Search This Blog

Thursday, 18 February 2016

The Newer, Revised EPF Scheme

The Central Government has issued several notifications that are reflected in the EPF Scheme. A summarised version of the notifications are:

1. Amendment To Para 26A Etc: Most of the amendment is concerned with Withdrawal. While a member was earlier allowed withdrawal of  upto 90 percent of total accumulations one year before superannuation or 54 years, the age is now relaxed to 57 years.
The insertion of a new paragraph 68NNNN states that if an employee ceases working, he can withdraw 90 percent of his or her contribution with interest, provided he or she is not employed for 2 continuous months. However, this 2 month period is not extended to women who cease employment for marriage, pregnancy or childbirth.
Paragraph 69 mentions that the full amount can be withdrawn from the member's account on retirement, on reaching 55 years of age. This figure has now been replaced by 58 years of age. The change in age criteria is significant since no member would withdraw for fear of losing out on the Employer's contribution.

2. Applying To Banks:  This notification applies to banks that employ 20 or more, if they were not already covered under Contributory Provident Fund or a similar scheme

3. Introducing Incentive Refund Scheme: This Modified Scheme Encourages Employers To Comply With Seeding All Details Of Employees By Providing Form 11, Aadhar, Bank Details, UAN Activation Etc. This Scheme, Introduced For The Calendar Year 2016, Refunds 10% Or 5% Of Admn. Charges If The Employer Attains, At The End Of Every Quarter, A Certain % Of Seeding All Details Of Employees Is Maintained.

4. ICICI Policy In Lieu Of EDLI: The ICICI Pru-Group Term Plus Policy Has Been Approved By The PF As A Policy If EDLI Exemption Is Sought. This Is In Addition To Other Insurance Policies Issued By LIC, Kotak Etc

No comments:

Post a Comment