This initiative will allow the PF subscribers to interact directly with EPFO's regional offices on a personalised level adhering to one-to-one guidance principle. WhatsApp helpline is now functional in all the 138 regional offices of EPFO.
If the market continues to be at elevated levels, more redemptions from EPFO are likely. That is not good news for the bluechips.
"In view of the ongoing COVID-19 pandemic and the vulnerability of elderly population to coronavirus, the Employees' Provident Fund Organisation (EPFO) has extended the time limit up to 28th February 2021 for submission of Life Certificate (Jeevan Pramaan Patra-JPP) in respect of the Pensioners drawing pension under EPS 1995 (Employees' Pension Scheme-1995) and whose Life certificate is due in any month till February 28, 2021," a labour ministry statement said.
EPFO will make “every effort” to pay the 8.5% interest to its subscribers for 2019-20 at one go . This latest view comes day after the central board of trustees of the fund which met on Wednesday decided to recommend to the finance ministry that the interest rate should be paid in two tranches.
EPFO on Wednesday (September 9) decided to credit a part of 8.5 per cent interest on employees provident fund (EPF) for 2019-20 into the account of its around 6 crore subscribers in a Meeting of the Central Board of Trustees of EPF held via virtual conferencing. The remaining 0.35 per cent rate of interest on EPF for 2019-20 would be credited into the subscribers account in December this year, the board further said.EPFO to credit 8.5% interest on EPF for FY20 in two installments
The government-managed fund has recommended that 8.15% interest, from its income from debt investment, be credited immediately into the accounts of its 50 million subscribers. The balance 0.35% will be paid in December, from the sale of investment in exchange-traded equity funds, it said.
The net payroll addition for the second quarter of FY’21 stood at 30.34 lakh, which is approximately equal to payroll figures of second quarter of FY’20. “This indicates a robust recovery to pre Covid-19 levels,” the organisation said.
The EPFO has emphasised that the dataset published regarding contributory members and establishments does not match with the official data of the organisation for any of the wage months mentioned.
The discussions are currently underway on whether the EPFO need to float an entirely new scheme to extend its coverage to individuals or bring the two schemes within its fold.
EPFO subscribers up 45 lakh in FY21, big indicator of job creation: Apurva Chandra, Labour Secretary
If you look at the EPFO payroll data since February, it showed there was a loss of employment in April and May. Since then, EPFO has seen net additions in subscribers, says Apurva Chandra.
The EPF corpus is large enough to diversify asset classes and achieve the right trade-off between risk and return. It can also set up a special situations fund to invest in distressed assets being turned around. The point is to mitigate risk by investing across asset classes.
Further, to enable KYC seeding on such large scale, the Employees Provident Fund Organisation (EPFO) has also undertaken massive exercise of rectifying the demographic details of subscribers even during the lockdown phase.
The net new enrolments with the EPFO had dropped to 5.7 lakh in March 2020 from 10.2 lakh in February, according to the payroll data released in May. The net new enrolments with the EPFO hover around 7 lakh every month on an average.
Similarly, according to the payroll data from the Employees' Provident Fund Organisation (EPFO), during April-August 2020, 25 lakh new EPF subscribers have joined, of which 12.4 lakh were first-time payroll entrants.
“Innovative measures like auto-settlement mode and multi location claim settlement have ensured that most of the Covid-19 claims are settled within three days despite severe restrictions on full deployment of staff,” EPFO said in its letter dated November 20 to the members of the central board of trustees.
All types of online claims, i.e., provident fund, pension, partial withdrawal and claims and transfer claims can be processed under this novel initiative.
In the current scenario of COVID-19, the Employees' Provident Fund Organisation (EPFO) has facilitated multiple options for EPS-95 pensioners to submit their DLC close to their home or at their doorstep, the ministry said in a statement.
Latest data released on Tuesday showed that net new enrolments in April were in the negative zone at (-) 1,04,608 against the figure of (-) 61,807 released in September. This means that the number of members who exited the EPFO subscription was more than those who joined or rejoined the scheme.
