Source | The Financial Express : By Surya Sarathi Ray
Enthused by an encouraging response to its first three-month enrollment programme through which over 30 lakh new subscribers joined, retirement fund body Employees’ Provident Fund Organisation (EPFO) will soon extend the programme for another three months with effect from April 1. “We are extending the programme. The labour ministry will issue the notification soon. The terms and conditions will remain the same,” central provident fund commissioner V P Joy told FE. With the broader aim of universalising the scheme for all eligible workers, the retirement fund body launched the scheme first in January to rope in both past and new workers.
Under the scheme, for past workers (workers with their past service), an employer does not have to pay damages and administrative charges. Employers will have to remit only their contribution and 12% interest on the amount. If employees’ contribution was not collected, this doesn’t have to be paid.
New employers will have to pay just 3.67% with the remaining 8.33% coming from the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for first three years. However, for the apparel sector, there is no employers’ contribution for new employees for three years. The scheme is also open for new employees, new establishments and voluntary enrollments.