This step of EPFO will directly benefit lakhs of people whose jobs have been lost due to some reason. Now such people can join back with EPFO even by paying Rs 500 every month.
The benefits of PF, Pension and EDLI can be availed even if the job has been lost due to Corona epidemic or any other reason. EPFO is going to make an important change for this. Millions of people can benefit from this.
You will be able to avail benefits by paying just Rs 500
According to a report in ET, EPFO (Employees’ Provident Fund Organization) is in the process of bringing a special scheme for those people who have been members in the past. People who are forced to go to the informal sector due to job loss or any reason will be able to take advantage of this by contributing a minimum of Rs 500 or 12 percent income every month. Quoting a government official, it has been said in the report that work has started on this proposal.
Millions of people will get relief
According to an EPFO estimate, around 48 lakh people opted out of EPFO subscription during 2018-2020. Due to the Corona epidemic, later this figure can increase significantly. If this proposal of EPFO can get off the ground, then it will give relief to lakhs of people.
These benefits will be available with more interest
With this, the subscribers will not only be able to get more interest from any savings account or many other savings schemes, but also they will get insurance cover of up to seven lakhs under Pension (EPS), PF and Employees Deposit Linked Insurance. Will also benefit. The EPFO interest rate for the financial year 2020-21 is 8.5 percent. This is better than the interest available on savings account and fixed deposit. At present, banks are offering interest ranging from 3.5 percent to 6.25 percent on the savings account. If we look at FD, banks are currently giving interest at the rate of 2.5 percent to 5.75 percent.