Home  /  Daily Current Affairs  /  28-02-2022 / Employees’ Provident Funds (EPF) Scheme

Employees’ Provident Funds (EPF) Scheme

Posted on February 28, 2022 by admin1  1494

In Context 

  • More subscribers left the Employees’ Provident Funds (EPF) scheme than the number of new people who joined in the past two years, suggested the latest numbers released by the Union Ministry of Statistics & Programme Implementation.

About 

  • In 2020-21, 8.55 million new subscribers were added to the scheme, while 9.78 million subscribers exited it. 
  • The trend continued in 2021-22 (till December 2021), with 7.9 million new subscribers and 8.18 million exits. 
    • The number of members subscribing to this scheme gives an idea of the level of employment in the formal sector.

About Employees’ Provident Funds (EPF) scheme

  • EPF is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. 
  • It is managed under the aegis of Employees’ Provident Fund Organisation (EPFO).
  • It covers every establishment in which 20 or more persons are employed (and certain other establishments which may be notified by the Central Government even if they employ less than 20 persons each).
  • The employee has to pay a certain contribution towards the provident fund and the same amount is paid by the employer on a monthly basis. 
    • At the end of retirement or during the service (under some circumstances), the employee gets the lump sum amount including the interest on PF contributed which gets accrued
  • The Central Board of Trustee, which is a key decision making body for EPFO, takes a call on the interest rates that have to be provided on the provident fund deposits, every year.
    •  Once CBT decides an interest rate on EPF deposits for a fiscal year, it is sent to the Ministry of Finance for concurrence.
    • EPFO provides a rate of interest only after it is ratified by the government through the finance ministry.
  • In 2021, the interest rates on deposits were set at 8.5% and the rates for the current financial year will depend on the income projections for the year.

Source:LM

 
Previous article Lachit Borphukan
Next article NSE Co-location Scam

Other News of the Day

In News The issue of co-location has come into the limelight once again in the wake of the latest order by the market’s regulator sanctioning former National Stock Exchange (NSE) MD and CEO over decisions taken by her under the alleged influence of a mysterious ‘yogi’. About Meaning: Co-location facilities are certain dedicated spaces in...
Read More

In Context  India and France are close to concluding a deal, likely in the next couple of months, for the joint development of a 125 KN engine for the indigenous fifth generation Advanced Medium Combat Aircraft (AMCA) under development The collaboration is between the Defence Research and Development Organisation (DRDO) and French engine maker Safran....
Read More

In Context  India is celebrating National Science Day on February 28  About  National Science Day, observed on February 28, marks the discovery of the Raman Effect, in the year 1928. The Government of India designated 28 February as National Science Day (NSD) in 1986.  On this day,In the year 1928, CV Raman discovered the Raman...
Read More

In News Marine biologists have welcomed the Tamil Nadu government’s recent decision to go ahead with the establishment of a conservation reserve for the elusive dugong. About Location: Dugong conservation reserve would be established in the Gulf of Mannar, Palk Bay between India and Sri Lanka. Dugong  Also called the Sea Cow. In an interesting...
Read More

In News  The U.S., Europe and several other western nations are moving to exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT). What is SWIFT? SWIFT is a messaging network used by banks and financial institutions globally for quick and faultless exchange of information pertaining to financial transactions.  SWIFT was founded in the...
Read More

In News  Recently, Securities and Exchange Board of India (SEBI) noted that the National Stock Exchange (NSE) was a systemically important market infrastructure institution (MII). Background  The National Stock Exchange (NSE), the country's largest equities and derivatives exchange, was fined earlier this month for laxity in governance pertaining to actions taken during the tenure of...
Read More

In News The latest edition of Munich Security Conference assumed significance as it was here that the Ukrainian President appealed for help ahead of the Russian invasion. Background The security conference set up by an anti-Hitler German has come a long way over the last six decades. Munich gained a grim reputation during the 1973...
Read More

In News Recently, the Cabinet approved implementation of Ayushman Bharat Digital Mission with a budget of ?1,600 crore for five years. About The National Health Authority (NHA) will be the implementing agency.  The pilot of the ABDM was completed in the six Union Territories of Ladakh, Chandigarh, Dadra & Nagar Haveli and Daman & Diu,...
Read More