Employee Provident Fund Organization : New Instructions
The Employee Provident Fund Organization recently issued new instructions for pensions.
- Earlier the amount contributed towards the scheme was capped at Rs 15,000.
- Now EPFO says the employees can contribute more than this.
- Both employer and employees contribute a certain amount (from their salary) to the EPFO scheme on monthly basis.
- The interest rate of this contributed amount (a part of the contributed amount) is 8.33%.
- When a person retires he gets an accumulative sum.
- Earlier, a sealing was fixed to the contributed amount.
- Now, this limit has been removed.
The Employees Provident Fund Organisation (EPFO):
- It is a statuary body which assists Central Board in administering compulsory contributory Provident Fund Scheme, Pension Scheme and Insurance Scheme for the workforce engaged in the organised sector in India.