya had given information about a big change in the EPFO rule. Under this, PF account holders can now withdraw up to 1 lakh rupees instead of 50 thousand. Mansukh Mandaviya had said that if you are an EPFO account holder and there is an emergency in the family, then now you can withdraw more money. For this, the limit of lump sum amount has been increased.
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