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Changes in the present PF and pension scheme
Posted on: 28/Apr/2015 11:25:31 AM
Finance Minister Arun Jaitley in his Budget speech for 2015-16 has mentioned that there will be changes in the present PF and pension scheme. Formal sector workers may soon have an option to choose between the New Pension Scheme (NPS) and the Employees` Provident Fund Organization-run EPF scheme.
A proposal in this regard, part of the bill to make comprehensive amendments to the Employees` Provident Funds and Miscellaneous Provisions Act 1952, is expected to be discussed by the Cabinet this week.
The tripartite discussion on the bill is over and it would be put up for Cabinet`s approval sometime next week. One of the proposed amendments also authorizes central government to waive off mandatory PF contributions by workers with certain threshold of monthly income.
The source further revealed that retirement fund body EPFO will be the regulatory body for monitoring the implementation of the scheme as there could be cases where worker neither go to EPF nor NPS. Another amendment in the bill proposed to change the definition of wages, which would include basic pay and all allowances paid to workers. This would increase PF contributions by workers and employers but result in higher saving for employees.
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