Exclusive! This EPFO rule to be changed, 50 lakh more employees to benefit; Central govt takes big decision!
To bring added benefits to employees, certain regulations of the Employees' Provident Fund Organisation (EPFO) are going to be changed soon. The Ministry of Labor under the Central Government has issued a notification for the same.
To bring added benefits to employees, certain regulations of the Employees' Provident Fund Organisation (EPFO) are going to be changed soon. The Ministry of Labor under the Central Government has issued a notification for the same. The EPFO has taken this step to extend Social Security benefits to more employees. In addition to the existing 6 crore members, it has been decided to provide social security to about 50 lakh additional employees. These additional employees will be the ones whose PF money has still not been deducted. These new rules of Employees Provident Fund (EPF) will come into force from 1 January, 2020 onward.
Where does EPF rule apply?
According to EPF rules, Provident Fund applies where any institute, firm, office has 20 or more employees. Only such institutions are given EPF membership under the EPF Act. However, now the central government has reduced this limit to 10 employees for the purpose of providing social security more employees. In the coming days, it is also expected to have institutes with 10 or more employees to be covered under the ambit of EPF.
The institutions with 10 or more employees must register themselves under the Employees' Provident Fund and Miscellaneous Provisions Act to be covered under the EPF regulations. At present, only the institutions with 20 or more employees come under the purview of this Act.
Watch Zee Business Live TV below
Approval was received in 2008
No need for Parliament's approval
According to a senior EPFO official, the Ministry of Labor has now issued a notification regarding this change, as making amendments in labor laws does not require any approval from Parliament. These amendments will be implemented from 1 January 2020, without any delays from here.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.