Employees Under the Employees Provident Fund(EPF) to be Provided two Options
The Union Finance Minister Shri Arun Jaitley has announced that with respect to Employees Provident Fund (EPF), the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme (NPS). Secondly, for employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer’s contribution. He said, with respect to ESI, the employee should have the option of choosing either ESI or a Health Insurance product, recognized by the Insurance Regulatory Development Authority (IRDA).
The Finance Minister announced that he intends to bring amending legislation in this regard, after stakeholders’ consultation.
the compulsion of to buy annuity of 80% of matured amount if we take retirement before 60 years under nps system is not favourable for employees.it should depend on the employee at retirement whether he want to buy annuity or invest it somewhere else.i will definately go for epf nd i think that is good decision by govt.