EPFO to Launch 'One Employee One EPF Account' System
The Employees' Provident Fund Organisation (EPFO) plans to launch a 'One Employee One EPF Account' system on May 1 to dissuade premature PF withdrawals and encourage state governments to join its pension system. The decision was taken on April 21 in a retirement fund body EPFO's internal meeting, a day after the government rolled back its decision to tighten PF withdrawal norms, restricting subscribers from withdrawing the employer's share of PF contributions (3.67 percent of basic wages) before the age of 58 years, among other things.
During the meeting, EPFO's Central Provident Fund Commissioner, V P Joy, discussed the unrest regarding the PF withdrawal norms. Mr. Joy emphasized the need for effective communication with employees and employers, stating that frequent withdrawals by employees on each job change, which is also encouraged by employers, need to be addressed through good service and a simple interface.
He was of the view that employers and employees must be able to view and access the money trail pertaining to their individual profiles. Mr. Joy also informed his colleagues that EPFO proposes to launch a system of 'One Employee One EPF Account' on May 1. He stated that once EPF services are improved, more people will voluntarily join the EPF system.
The Employees' Provident Fund Organisation (EPFO) plans to launch a 'One Employee One EPF Account' system on May 1 to dissuade premature PF withdrawals and encourage state governments to join its pension system. The decision was taken on April 21 in a retirement fund body EPFO's internal meeting, a day after the government rolled back its decision to tighten PF withdrawal norms, restricting subscribers from withdrawing the employer's share of PF contributions (3.67 percent of basic wages) before the age of 58 years, among other things.
During the meeting, EPFO's Central Provident Fund Commissioner, V P Joy, discussed the unrest regarding the PF withdrawal norms. Mr. Joy emphasized the need for effective communication with employees and employers, stating that frequent withdrawals by employees on each job change, which is also encouraged by employers, need to be addressed through good service and a simple interface.
He was of the view that employers and employees must be able to view and access the money trail pertaining to their individual profiles. Mr. Joy also informed his colleagues that EPFO proposes to launch a system of 'One Employee One EPF Account' on May 1. He stated that once EPF services are improved, more people will voluntarily join the EPF system.