April was the first month of the nationwide lockdown imposed to prevent the spread of Covid-19 as a result of which all industries and establishments were shut down during this period, extending to May and June though it was partial in the third month.
"Recently published provisional payroll data by the EPFO highlights the ever growing trend of increasing subscriber base for EPFO, since the collation of payroll data from September 2017," the Ministry of Labour & Employment said in a statement.
The fund is estimated to have halved its investments to about 5,000 crore since May
In order to provide more facilities to an EPF member to resolve his/her complaints, the retirement fund body, EPFO, has launched WhatsApp helpline number. However, each regional office has its own dedicated WhatsApp helpline number. Here's how to use this facility.
In addition to CSC centers, EPS pensioners can continue to submit jeevan pramaan through 135 regional offices and 117 district offices and pension disbursing banks.
Artificial Intelligence is playing a major role in bringing down the withdrawal time from the usual requirement of 10 days.
AITUC seeks labour minister's intervention against alleged malafide campaign to reduce EPF interest rate
The AITUC shot off a letter to Gangwar on July 29, after a report suggested that there were withdrawals to the tune of Rs 30,000 crore in April-June this year during the coronavirus-related lockdown.
This includes Aadhaar seeding for 39.97 lakh subscribers, mobile seeding (UAN activation) for 9.87 lakh subscribers and bank account seeding for 11.11 lakh subscribers, the Employees’ Provident Fund Organisation said in a statement on Wednesday.
The payroll data of the ministry of statistics and programme implementation, released on Wednesday, shows rise in numbers of EPFO, ESIC and NPS subscriptions.
Calendar 2019 witnessed total inflows of Rs 1,01,122 crore while Calendar 2018 saw FPI outflows of Rs 33,014 crore. Net inflows for last two years stood at Rs 68,108 crore. This month, FPIs have already infused Rs 48,278 crore so far.
EPFO may cut 8.5% rate declared for FY20 because of declining return on investments and cash flow.
The move will benefit 6,30,000 pensioners every month, although it will cost the government Rs 1,500 crore at a time when it is facing a resource crunch due to the Covid-19 virus outbreak and the related nationwide lockdown that has hurt the economy.
“We are looking at bringing the Pradhan Mantri Shram Yogi Maandhan for unorganised workers and the National Pension Scheme for traders and self-employed persons under the administrative control of EPFO,” an official aware of the deliberations told ET.
Out of this, 15.54 lakh claims, which saw disbursement of Rs 4,580 crore to claimants, were related to the recently introduced COVID-19 advance under Pradhan Mantri Garib Kalyan Yojana (PMGKY).
Provisional payroll data released by the EPFO shows net enrollment in June have been revised down to 4.83 lakh compared to 6.55 lakh in June shown last month.
EPFO is of the view that due to lockdown, many employers are facing difficulties to send the one time registration requests to the regional offices in the existing scenario.
As per the recent estimates of RBI, GDP growth rate for Q2 would be at -8.6 percent, pushing the economy to a recessionary phase. In such a scenario, strong measures are needed to guide the economy to a recovery path.
The government, had, in February this year notified the restoration of full pension after 15 years of retirement for pensioners who have commuted part of their pension at the time of retirement.
The ceiling will exclude employers from benefiting from the subsidy for jobs that pay even slightly more than ₹15,000 but well within wage range for lower-end jobs in manufacturing and services sectors.
The data also showed that during September 2017-March 2020 period, the number of net new subscribers was around 1.55 crore. The net new enrollments with EPFO was 15.52 lakh during September 2017-March 2018.
Government had notified the special withdrawal provision from the EPF Scheme on March 28 to tide over the COVID-19 pandemic as part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package.
"The employers disbursing the wages for March 2020 not only get relief of extension of due date for payment of EPF dues for March, 2020 but also avoid liability of interest and penalty, if they remit on or before May 15, 2020," EPFO added.
