The total backlog or outstanding provident fund dues of EPFO during 2018-19 was Rs 791.63 crore, Labour Minister Santosh Gangwar said in a written reply to the Rajya Sabha.
You should not ignore the fact that VPF comes with withdrawal restrictions and full withdrawal is possible only at the time of retirement.
Though the move was announced in June this year after the meeting of the CBT of EPFO, only now has the government notified it so that it becomes law.
Your salary structure is of utmost importance; as you would always seek to maximise your take-home salary
The hike in investment to state government bonds could also be on account of a flight to safety from private bonds.
Pune-based Kunjirs will have to raise their equity exposure and also stagger some of the goals for now, suggests the financial planner.
EPF members with no jobs for a month can avail 75% of the total fund standing to his/her credit.
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His goals include building an emergency corpus, buying a car, saving for his children’s education and weddings, and his own retirement.
As per the unified portal of EPFO, if you wish to file an online claim for your EPF, then you have to mandatorily link your UAN with Aadhaar.
EPFO proposed to amend the Act to limit enquiry period to a maximum of two years in order to curtail harassment.
Gangwar noted that a committee had earlier recommended increase of the minimum monthly member pension.
Assuming you have most of your investments in debt and/or real estate, you can invest in good large- and multi-cap funds, given your time horizon.
Hyderabad-based Setty should also trim his insurance portfolio to secure his finances adequately.
The UMANG app can be downloaded on multiple types of devices such as a smartphone, desktop, and tablets.
Here is breaking down the pre-market actions.
Saket Mehrotra is a 26 year-old CA from Kolkata. His goals include building emergency corpus, buying a car and house, taking an annual vacation, saving for his future child’s education and wedding, own retirement. Here's what the financial planner recommends.
By utilising his existing resources and securing risks adequately, Shravan can ensure a smooth journey.
The data includes information on the new members who have started subscribing to EPF and those who have ceased their subscription during the period.
Besides investing in line with his goals, Bengaluru-based Kumar should buy adequate insurance.
Weigh in factors like your tax slab, salary growth trajectory and trust in the EPFO before you decide.
The apex court in its judgement has ruled that special allowance is part of the basic wages for computing the employees provident fund (EPF).
It's learnt that data is being uploaded and sent to regional offices under the new mechanism, so the delay.
Simple goals and high investible surplus mean that Hyderabad-based Krishna will achieve all his goals.
Since buying a house is a priority for Pune-based Vermas, they should push back other goals for now.
After providing 8.55% interest for 2017-18, the EPFO would have a surplus of Rs 586 crore. The 8.55% rate of interest would be lowest rate in last five year for subscribers.
Apart from building an emergency corpus, Vishvas Mathur's other goals include saving for his child’s education and wedding, and retirement.
The EPF statement also shows the total corpus that has been accumulated through contributions made you and your employer.
Ahmedabad-based Mahajan's goals include building an emergency corpus, saving for their kids’ education and weddings, and their own retirement.
I-T laws provide that interest credited to EPF account after an individual ceases to be in employment is taxable in his hands in the year of credit.
Assuming your age is less than 58 years, your account will continue to earn interest. However, the interest earned in this account will be taxable.
The Employees' Provident Fund Organisation has mandated that online claims have to be filed for provident fund withdrawals above Rs 10 lakh.
EPFO is allowed to invest in exchange traded funds, index funds and derivatives with a minimum 5 percent and up to 15 percent limit for equity.
Despite the current low surplus, Rewari-based Kumar will be able to meet his goals in a staggered manner.
With these long-term, tax-efficient products offering lower returns compared to equity products, what should someone saving for retirement do?
Under EPS you will get pension based on the number of years in service and your last drawn salary.
The sources said that the income projections for the current fiscal were circulated along the agenda to the trustees and would be tabled during the meeting tomorrow.
Linking your Aadhaar to the PF account will help in faster transfer and withdrawal of the Employees' Provident Fund (EPF) money.
To download EPF passbook, the subscriber needs to be registered on the EPFO member portal by activating the UAN.
A Rs 3000 monthly pension will be given to individuals who subscribe to scheme from the age of 60. It also has provision of family pension for spouse in case of death of individual.
The EPFO, which manages workers’ retirement funds, should go ahead and book profits on share purchases to give subscribers a decent rate of return.
The worksheet is to be provided to members irrespective of whether they file their claims online or offline.
Singhs' goals include building an emergency corpus, buying a house, and saving for an annual vacation, kids’ weddings and retirement.
In addition to their normal contribution to EPF, employees can benefit from this higher interest rate by voluntarily contributing more – i.e. through VPF.
Collateral-free loans up to Rs 10 lakh are extended to small or micro business enterprises and individuals to enable them to set up or expand their business activities under the scheme.
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This has been done to smoothly implement the orders of the SC on paying pension to employees on the basis of higher contributions made earlier on the basis of actual salary.
Under this facility, subscribers of the Employees' Provident Fund Organisation (EPFO) can merge as many as 10 previous accounts with their UAN at one go.
Over 7 million jobs were formalised between 2015-18, taking the number to 74.9 million, as per a report.
The new Aadhaar linked 'composite claim form' can be used for availing benefits as under EPF Form 19, Form 10C and PF part withdrawals Form 31.
