One of the best news for 25 million employees employed in private companies, public corporations, corporations, factories and so on, which are within the “Employee pension scheme 1995”.
Employees Provident Fund Organization (EPFO) has said that any employee should have a claim settlement within 20 days of retirement. If the relevant office does not do this then the file will be summoned directly to the Delhi office. The order has been issued to all regional offices.
Within seven days of death, the claim will settle
EPFO offices will have to settle the claim within 7 days of the death of the employee. Employees Provident Fund Welfare Committee said that till date the deadline for settlement of these claims was not fixed. This caused many employees to wait long for the pension. Now, this system will greatly benefit the employees.
Out of the salaries of employees employed in private companies, 12% and so on are deducted from the employer’s account. This amount gives interest rate fixed by the organization. Now the interest rate is 8.65% annually.
At the age of 58 years of employee retirement, this amount is returned with interest. Not only that, 75% of the amount deposited from the employer’s share goes to the pension fund. After the retirement, the amount is paid to the dependent person after the employee in the form of pension and the death of the dependent person.