EPFO Scheme: Rs 764 crore released to the pensioners

On May 5, 2020, the Employees Provident Fund Organization has released Rs 764 crores to the pensioners.

Highlights

• Around 135 field offices of the scheme processed the payment. 
• This has been done in advance to avoid inconvenience of the pensioners during lock down. 
• The bank branches all over the country have been directed to make sure the pension is credited on time.

EPFO

• The EPFO is Employment Provident Fund Organization. 
• It was established under the act EPF and Miscellaneous Provision Act, 1952. 
• The EPFO scheme is implemented by the Ministry of Labour and Employment.

EPFO Scheme, 1952

• It was the first EPFO scheme launched by GoI. 
• It paid the labourers accumulated amount and interest upon death and retirement. 
• It allowed partial withdrawals for marriage, education, house construction and illness.

EPF Scheme 1995

• The scheme benefitted disabled survivors that faced accidents during duty, widower and children.
• In 2014, Universal Account Number was launched for Employees that benefitted through EPFO. 
• In 2018-19, over 61 new subscribers joined the scheme

Social Security Code Bill, 2019

• The bill was introduced in 2019 to reduce employee contribution to Provident Fund. 
• The PF has two components namely Employees part and employers’ part. 
• The employees part currently stands at 12% of the basic salary. 
• The bill intends to provide an option to the employees to reduce their contribution.