Focus: GS II: Polity and Governance
Why in News?
Recently, the Employees’ Provident Fund Organisation (EPFO) has extended the deadline for members and pensioners to apply for higher Provident Fund (PF) pensions till July 11.
About Employees’ Provident Fund Organisation
The Employees’ Provident Fund Organisation (EPFO) is a statutory body established under the Employees’ Provident Fund and Miscellaneous Provisions Act of 1952.
Here are some key points about EPFO:
- EPFO is responsible for administering the Employees’ Provident Fund (EPF), Pension Scheme (EPS), and Deposit Linked Insurance Scheme (EDLI) for the organized sector workforce in India.
- The EPF scheme allows employees to contribute a portion of their salary towards a provident fund, which accumulates with interest and provides a lump sum upon retirement or death.
- Partial withdrawals from the EPF are allowed for specific purposes such as education, marriage, illness, and house construction.
- EPFO also operates the EPS, which provides monthly pension benefits for superannuation, disability, survivor, widow(er), and children.
- The EPS also includes a minimum pension for disablement and provides past service benefits for participants of the erstwhile Family Pension Scheme.
- The EDLI scheme offers insurance coverage to EPFO members, providing a benefit in case of the member’s death. The benefit amount is calculated as 20 times the wages, with a maximum benefit of 6 lakh rupees.
- EPFO is governed by the Central Board of Trustees, Employees’ Provident Fund, which consists of representatives from the government, employers, and employees.
- EPFO has a wide presence across the country, with offices located in 122 locations.
- It is one of the largest organizations globally in terms of clientele and the volume of financial transactions it handles.
- EPFO operates under the administrative control of the Ministry of Labour and Employment, Government of India.