"All 135 field offices of EPFO processed pension payment for April, 2020 in advance to avoid inconvenience to pensioners on account of nation wide Covid-19 lockdown," EPFO said in a statement.
Earlier on April 30, the EPFO allowed employers to file monthly EPF returns without making simultaneous payment of dues, which gave a relief to about 6 lakh firms amid the lockdown.
New Delhi: Amid the ongoing lockdown imposed to contain the transmission of coronavirus, which has forced companies to halt operations temporarily or ask employees to work from home, the retirement fund body Employees' Provident Fund Organisation (EPFO) has requested employers for neither cutting salaries of employees nor laying them off.Don't cut salaries or resort to layoffs: EPFO appeals to employers
Under the scheme, notified on March 28, members can avail non- refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to the member’s credit in the EPF account, whichever is less, to tide ove the financial crisis emerging out of COVID-19.
The Central Provident Fund Commissioner has directed the field offices of EPFO to generate and reconcile pensioners' details and pension amount statements for the current month by 25th March 2020.
The decision has been taken in the wake of provident fund and pension services been declared as essential during the nationwide lockdown since March 23.
In what could be early signs of formal employment gaining ground after significant dip in April due to nationwide lockdown, the number of subscribers who left and rejoined Employees Provident Fund (EPF) scheme stood at an all-time high so far this year in June, while the number of exits from the scheme dropped significantly.
During the April-February period in 2019-20, the number of net new subscribers rose to 76.53 lakh compared to 61.12 lakh recorded by Employees' Provident Fund Organisation (EPFO) during the entire 2018-19.
The ministry on Monday notified lower rates of provident fund contribution at 10 per cent, increasing the in-hand salary of 4.3 crore provident fund subscribers. Last week, Finance minister Nirmala Sitharaman had announced the reduction of statutory provident fund contribution by both employers and employees for the next three months to 10 per cent of basic wages from 12 per cent.
The payroll data, released by the ministry of statistics and programme implementation on Friday, shows the members exiting the EPFO scheme fell to 3,12,744 as against 5,70,664 in June, which has been revised upwards while those who rejoined the scheme stood at 5,47,755 compared to 5,14,659 in June.
Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar on Thursday. The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body -- the Central Board of Trustee.EPFO slashes interest rate on deposits to 8.5% for FY20
Writing a foreword, Labour Minister Santosh Gangwar expressed that the EPFO Delhi West has strengthened social accountability through public review of its performance using social media on a daily basis.
The EPFO is considering a cut of 15 basis points in the interest rate on PF deposits in FY20 to 8.5%.
The Employees’ Provident Fund (EPF) Scheme was amended to provide for a non-refundable advance from the provident fund account of a member not exceeding the basic wages and dearness allowances of that member for three months or up to 75% of the amount standing to his credit in the EPF Account, whichever is less.
The government had filed an affidavit in the Supreme Court in a case concerning the moratorium, stating that it would waive interest on interest on loans up to Rs 2 crore for a select category of borrowers.
Claims settlement involves disbursal of total amount of Rs 4,684.52 crore which includes Rs 2,367.65 crore COVID claims under the PMGKY package. The exempted private PF trusts have also risen to the occasion amidst the COVID-19 pandemic.
Retirement fund body EPFO on Monday said it has issued directions for timely credit of monthly pension to over 65 lakh employees' pension scheme (EPS) beneficiaries amid the coronavirus outbreak.
As much as Rs 30,000 crore has been withdrawn in under four months starting April by 8 million subscribers of the Employee Provident Fund Organisation. EPFO manages a corpus of Rs 10 lakh crore built on mandatory contributions from nearly 60 million salaried people and their employers. The huge outgo is likely to impact the fund’s earnings in FY21. Going by the current trend, EPFO expects nearly 10 million subscribers to withdraw from their savings in the coming days.EPFO withdrawals hit Rs 30,000 crore during April-July lockdown
The move, which comes 10 years after the provision was withdrawn, follows a decision at a recent meeting of the EPFO’s central board of trustees and will benefit around 630,000 pensioners.
