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Tag: Epfo news

  • EPFO curiosity information: When are you able to anticipate the 8.15% EPF charge to be credited?

    The authorities has authorized to credit score curiosity at 8.15 p.c underneath the Employees Provident Fund scheme for the monetary 12 months 2022-23. As per an official order issued on Monday, the EPFO has requested the filed places of work for crediting the curiosity at 8.15 per cent on EPF for 2022-23 into the accounts of members.

    “The Union Ministry for Labour and Employment authorized an rate of interest of 8.15 p.c for the Employees’ Provident Fund (EPF) scheme. The approval, conveyed by the Central Government, ensures that every member of the EPF scheme will obtain the credited curiosity of 8.15 p.c each year for the 12 months 2022-23. The rate of interest is formally notified within the authorities gazette following approval by the Ministry of Finance, and EPFO credit this charge into its subscribers’ accounts. EPF contributions are credited month-to-month, and curiosity is computed accordingly,” stated Amit Gupta, MD, SAG Infotech.

    When are you able to anticipate EPF rate of interest to be credited?

    Although, curiosity is calculated on a month-to-month foundation in an EPF account, nonetheless, they’re deposited on the finish of a monetary 12 months. The transferred curiosity is added to the subsequent month’s steadiness and is then compounded to calculate curiosity on that month’s steadiness quantity.

    “At the tip of the monetary 12 months, the entire curiosity for the 12 months is credited,” stated Amit Gupta.

    EPF rate of interest calculation

    As per the rule, the EPF curiosity is calculated by summing the month-to-month balances, multiplying them by the rate of interest, and dividing by 1,200. 

    How to examine PF steadiness

    Anyone can examine their EPF steadiness via varied strategies, together with the official web site, textual content messages, missed calls, or the Umang App.

    Step-by-step information to examine EPFO steadiness within the passbook

    -To examine your passbook, a member should go to EPFO’s official web site – epfindia.gov.in.

    -Click on ‘Services’ part which is talked about on the prime of the dashboard. 

    -Under this part, click on on the ‘For Employees’ possibility.

    -A brand new web page shall be opened. Click on the ‘Member Passbook’ possibility talked about underneath the ‘Services’.

    -Once chosen ‘Member Passbook’, she or he shall be directed to a login web page.

    -Mention your UAN particulars together with the password and reply the captcha code. Then click on on ‘Login’.

    -You shall be directed to the primary EPF account the place particulars of the contributions from each workers and employers, together with the curiosity earned are highlighted. 

    Another methodology to examine your steadiness is thru messages. Send an SMS to 7738299899 from the registered cell quantity. The format for sending the SMS shall be: ‘EPFOHO UAN ENG’. The steadiness could be availed by sending a missed name to 011-22901406 or 9966044425.

     

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    Updated: 26 Jul 2023, 01:55 PM IST

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  • EPFO prone to lengthen deadline to use for larger pension: Report

    The Employees Provident Fund Organisation (EPFO) is prone to lengthen the deadline by three months for larger EPS pension, The Economic Times has reported citing sources. The deadline to use for a better pension ends at the moment, The EPFO first prolonged deadline from 3 March 2023, to three May 2023. The second time it was prolonged from 3 May 2023 to 26 June 2023.

    Who is eligible to use for a better pension from EPS?

    Those who have been members of EPF and EPS on September 1, 2014, and continued to be after that date

    Those who retired earlier than September 1, 2014, and beforehand opted for larger pensions however their purposes have been rejected by the EPFO authorities.

    According to tax and funding knowledgeable Balwant Jain, three elements must be thought-about earlier than rejigging your EPF, EPS accounts

    1) Salary: The in the beginning is what’s your take-home wage.

    2) Age: Another issue to be stored in thoughts earlier than choice for larger EPS is your age

    3) Retirement: Balwant Jain mentioned, one ought to calculate roughly the wage on the time of retirement.

    Ahead of the final date of purposes, many EPFO members took on to Twitter to complain concerning the points they’ve been dealing with whereas submitting their larger pension purposes.

    “How can we calculate extra quantity to be paid from EPFO corpus for larger pension beneath EPS for which date has been prolonged until twenty sixth June’23? Is there any official calculator accessible? Need pressing help..,” tweeted @neerajkbanand.

