False


Download Learnerz IAS app from the Play Store now! Download

$show=search/label/May%202022

 


Employees’ provident fund UPSC NOTE

SHARE:

  What is EPF – Beneficiaries EPF stands for Employees' Provident Fund.  It's a retirement savings scheme in some countries.   Benef...

 What is EPF – Beneficiaries

  • EPF stands for Employees' Provident Fund. 

  • It's a retirement savings scheme in some countries. 

  • Beneficiaries are the people who will receive the money in the EPF account after the member (the person who contributes to the account) dies.

  • There can be differences between how EPF beneficiaries are determined depending on the country. Here's a quick look at two examples:

  • India (EPFO): In India, nomination is crucial. 

  • You can nominate one or more beneficiaries, including your spouse, children, or other dependents. 

  • The nominee(s) will receive the EPF amount if you pass away

  • If there's no nomination or the nominee predeceases you, the distribution follows specific rules .

  • Malaysia (KWSP): Nomination works similarly in Malaysia. 

  • You can nominate beneficiaries through a designated form. 

  • If there's no nomination or the nominee dies before you, the distribution is determined

according to Islamic law for Muslim members and by the Civil Law Act 1956 for others.

On what grounds has a 15- year-old amendment to the law been struck down?

  • The Karnataka High Court recently struck down a 15-year-old amendment to the law which permits the incorporation of foreign workers in the Employees’ Provident Fund (EPF).

  • Accordingly, it quashed the special provisions for international workers under paragraph 83 of the Employees’ Provident Funds Scheme, 1952.

  • Paragraph 43A of the Employees’ Pension Scheme, 1995 (EP Scheme) for being “unconstitutional and arbitrary.

How will withdrawing employees’ provident fund benefits affect international workers in India, and Indian workers abroad?

  • The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is India’s pivotal social security legislation and regulates three main schemes — the EPF Scheme.

  • The EP Scheme and the Employees’ Deposit-Linked Insurance Scheme, 1976

  • It is administered through a statutory body — the Employees’ Provident Fund Organisation (EPFO). 

  • An establishment with a minimum of 20 employees is required to register with the EPFO and make Provident Fund (PF) contributions for eligible employees. 

  • In 2008, the 1952 Act was amended to bring international workers or expatriates within the fold of the statute. 

  • As per the amendment, international workers employed in India for a minimum period of six months are mandated to make PF contributions which include 12% of the employee’s total salary. 

  • A matching contribution is made by the employer for each of these workers

  • However, contrary to their domestic counterparts, the wage ceiling of ₹15,000 per month for availing PF benefits does not apply to international workers

  • Withdrawal of PF accumulations by international workers based in India is permitted only upon retirement from service in the establishment at any time after the attainment of 58 years of age.

  • Upon retirement on account of permanent incapacity for work due to bodily or mental incapacity and pursuant to any stipulations under existing Social Security Agreements (SSAs).

What is the response from the Employees’ Provident Fund Organisation?

  • The Ministry of Labour and Employment through the EPFO has issued a statement saying that it was “actively evaluating the future course of action.” 

  • The appeal is being prepared and the argument will be based on special provisions in the

  • scheme that are drafted with specific purposes of protecting the interests of Indian workers abroad. 

  • The EPFO is also consulting representatives of employers and employees to clear apprehensions.

  • Referring to the SSAs executed with 21 countries so far, the EPFO’s press release said,

  • These agreements aim to guarantee the uninterrupted social security coverage of employees during international employment.

  • These agreements are very important for India for promoting international mobility and leverage the demographic dividend


COMMENTS

Name

Amritsar,1,April 2024,301,Art & Culture,11,August 2023,251,August 2024,400,Courses,7,Daily Current Affairs,51,December 2023,189,December 2024,76,Disaster Management,2,Environment and Ecology,323,February 2024,228,Foundation Course,1,Free Class,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,311,Govt Schemes,2,GS 2,1,GS1,56,GS2,454,GS3,291,GS4,1,GST,1,History,12,Home,3,IAS Booklist,1,Important News,71,Indian Economy,310,Indian History,24,Indian Polity,341,International Organisation,12,International Relations,260,Invasive Plant,1,January 2024,240,July 2023,281,July 2024,375,June 2022,6,June 2023,268,June 2024,324,March 2024,238,May 2022,17,May 2024,330,Mentorship,2,November 2023,169,November 2024,341,Novermber 2024,2,October 2023,203,October 2024,369,Places in News,2,Science & Technology,318,Science and Technology,119,September 2023,205,September 2024,336,UPSC CSE,115,UPSC Tips,4,
ltr
item
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Employees’ provident fund UPSC NOTE
Employees’ provident fund UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
https://www.learnerz.in/2024/05/employees-provident-fund-upsc-note.html
https://www.learnerz.in/
https://www.learnerz.in/
https://www.learnerz.in/2024/05/employees-provident-fund-upsc-note.html
true
4761292069385420868
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content