The Government will now contribute the Employer's full contribution for the first three years from the date of registration of the new employee.
The chances of locking funds in an unsuitable tax saving investment are quite high.
The Siroyas goals include building an emergency corpus, saving for kids’ education and weddings, buying a car, taking a vacation and creating a retirement corpus.
The total EPF balance at any point of time includes the employee's contribution and that of the employer, along with the accrued interest.
Coimbatore-based Manikandan will have to stagger his investments to reach his financial goals. His goals include building an emergency corpus, funding his child’s education, wedding, etc.
The EPFO has now introduced an online facility to process the withdrawal claim, which seeks to bring down the processing time.
Going forward, the pension may be calculated on the basis of average salary of last 12 months.
The circular emphasises that any deficit in interest declared by the board of trustees is to be made good by the employer to bring it up to the statutory limit.
The couple's goals include building an emergency corpus, setting up a business, buying a house, saving for their child’s education and retirement.
EPFO subscribers are no longer required to file separate EPF transfer claims using Form-13 after changing jobs as it will now be done automatically.
Their goals include building an emergency corpus, saving for their future child’s education and wedding, buying a car and building a retirement kitty.
The govt spends about Rs 9,000 crore per annum on pensions under the Employee Pension Scheme.
Eligible payments include life insurance premium, principal repayment of the home loan and children's tuition.
Under the EDLI scheme, 1976, the assurance benefit to an eligible employee will now stand at a minimum of Rs 2.5 lakh and will be capped at Rs 6 lakh.
To make the transfer, a request must be made to the recognized employee provident fund or superannuation fund to his NPS account.
In order to contribute more than the statutory ceiling, the employers are required to exercise an option for higher contributions.
Earlier last year in June, the Centre has brought a package for the textile and apparel sector which was later extended to made-ups also in December 2016.
EPFO looks to pump in more funds in state G-secs and AA+ rated instruments, as it seeks higher returns.
A large corpus of over Rs 10 lakh crore allows the EPF to diversify its portfolio beyond traded stocks and bonds. It should consider private equity and real estate as well.
The move is likely to encourage employers hire more people in the formal sector thereby pushing the overall share of country's workforce in the organised sector.
Budget 2018 also proposes that women joining the workforce for the first time will have to contribute only 8 percent instead of 12 percent.
Defence in general is incrementally good, but we do not see that as moving the needle for many stocks.
The couple's goals include building an emergency corpus, saving for their kids’ education and weddings, buying another house, and creating a retirement kitty.
The EPFO is developing a software that will show savings in cash and ETF components separately.
The Supreme Court's decision is likely to impact those domestic workers whose basic salary is or was (at an earlier point in time) less than Rs 15,000.
According to labour ministry, 33,031, 30,27,612 and 69,49,436 beneficiaries have been enrolled with EPFO under the PMRPY during 2016-17, 2017-18 and 2018-19 respectively.
Even if the EPF rate is cut, the difference would remain substantial thereby disadvantaging the self-employed class in terms of retirement savings.
Invest your money in a combination of liquid and overnight funds for emergency needs. But avoid other debt fund categories for this purpose.
Long-term debt investments should form a part of every investor's portfolio to maintain stability. However, investors should know that most long-term tax-saving debt investments have long lock-ins and, therefore, come with liquidity issues.
The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO).
I believe that for the future, EPFO, which is the largest national body, should also look after the provident fund of the coal mines workers, said Piyush Goyal.
NPS investors split their corpus across three different classes of funds so ET looked at blended returns of different types of investors.
This shows 8.5 mn new jobs have been created under PMRPY, with total outgo from govt at about Rs 2,400 cr.
The dilution in the definition of inoperative accounts means that from Nov 11, more account holders will get interest against funds lying idle in their EPF accounts.
The Finance Ministry has been nudging the Labour Ministry to lower the EPF rate for aligning it with the rates of small savings schemes like PPF.
The subscribers can seek fund withdrawal from their EPF account on various grounds by using a composite form along with a self-declaration.
The labour ministry is likely to seek Cabinet approval for the Code on Wages Bill next week as it pushes for its passage in the ongoing Parliament session.
The ratification of the 8.65 per cent on EPF will enable the retirement fund body EPFO to credit this rate of return into the accounts of four crore subscribers.
As EPFO forayed into equity investing only two years ago, it is too soon to assess the impact of the hike in equity allocation.
Finance Ministry in its communication to the Labour Ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund.
Reports suggest that the Finance Ministry is nudging the Labour Ministry to lower the EPF interest rate by up to 50 basis points.
The government has to be sensitive to the needs and grievances of the workers, who toil day and night, and have a major role in India's progress, he said.
As per the scheme, the EPFO is required to settle all claims within 20 days from filing of the application for settlement of pension or EPF withdrawal.
A Parliamentary panel has asked the labour ministry to go for random checking of returns filed by private EPF trusts to detect any misuse of the facility and impose heavy penalty for default.
The revision is expected to help EPFO add nearly one crore subscribers to its existing base of 8.5 crore.
The rise in number of flexi-staffing workers indicates formalisation of workforce.
Last year, the EPFO had cut interest rate to 8.65%. Now rates have slipped further. ET Wealth spoke to three experts for their views on whether the rate should be cut.
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