    “Hi Sir, I am unable to register for this join option for higher pension. Even though all my details are present in EPFO and have joined job before 2014, I am in job since 2006.. took a break in 2018 and now in job. But ERR_ASE00:Error: Input values/Database fields are not matche,” mentioned @amruta2403 in a tweet.

    Meanwhile, the retirement fund physique EPFO added 17.20 lakh members on a internet foundation in April this yr, in response to payroll information launched final week.

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    Updated: 26 Jun 2023, 02:30 PM IST

  • EPFO: Pensioners can submit their life certificates on-line anytime of the 12 months

    Retirement fund physique Employees’ Provident Fund Organisation (EPFO) has introduced that Pensioners underneath the (EPFO) can submit their life certificates on-line at anytime of the 12 months.

    In a tweet, the EPFO mentioned,”EPS’95 Pensioners can now submit Life Certificate at any time which will be valid for 1 year from date of submission.” The EPS-95 got here into drive on 19 November 1995. The Employees’ Provident Fund Organization (EPFO) has facilitated a number of choices for EPS pensioners to submit their Digital Life Certificate(DLC), near their dwelling or at their doorstep. Jeevan Pramaan Patra (JPP) submitted via all these modes/businesses are equally legitimate.

     

    How to submit Digital Life Certificate(DLC): A Primer

    In addition to the 135 regional workplaces and 117 district workplaces of EPFO, EPS pensioners can now submit DLC at pension disbursing financial institution department and nearest put up workplaces. DLC will also be submitted at nation-wide community of over 3.65 lakh Common Services Centers (CSC). Apart from this, EPS pensioners may also submit DLC utilizing the UMANG app.

    India Post Payments Bank (IPPB) has launched the doorstep Digital Life Certificate (DLC) service for pensioners. EPS pensioners can now submit on-line request for availing doorstep DLC service on fee of a nominal payment. A postman from the closest Post Office will go to a pensioner and full the method of producing DLC on the dwelling of the pensioner solely.

    As per pointers, EPS pensioners can now submit DLC at any time throughout the 12 months, as per their comfort. The life certificates will stay legitimate for one 12 months from date of submission of DLC. The pensioners who’ve been issued Pension Payment Order (PPO) in 2020 needn’t add JPP until completion of 1 12 months. Earlier, all EPS pensioners had been required to submit the DLC within the month of November. This resulted in difficulties confronted by pensioners attributable to lengthy queues and generated rush for submission of Digital Life Certificate. 

    “The EPS, 1995 is a ‘Defined Contribution-Defined Benefit’ Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages, up to an amount of Rs.15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as of 31 March 2019, there is an actuarial deficit,” based on an announcement by the Union Ministry of Labour & Employment.

    “The provisions of the EPS-95 are reviewed from time to time based on the recommendations of the Expert Committee and the High Empowered Monitoring Committee as well as taking into account the actuarial evaluation of the Employees’ Pension Fund,” based on an announcement by the Union Ministry of Labour & Employment.

    Some of the vital amendments made in EPS-95 are as underneath:

    Increase in wage ceiling from Rs. 6500/- to Rs.15000 per 30 days from 01.09.2014.

    Provision of a minimal pension of Rs. 1000 per 30 days to the pensioners underneath EPS, 1995 from 1 September 2014 by offering further budgetary assist wherever the pension was falling in need of Rs.1000 as per pre-defined system for calculation of pension.

    Restoration of regular pension after completion of fifteen years from the date of such commutation, in respect of these members who availed the advantage of commutation of pension underneath the erstwhile paragraph 12A of the EPS, 1995, on or earlier than 25 September 2008 vide notification G.S.R.132(E) dated 20 February 2020.

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    First article

  • EPFO prone to improve funding restrict in equities to twenty%

    Retirement fund physique EPFO is prone to approve this month a proposal to reinforce its investments in equites to as much as 20 per cent of the investible deposits from the present restrict of 15 per cent. The proposal is anticipated to be thought-about and permitted through the EPFO trustees’ assembly scheduled to be held on July 29 and 30, in response to a supply.

