EPFO
- February 8, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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EPFO
TOPIC: Economy
Context- The Employees’ Provident Fund Organisation will meet on March 4-5 in Guwahati to decide on the interest rate for its subscribers for the financial year 2021-22.
Concept-
Employees’ Provident Fund Organisation (EPFO):
- It is a government organization that manages provident fund and pension accounts of member employees and implements the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
- It is administered by the Ministry of Labour & Employment, Government of India.
- It is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.
Employees Pension Scheme (EPS):
- It is a social security scheme that was launched in 1995.
- The scheme, provided by EPFO, makes provisions for pensions for the employees in the organized sector after the retirement at the age of 58 years.
- Employees who are members of EPF automatically become members of EPS.
- Both employer and employee contribute 12% of employee’s monthly salary (basic wages plus dearness allowance) to the Employees’ Provident Fund (EPF) scheme.
- EPF scheme is mandatory for employees who draw a basic wage of Rs. 15,000 per month.