Retirement fund body EPFO has settled 94.41 lakh claims totalling Rs 35,445 crore during April-August despite COVID-19 related restrictions, an official statement said on Tuesday.
CMPFO’s payments have started exceeding inflow since 2016-17.
New subscribers increased about 64% to 498,000 in June from 303,000 in May while exits from EPFO subscriber base declined nearly 33% to 296,000 in June from 445,000 in May. The EPFO saw net addition of 1.2 million subscribers in June this year while 2019-20 saw one million new subscribers on average every month.
Currently, only workers who are under a formal employee-employer relationship in a business establishment are eligible to subscribe to the provident fund and pension schemes run by the EPFO.
Till now exempted establishments had to approve and transfer the funds one-by-one for each member. Consequently, larger establishments requiring to transfer the funds of many employees each day, found the process very cumbersome and time taking.
Looking to bring service delivery closer to the doorsteps of Employees' Pension Scheme (EPS) pensioners, especially during the coronavirus pandemic, EPFO has partnered with CSC to provide facility to submit Digital Jeevan Pramaan, the labour ministry said in a statement.
As per the announcement, due to pandemic situation, the government will amend Employees Provident Fund withdrawal rules and also, will pay both employer and employee contrition to the EPF account for the continuity of the account for the next three months.
Members can use this facility to withdraw three months' basic wages -- basic pay plus dearness allowance -- or half of the total accumulation in his or her Employees' Provident Fund (EPF) account, whichever is less for meeting exigencies due to the COVID-19 situation.
As per EPFO, in the current scenario the businesses and enterprises are not able to function normally and are facing liquidity or cash crunch to pay their statutory dues even though they are retaining the employees on their rolls.
Adding to the 16 services already on the UMANG app, EPFO has now started another facility, enabling EPS (employees' pension scheme) members to apply for Scheme Certificate under Employees' Pension Scheme, 1995, according to the statement. Scheme certificate is issued to members who withdraw their Employees Provident Fund (EPF) contribution but wish to retain their membership with the EPFO to avail pension benefits on the attainment of retirement age.
The proposed rate is 15 basis points lower than 8.65% announced for FY 2018-19. The finance ministry will have to vet the interest rate of 8.5% agreed upon by CBT before it is notified by the labour ministry.
The interest rate is a big sentiment booster and any cut may further hit the employee sentiment.
EPFO officials told ET the amount withdrawn between April and the third week of July is much more than the usual outgo seen over similar periods, and that pandemic-related job losses, salary cuts and medical expenses explain this substantial increase.
The reduction in EPF contribution to 10 per cent from 12 per cent was announced by Finance Minister Nirmala Sitharaman as a part of the Atmanirbhar Bharat Package to provide some relief to employers and also to increase the take-home pay of the employees.
The three Bills relate to codes on occupational safety, health and working conditions, industrial relations and social security. Alongside the Wage Bill that was passed earlier, the four codes consolidate the relevant labour laws in the central sector.
“The number of active members under EPFO, at present, are 4,50,60,972 (contributing UANs of last three wage months viz. August, 2019 to October, 2019)," said labour and employment minister Santosh Kumar Gangwar .
EPFO started to invest 5% of fresh inflows in index ETFs from August 2015. This was raised to 10% in 2017 and later to 15% in 2018. EPFO’s maiden foray into equities initially proved bountiful but got a rude shock in March this year.
Here are the 17 questions and their answers for those EPF members looking to transfer their EPF accounts from their previous employers to new employers.
In the process, EPFO has become the largest organization on UMANG accounting for more than 90% of the footfall on the app.
The net new enrolments with retirement fund body EPFO recorded at 1.33 lakh during April 2020, according to its payroll data, providing an employment perspective in the formal sector impacted by COVID-19-induced lockdown. The government had imposed lockdown from March 25 to fight COVID-19 in the country.