    At current, EPFO can funding 5 to fifteen per cent of the investible deposits in fairness or equity-related schemes. The proposal to revise the restrict to twenty per cent has been vetted and permitted by the Employees’ Provident Fund Organisation’s (EPFO) advisory physique Finance Audit and Investment Committee (FAIC).

    The advice of FAIC can be positioned earlier than the EPFO apex choice making physique — Central Board of Trustees (CBT) — for consideration and approval.

    “The Central Board of Trustees (CBT) headed by Union Labour Minister is likely to approve the recommendation of the FAIC for increasing the investment in equity and equity related scheme to 5-20 per cent from existing 5-15 per cent,” the supply stated.

    In a written reply to Lok Sabha on Monday, Minister of State for Labour and Employment Rameshwar Teli stated, “FIAC, a sub-committee of CBT, EPF, has recommended for the proposal to increase investment in equity and related investments in category IV of the Pattern of Investment from 5-15 per cent to 5-20 per cent for consideration of CBT, EPF.”

    EPFO had began investing in Exchange Traded Funds (ETFs) in August 2015, placing 5 per cent of its investible deposits in stock-linked merchandise. It was raised to fifteen per cent for the present fiscal. Trade unions have been opposing any funding in inventory markets by EPFO as these will not be backed by authorities assure.

    In the written reply, Teli additionally stated the notional return on EPFO equity-related investments rose 16.27 per cent in 2021-22 from 14.67 per cent in 2020-21. The reply additionally confirmed that the notional price of return on fairness associated funding of the the EPFO was in detrimental at (-) 8.29 per cent in 2019-20 because of the impression of COVID-19.

    In 2021-22, the minister stated EPFO settled 2,88,15,498 claims for withdrawal of Rs 1,04,959.18 crore by the subscribers. EPFO had settled 2,33,90,550 claims for withdrawal of Rs 91,187.54 crore in 2020-21. The withdrawal quantity was Rs 70,202.34 crore in 2019-20 beneath 1,28,77,354 claims settled by the EPFO.

  • Govt approves four-decade low 8.1% curiosity on EPF deposits

    The Union authorities has accredited an rate of interest of 8.1 per cent on staff’ provident fund (EPF) deposits for 2021-22 for about 5 crore subscribers of retirement fund physique — Employees’ Provident Fund Organisation (EPFO).

    The charge of curiosity is the bottom since 1977-78 when it stood at 8 per cent.

    Earlier in March, the EPFO had determined to chop the curiosity on PF deposits from 8.5 per cent offered in 2020-21 to eight.1 per cent for 2021-22.

    According to an EPFO workplace order issued on Friday, the Ministry of Labour and Employment has conveyed approval of the central authorities to credit score 8.1 per cent charge of curiosity for 2021-22 to every member of the EPF scheme.

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    The labour ministry had despatched the proposal to the Ministry of Finance for its concurrence. After the federal government’s consent to the rate of interest, the EPFO would now begin crediting the fastened charge of curiosity for the fiscal into the EPF accounts.

    The 8.1 per cent EPF charge of curiosity is the bottom since 1977-78, when it stood at 8 per cent.

    The 8.5 per cent rate of interest on EPF deposits for 2020-21 was determined by the Central Board of Trustees (CBT) in March 2021 and was accredited by the finance ministry in October 2021.

    In March 2020, the EPFO had lowered the rate of interest on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent in 2018-19.

    EPFO had offered 8.65 per cent rate of interest to its subscribers in 2016-17 and eight.55 per cent in 2017-18.

    The charge of curiosity was barely increased at 8.8 per cent in 2015-16. It had given 8.75 per cent charge of curiosity in 2013-14 in addition to 2014-15, increased than the 8.5 per cent for 2012-13. The charge of curiosity was 8.25 per cent in 2011-12.

    –With inputs from PTI

  • Is EPFO a protected wager for retirement fund? EPF funding technique defined

    A favourite financial savings scheme for the salaried class Employees’ Provident Fund Organisation (EPFO) on Saturday has introduced to chop the rate of interest to eight.1% which got here as a shocker to almost 60 million lively EPFO subscribers. This is the bottom since 1977-78 when the EPF rate of interest stood at 8%, the information company added. 

