New Delhi: Retirement fund body the Employees’ Provident Fund Organisation (EPFO) is aiming to reduce the confusion of EPF members regarding the Provident Fund (PF) amount they receive at the time of final settlement. It has decided to provide a worksheet of PF calculation at the time of withdrawal in order to increase transparency.
EPFO has instructed its regional offices that this calculation list should be sent to the subscribers either on their registered mobile number or on the email provided by them in their EPF claim form. One point to be noted here is that this worksheet will be given irrespective of the fact that members filed their claim online or offline.
“From Employees’ Provident Fund Scheme, an employee is eligible for lump-sum Provident Fund withdrawal covering his/her own contribution, employer’s contribution and interest on both under specified circumstances such as retirement or termination of employment (provided the employee is not employed in another Provident Fund covered establishment for 2 months),” The Economic Times quoted Puneet Gupta, director, People Advisory Services, EY India as saying in a report.
“The calculation sheet for provident fund withdrawal proposed to be provided by the Provident Fund office will help employees understand the details of lump-sum Provident Fund withdrawal received by them. It is proposed that the calculation sheet will be provided either on registered mobile number or email-id as provided in the claim form. The Provident Fund office has clarified last week that a similar worksheet will be provided for a pension benefit. These are welcome steps as it will bring transparency and reduce employee grievances”, he further told the financial daily.
EPFO in another similar directive issued on March 14, 2019, directed its regional offices to provide the calculations to the pensioner on the pension being sanctioned. As per the circular, the pension worksheet will be containing information on the quantum of monthly pension. This will reduce their grievances and confusion on how their pension amount is calculated. This will help to bring in transparency in the settlement of pension claims.
EPFO has also asked its regional offices to provide a copy of the pension worksheet along with the intimation sent to the pensioner regarding sanction of pension. All EPF pensioners are covered in this circular.
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