I won’t mind calling its history when the employees had to get Form 13 signed from the ex-employer and submit to the present employer or start an online transfer of funds. According to the report of Times of India, in pretty much a month, the employees wouldn’t have to be concerned about the Provident Fund (PF) account transfer as it will get completed automatically. As per the chief provident fund commissioner VP Joy, the major hindrance in front of them is the untimely closure of accounts that occur after employees change their services.
The employees, on the other hand, need to deal with a lot of paperwork ahead joining a new company and in the midst all the tension, the workers close their accounts and re-establish it later. To keep this structure away, Employees Provident Fund Organisation (EPFO) is making efforts to create the entire transfer process employee-friendly. On the other hand, the automatic PF account will give workers to carry on with their existing accounts and there will be no need of opening new accounts without transferring funds. Coming to the other things, now Aadhar is also compulsory to enroll for EPF. According to the VP Joy, PF account is permanent and can also be utilized for social security.
Adding to this, Joy said that he also advised that the money should just be pulled back from the account for vital purposes like marriage, hospitalization, education or housing. In an offer to create more job offers, the governing is taking a lot of measures, one of which is expanding its contribution to the Employees Provident Fund (EPF). The government will provide extra 1 percent of their pay under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for the new employees.
Know about PMRPY scheme:-
In Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme, the government takes care of the employer’s side. The EPF part for the employees that originate from the employer is being paid by the government to promote firms to enroll jobless people. Additionally, the plan acquires the informal workers in the payroll. The plan is valid for the workers with an income of up to Rs 15,000 per month for a period of three years.
Know about the breakup:-
- The employer’s share of EPF kitty can be branched into five segments –
- Employees’ Pension Scheme (EPS) – 8.33 percent
- Employee Provident Fund (EPF) – 3.67 percent
- Administrative charges- 0.65 percent
- Employees’ Deposit-linked Insurance Scheme- 0.5 percent
- EDLI maintenance- 0.01 percent
Under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme, out of the five segments government gives EPS offer and this advantage is expanded to every newcomer in a firm.