The scope of the unorganized sector in India is huge. These people do not get the benefit of any kind of social security. EPFO also gives pension to those people whose PF is deducted for 10 years. In such a situation, many people are deprived of the pension facility available.
EPFO has solved this problem. Recently, the Provident Fund Organization has recommended a new scheme. Under which those people can also be brought under the purview of pension, who are not getting pension till now. Let us know about this plan.
Government can make changes in the Act-
According to the EPFO, the Employees Provident Funds and Miscellaneous Provisions Act, 1952 will have to be amended to bring all the employees and self-employed people in the unorganized sector under the purview of EPFO.
In order to enable people in the unorganized sector to take advantage of the retirement savings scheme, the EPFO has recommended the removal of the salary and employee limits. In this act, if the limit like the number of employees and salary will be removed, then the people doing business will also be able to get the benefit of this new scheme.
Now this is the rule-
According to the rules of EPFO, the same company or firm is registered in EPFO. Where at least 20 employees work. According to reports, EPFO is in talks with all stakeholders for the new scheme and state governments are also being approached for the same. At present EPFO has more than 5.5 crore subscribers.
The fund of the Employees’ Fund Organization will increase-
EPFO gives provident fund, pension and insurance to its account holders through EPF, Employee Pension Scheme and Employee Deposit Linked Insurance Scheme.
If the Act is changed, then the subscribers to the Employees’ Provident Fund organization will increase and this will also increase the corpus of EPFO.
