In 2021, 11.4 per cent of the total EPFO members were from Karnataka.
The number of new female EPFO members has increased in the month of January, 2023. Out of 2.87 lakh female members, 1.97 lakh females are new joinees.
Komal Mistry, an employee at one of the Big Four accounting companies, said, “I have been working here for past eight years. And the proportion of EPF is 50-50. This means thatI give 50 per cent and my company gives the other 50 per cent. I am right now giving approximately 15 per cent of my salary to EPF. But the system of EPF differs from company to company.”
A press release by the Ministry of Labour and Employment shows that in the month of January, 2023, EPFO added14.86 lakh members.
According to Karnataka economic survey reports, Karnataka contributed 8.3 lakh of net new subscribers in Employees’ Provident Fund Organisation (EPFO) from April 2021 to October 2021, which is 11.4 per cent of the total subscribers of 72.9 lakh in India.
An EPFO report states that within the last 11 months of the current financial year, over 1.47 crore new subscribers have joined. This indicates that more people are taking steps to save for their retirement, which could lead to greater financial security in the future. However, in the year 2021-2022, over 1.38 crore net new subscribers were added.
EPFO is an organization responsible for providing social security benefits in the form of Provident, Pension and Insurance Funds to the organized workforce of the country. It is covered under the provisions of Employees’ Provident Funds & Miscellaneous Provisions Act, 1952.
Dr Saurabh Malhotra, Economics Professor at Safalta Group, said, “Any company which has over 20 employees has to provide EPF to their employees. The society is changing and more women are joining the formal sector. Women are not just considering household chores as their primary job; they are getting out of their houses and taking up jobs.”He added that any person who joins the formal sector must be given EPF.
EPFO Higher Pension
TOI reports that it is mandatory for applicants to submit a proof of prior permission for PF contribution, based on their actual salaries, to opt for higher pension. But on April 12, 2023; the Kerala high court has opposed the need of making it mandatory.
The Kerala high court gave 10 days to the manager of pension fund to remove the mandatory submission under Para 26 (6) from its application.
The new higher pension application form has confused the applicants about the method of application, how to proceed and what interest is payable. EPFO has assured that it will clarify all the doubts through a circular.
