EPFO has recently introduced several significant updates aimed at improving the ease of access and benefits for its subscribers.
These changes are part of the government’s ongoing efforts to modernize the retirement fund system and enhance the overall experience for employees.
New EPF Account Rules
In May 2024, EPFO announced four major changes to the EPF account and claims process.
These changes include an extended facility of auto-settlement, multi-location claim settlement, faster death claims, and an increase in the amount for receiving advances for medical conditions.
The auto-settlement facility now covers claims up to Rs 1 lakh under various heads without any human intervention.
Starting April 1, 2024, EPFO introduced a new rule that enables the automatic transfer of old PF balances to the new employer when an individual changes jobs.
This eliminates the need for manual requests and streamlines the process, making it easier for employees to manage their Provident Fund accounts.
Ashish Aggarwal, Director of Acube Ventures, commented, “With a streamlined process, it’ll be easier to move different employees from one department to another, without the hassle of manual requests and administration chores.”
New EPFO Schemes for First-Time Employees
As part of the Budget 2024, Finance Minister Nirmala Sitharaman announced three new schemes to enhance employment through EPFO.
These schemes aim to benefit first-time employees, encourage job creation in the manufacturing sector, and support employers for additional employment.
The schemes include an Employment Linked Incentive for first-time employees.
It also includes incentives for job creation in the manufacturing sector, and support for additional employment across all sectors.
In a significant update, EPFO has directed its field offices to make the option of higher pension available to eligible subscribers.
This change was enforced in accordance with a November 4, 2022 order by the Supreme Court.
The higher pension option provides additional financial security for retirees, ensuring a more comfortable retirement.
EPFO Growth and Membership
EPFO has seen substantial growth in its membership, with a net addition of 19.50 lakh members in May 2024.
The organization has also recorded significant growth in the 18-25 age group. This reflects the increasing participation of young workers in the formal sector.
The recent updates to EPFO are designed to improve the ease of access, benefits, and overall experience for its subscribers.
These changes reflect the government’s commitment to modernizing the retirement fund system and supporting the workforce.
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