Lok Sabha Question No. 4875 (UNSTARRED), answered on 2018-03-26
Subject: Modifications in EPFO Rules
Ministry: LABOUR AND EMPLOYMENT
Asked by: M. B. RAJESH

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

UNSTARRED QUESTION NO. 4875

TO BE ANSWERED ON 26.03.2018

## MODIFICATIONS IN EPFO RULES

4875. SHRI M.B. RAJESH:

Will  the  Minister  of  LABOUR  AND  EMPLOYMEN  be  pleased  to state:

- (a)whether  any  changes  or  modifications  have  been  made  in  the Employees  Provident  Fund  Organisation  (EPFO)  Rules  during  the last two years;
- (b) if so, the details thereof;
- (c)the  details  of  the  newly  included  conditions  by  EPFO  for  getting pension for an EPF member; and
- (d)whether the option for return of capital is available thereunder and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is a social security legislation to provide for the institution of provident funds, pension fund and deposit-linked insurance  fund  and  is  applicable  to  establishments  which  belong  to industries  and  classes  of  establishments  listed  in  Schedule-I  and where number of employees is 20 or more.  The three Schemes framed under the said Act include (a) The Employees' Provident Funds (EPF) Scheme, 1952; (b) The Employees' Pension Scheme (EPS), 1995; and (c) The Employees' Deposit-Linked Insurance (EDLI) Scheme, 1976.

The major changes or modifications made in the above three Schemes  during  the  last  two  years  viz.  2016  and  2017,  inter-alia, include:

-  enhancement  of  the  maximum  assurance  benefit  under  EDLI Scheme, 1976  in the event of death from Rs.3.60 lakh to Rs.6.00 lakh;
-  limiting the liability of the Pension Fund in the event of death of a member  in  respect  of  whom  no  contribution  is  received  for  a period of 36 months;
-  amendment  in paragraph 72(6) of the EPF  Scheme,  1952 wherein changes have been made in the conditions leading to a Provident Fund account becoming an Inoperative Account;
- 
- launching  of 'Employees' Enrolment Campaign 2017';
-  provision for allowing private sector banks to contribution from employers under the Schemes;
- collect
-  reduction  in  administrative  charges  under  EPF  Scheme,  1952 from 0.85 per cent. to 0.65 per cent. of the wages, etc.

(c): Membership under the EPS, 1995 in case of new entrants after 1.9.2014 has been made applicable where the pay is less than or equal to Rs.15,000/- only. Existing members who were contributing on higher  wages  to  the  Pension  Fund    as  on  1.9.2014    were  allowed option  to  continue  to  contribute  on  higher  wages  after  1.9.2014 provided they contribute @ 1.16 per cent. on salary  exceeding Rs.15,000/-, as an additional contribution.  The fresh option was to be exercised  within  a  period  of  six  months  from  1 st   September,  2014, extendable further for a period not exceeding six months.

The  pensionable  salary  shall  be  the  average  monthly  pay  of sixty  months preceding the date of exit from the membership of the Pension Fund instead of 12 months, with effect from 01.09.2014.

The  provision  for  return  of  capital  has  been  deleted  from

(d): the EPS, 1995 with effect from 26.9.2008.

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