EPF or Employees Provident Fund Organisation is one of the biggest retirement fund organisation in India. EPF is also responsible for taking contributions from employees and employer for creating fund for employees. But employee will get complete fund only after retirement. However Government of India is changing many rules of EPF. These changes include housing loan policy for EPF subscribers. Even medical allowance for EPF members is possible now.
Plan on optional EPF removed
On other hand Arun Jaitley the Finance Minister of India put forward some more changes. And this was about optional contribution towards EPF fund. It means that low wage earners (workers) may contribute to employee provident fund. But it is not compulsory. By doing this many people will benefit.
Mr. Jaitley also said that if there is no compulsion on contribution of EPF then people can use that money for personal use. Besides this feature is only for low income class. When your income is above Rs. 15, 000 and your company has more than 20 people then you must contribute to EPF fund.
Finance Minister Jaitley proposed this idea during Budget of 2015-16. Arun Jaitley also stated that this would help people to meet their requirements. Additionally it will not be burden to employees.
Learn how to check EPF balance.
Rejection of optional EPF plan
The Indian Government however rejected plan of finance minister saying that every working person must get benefits of provident fund. So that they have money after retirement. Government of India also plans to have all categories covered under provident fund. These categories are workers from unorganised sector or casual workers.
Even part time and self employed persons must contribute to employee provident fund. Authorities specifically told that those who earn below minimum wage should contribute to provident fund or their own EPF account.
As a result benefits such as pension, insurance or other EPF benefits will be available to all workers. In this way there can never be any discrimination among people. Authorities would encourage all employers to take more new employees. It is so because government is going to help company owners with EPF amount for new employees.
New scheme for employers
Indian Government plans to help employers by contributing some amount to EPF accounts of new employees. For this there is Pradhan Mantri Rojgar Yojana Scheme. Moreover to use this scheme you must first check if you are eligible for this scheme or not.
In order to check eligibility criteria for PMRPY scheme you can read another article. Here you also know how to access scheme at PMRPY portal.
Proposed code for Social Security and Welfare
Finally Government of India plans to create social security fund with help of employers. This is reason for removing optional EPF contribution feature.