Govt Reduce Penalty For Default In Contribution To 3 EPFO Schemes

EPF, EPS & EDLIEPF: Currently, companies with over 20 employees must enroll in the Employees’ Provident Fund (EPF) scheme and deduct provident fund contributions of up to 12 per cent from employee salaries, with an equal contribution by employers. The EPF scheme provides 8.25 per cent interest on the contributions. Premature withdrawal is allowed for specific purposes. Employees can receive a pension after serving for a minimum period of 10 years and reaching the age of 50.EPS: Though EPF contribution is matched equally by the employer, 8.33 per cent of the employer’s contribution goes to the Employees Pension Scheme (EPS). Using the contribution of this fund, employees receive a pension after serving for a minimum period of 10 years or once they reach the age of 50.EDLI: Employees contribute 0.5 per cent of the basic pay or a maximum of Rs 75 per employee into the Employee Deposit Linked Insurance Scheme (EDLI). The EDLI scheme offers life insurance coverage to employees and is available to all employers who provide EPF provision to their employees. The claim amount under the Employee Deposit Linked Insurance (EDLI) is 35 times the average monthly salary of the past 12 months, with a maximum limit of Rs 7 lakh.

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