EPFO Update: The Employees Provident Fund Organisation, or EPFO, has announced that it has added 13.95 lakh subscribers on a net basis in November 2021. This is an increase of nearly 38 per cent compared to the year-ago period, according to the latest payroll data, the retirement body said on the day. The provisional payroll data of EPFO showed that there was an addition of 13.95 lakh net subscribers in November last year. This is a rise of 2.85 lakh or a growth rate of 25.65 per cent compared to October 2021. A Provident Fund or PF is mandatory for all employees who get a basic pay of Rs 15,000.
“Year-on-year comparison of payroll data also shows an increase of around 3.84 lakh in net payroll additions (of Employees’ Provident Fund Organisation) in November 2021 as compared to 10.11 lakh net subscribers added during the previous year in November, 2020,” the labour ministry said in a statement on Thursday. These figures provide a perspective about the formal employment in the country. This shows that India added more employees during this period and there was an increase in the year-on-year number in terms of employment.
“Of the total 13.95 lakh net subscribers added during the month, 8.28 lakh new members have come under the social security cover of EPFO for the first time. Approximately 5.67 lakh net subscribers exited but rejoined EPFO by changing jobs within the establishments covered under the purview of EPF & MP Act, 1952,” said the statement.
“The subscribers opted to continue their membership with EPFO by transferring their PF accumulations from previous to present PF account instead of applying for final withdrawal,” it added.
All members of the EPFO get special benefits under Section 80C of the income tax act, including income tax exemption of up to Rs 1.5 lakh per financial year. Other than this, the EPFO offers several other benefits.
– All PF members get free insurance under the EDLI scheme of the EPFO. In case of the death of an employee during the service period, the nominee of the person becomes eligible for an insurance cover of up t Rs 7 lakh under the scheme. The account holder does not need to pay a premium for this insurance.
– A PF account holder can take a loan against their provident fund balance. The interest rate levied on this is just 1 per cent in case of financial emergencies. However, the money has to be paid within 36 months of the disbursal of the amount.
– During a financial or medical emergency, an EPFO member is eligible to withdraw his or her PF balance partially subject to some terms and conditions.
– If a PF account holder buys a home, he or she is eligible to withdraw up to 90 per cent of the balance, as per EPFO guidelines. The person can also use it for constructing a home or home loan repayment.
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Source: News18