    For many Indian buyers, it’s the main financial savings for retirement functions, however even then, they do not totally perceive how the cash is invested.

    How the EPFO invests its cash?

    The EPFO follows a quite simple and by-the-book technique in the case of investing. As per guidelines, 85percentof annual accruals are invested in debt and 15% in equities. 

    Debt investments: While selecting the debt devices, the organisation has to ensure to spend money on authorities securities within the vary of minimal of 45 % and most of 65%. Again, one other 20% to 50% must be invested in listed debt securities issued by company entities, together with banks and public monetary establishments. Apart from this, it’s allowed to spend money on short-term debt or associated funding upto 5%, contemplating underlying papers have a minimal ranking of A1+ by 2 ranking companies registered by Sebi. Equity investments: For equities, it could spend money on MF and ETF that mimics the Sensex and Nifty indices and are Sebi registered. Also, they will immediately spend money on listed shares of firms with a market capitalisation of not lower than ₹5,000 crore as on the date of funding and REITS regulated by SEBI. 

    The provident fund financial savings are necessary and as per EPFO guidelines, at the very least 12% of an worker’s fundamental wage is compulsorily deducted for the saving and one other 12% is deposited by the employer.

    EPFO had supplied 8.65 % rate of interest to its subscribers in 2016-17 and eight.55 % in 2017-18. The fee of curiosity was barely larger at 8.8 % in 2015-16. It had given 8.75 % fee of curiosity in 2013-14 in addition to 2014-15, larger than 8.5 % for 2012-13.The fee of curiosity was 8.25 % in 2011-12.

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  • Scheme portability: Labour Ministry appears to widen pension ambit

    The labour Ministry is contemplating bringing in a proposal to tweak the foundations for pension scheme below the Employees’ Provident Fund Organisation (EPFO) to make sure wider protection for staff who transfer into unorganised sectors. The Ministry is taking a look at permitting voluntary pension contributions from staff below the Employees’ Pension Scheme 1995 (EPS-95), even when they’ve exited the organised sector. The proposal will probably be taken up for dialogue within the EPFO’s Board meet on March 11-12, aside from the rate of interest for FY22 and switch of unclaimed deposits in direction of senior residents’ welfare fund.

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    This would mark step one in direction of guaranteeing portability of social safety and convergence of schemes to make sure universalisation of social safety for staff of each organised and unorganised sectors, a senior Labour Ministry official stated. “This was discussed in the committee’s meetings. It was felt that workers are unable to contribute to their pension. Say, there are construction workers who work in firms with 20 or more workers, so they contribute to EPFO, but if they work for an establishment employing less than 20 workers or work independently as a mason or any other work form, then they are out of the ambit of the organised sector and so are unable to contribute under the EPFO. The government is looking at how their contribution can continue voluntarily even after they have exited the organised sector,” the official informed The Indian Express.

    “As of now, this option does not exist for workers who slip out of the ambit of EPFO. The committee is of the view that this should be done. Pension contributions have to be made continuously for ten years for the worker to be eligible to avail it, so such tweaking will help them avail pension benefit even if they work in the unorganised sector,” the official added.

    The Ministry had fashioned 4 sub-committees in November for establishment-related issues, futuristic implementation of the Social Security Code, digital capability constructing and pension associated points. At current, all these staff within the organised sector whose primary wage (primary pay plus dearness allowance) is as much as Rs 15,000 monthly on the time of becoming a member of service are mandatorily lined below EPS-95, with 8.33 per cent of the employer’s contribution going in direction of EPS and the remaining 3.67 per cent in direction of EPF.

    The rising view inside policymakers is that it’s needed to construct a method in direction of convergence of social safety schemes addressing the motion of labour between the organised and unorganised segments. “The e-Shram portal, aimed for unorganised sector, is doing registrations based on the format of the 12-digit UAN number, which also exists for EPFO. Hence, the UAN will be common for workers and it can then be identified which segment he is working for. A worker is not permanently organised or unorganised, about 50 per cent of the EPF subscribers move in and out either between two companies or between unorganised and organised sectors. If the worker, say, is working in the EPFO, he will get benefits and if he moves out, then we will see what different kinds of schemes he can get,” the official stated.