The Central Government is preparing for major changes in the pension of the Employees Provident Fund Organization (EPFO). According to sources, many proposals are being seriously considered to make EPFO more attractive. Consideration is also being given to simplifying the process of giving benefits to children as nominees, especially in case of death of parents. These changes may come into effect by the middle of next year.
According to the information received, the process till now under EPFO is old. Preparations have been made to modernize this entire process. Like the banking system, the central government is also going to make changes in the EPFO system. If this happens, the employees will benefit the most.
Preparation to implement debit card concept
According to sources, the Labor Ministry is also considering the option of issuing cards to EPFO account holders on the same lines as debit cards are issued to bank account holders, which will give more flexibility to the account holder in withdrawing money.
More than 12 percent can be cut
The Central Government is considering that if an employee wants to voluntarily deduct a large part of his earnings in EPFO, then he can do so. As of now, any employee can contribute only 12 percent of his total earnings to EPFO.