Late last month, CMPFO had in a letter informed that a three-member panel was formed to examine the merger following a letter from the ministry in early March. In a statement issued last week, CMPFO said that its letter, by which the panel to examine the issue of merger was constituted, has been withdrawn by the competent authority since presently there was no such proposal under consideration.
The scheme also increased its subscriber base by 1.5% to 35 million, up from 34.5 million as of March end, with maximum additions under the Atal Pension Yojana, official data showed.
The fund is estimated to have halved its investments to about 5,000 crore since May
Total AUM of ETF industry in India has exceeded ₹2 L cr; A large chunk of it has come from EPFO
Employees' Provident Fund Organisation (EPFO) is undertaking several digital initiatives including online Universal Account Number (UAN) generation facility for subscribers and e-inspection system for employers.
The top sectors which have seen over 50% increase in formalisation of workforce are hospitality and financial institutions while sectors like textiles have seen a jump of 20% as per the payroll data of the Employees’ Provident Fund Organisation, shows the payroll data of EPFO.
At present, workers are required to apply through their employers to get the universal account number (UAN), which enables them to avoid filing PF transfer claims on changing jobs. Now they do not have to depend on his or her employer for getting the UAN. The UAN remains the same throughout the life of a worker.
A senior government official told ET that lower contribution rule under PF will not apply to all.
Net additions under the Employees State Insurance Corporation (ESIS) totalled 4.6 lakh compared to 2.41 lakh in April, while those under the National Pension Scheme (NPS) stood at 43,888 in May, a dip from 64,647 subscribers added under the scheme in April, the Ministry of Statistics and Programme Implementation said in its monthly report on Thursday.
EPFO proposed to amend the Act to limit enquiry period to a maximum of two years in order to curtail harassment.
The decision to extend EPF contribution will give further relief to small businesses who are facing a cash crunch. The move will benefit more than 72 lakh employees.
The Employees’ Provident Fund Organisation has received 400,000 requests for withdrawals under a special Covid-19 window announced 13 days ago to provide relief to subscribers in financial need.
If you wish to withdraw from your EPF account, due to coronavirus-led financial stress or otherwise, your claim may be rejected for many reasons. Shambhavi Mehrotra of ET Online lists 5 such reasons and the steps you can take to ensure your claim gets accepted.Your EPF withdrawal claim can be rejected in these cases, here's how to avoid this
To help EPF members with the withdrawal process to meet the financial emergency due to novel coronavirus pandemic, the EPFO issued a set of FAQs. These FAQs will answer all the queries an EPF member may have related to making withdrawal from EPF account.
The move would benefit the pensioners who had opted for commutation and got a lump-sum amount at the time of retirement before 2009.
The tier-II bonds are expected to offer 6.65-6.75 per cent, with a 15-year maturity, said two people with direct knowledge of the matter. The proposed bonds will likely come up for bidding on the electronic platform of stock exchanges on Wednesday.
The appointment of the fund managers for another term of three years had been pending with the EPFO since April last year.
However, during the April-February period in 2019-20, the number of net new subscribers rose to 76.53 lakh compared to 61.12 lakh recorded by the EPFO in entire 2018-19. The net new enrolments were 15.52 lakh during September 2017-March 2018. The latest data showed that during September 2017-February 2020, around 3.29 crore (gross) new subscribers joined the Employees' Provident Fund Scheme.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65 per cent for 2018-19.
The withdrawal can also be done online. For this, one must have an activated Universal Account Number (UAN), the Aadhaar should be verified and linked with the UAN and the bank account with IFSC Code should be seeded with UAN.
Labour Minister Santosh Gangwar on Tuesday said over 6 crore EPFO members will get 8.65 per cent interest on their deposits for 2018-19. The Central Board of Trustees -- the apex decision-making body of the Employees' Provident Fund Organisation (EPFO) -- had approved 8.65 per cent interest rate for the last fiscal in February this year. The proposal was sent for the concurrence of the finance ministry.Over 6 crore EPFO members will get 8.65% interest for 2018-19: Labour minister Gangwar