EPFO New Year gift for 50 lakh employees! Ministry of Labour issues changed set of Provident Fund regulations
After lowering the employees' limit from 20 to 10, nearly 50 lakh additional employees will come under the EPFO aegis, say experts.
The EPFO or Employees' Provident Fund Organisation has decided to extend EPF and PF benefits to those employees whose PF is not being deducted as they did not fall under its umbrella. This EPFO step will benefit an additional 50 lakh employees. The decision has been taken positively by the Ministry of Labour and Employment and the concerned minister Santosh Gangwar has already issued a notification in regard to the changing set of regulations. The changed EPFO rules will become effective from 1st January 2020. Employees in the two new Union Territories Jammu and Kashmir and Ladakh will also get the benefit of this new EPFO rule. For more details on the changes in EPFO rules, one can log in at epf.gov.in — the official website of the EPFO.
Speaking on how the changed EPFO rule will benefit the EPF and PF account holders Jitendra Solanki, a SEBI registered tax and investment expert said, "Earlier the EPFO law was to open PF account of the employees if the number of employees at any organisation is 20 or above. Now, it has been cut down to 10, so around 50 lakh additional employees are expected to come under the EPFO subscriber net." Solanki said that after the abolition of Article 370 in Jammu and Kashmir, the new EPFO rule will be applicable in the two new Union Territories of Jammu and Kashmir and Ladakh.
See Zee Business Live TV streaming below:
However, it has to be noted that changes in the labour law need not any kind of parliamentary approval. but, same changes need approval from the parliament as it happened in July 2008. As the EPFO changes have been approved and the Ministry of Labour has issued the notification in regard to the changed set of labour regulations, the new EPFO rule will become effective in J&K and Ladakh also.