Now, even idle EPF account will earn interest !

In a significant development, the Ministry of Labour has relaxed the definition of ‘inoperative’ employee provident fund (EPF) accounts, which do not earn any interest. Now, if an EPF account is lying idle for 36 months or more, it will not automatically be treated as inoperative, but will continue to accrue interest. The details are spelt out in a notification issued on November 11. This notification provides that an EPF account will be treated as operative on termination of employment and the EPF account holder will continue to earn interest, unless the employee concerned applies for withdrawal of the accumulated balance in his EPF account or takes up another job within two months, with another employer who is covered by the EPF scheme. On taking up a new employment, the EPF ...

More

Demonetisation: Rise in bond prices pushes up NPS returns but EPF rate may be cut

Demonetisation may have caused problems in daily life, but it has also given a boost to the retirement savings of millions of Indians. Bond yields, which were already on the decline, have plummeted 56 basis points since 8 November, pushing up bond prices. NPS funds, which hold long-term bonds, have benefitted from the development. All NPS investors, including some 50 lakh state and central government workers covered by the scheme, have earned double-digit returns in the past 1-5 years. NPS investors split their corpus across three different classes of funds so ET Wealth looked at blended returns of different types of investors. We found that ultra-safe investors, who put 60% of their corpus in G class gilt funds and 40% in corporate bond funds, have earned the highest returns. This is main ...

More

Last date for EPFO pensioners to submit life certificates is January 15

Providing breather to its around 50 lakh pensioners amid difficulties being faced in banks due to demonetisation, retirement fund body EPFO has extended the last date for submission of life certificate till January 15. “Employees’ Provident Fund Organisation (EPFO) has directed its over 120 field offices that the last date for submission of life certificate by pensioners is extended till January 15, 2017,” a senior official told PTI. “The decision is in line with the central government’s move to extend the date for submission of life certificate till January 15, 2017,” he said. As per the practice, the EPFO pensioners are required to submit their life certificate by November. In case the pensioners don’t submit their life certificate their pension ...

More

PF Money Transfer Becomes Easier, Here Is The New Rule

The Employees’ Provident Fund Organisation (EPFO) has further eased the norms for those who want to transfer their PF deposits on change of jobs. Retirement fund body EPFO has introduced a declaration form (new Form No 11), replacing the existing one. This new form contains a declaration by a person about his previous employment, KYC (know your customer) details etc. while taking up employment with a new organization. This new declaration form also replaces Form 13 (for transfer of PF accumulations from one employer to another) where the existing member to the provident fund makes a request for transfer of his/her fund through the UAN facility, EPFO said in a statement. UAN stands for Universal Account Number. It acts as an umbrella for the multiple member identification numbers allo ...

More

How Entrepreneurs Can Effectively Optimize Workforce And Management While Scaling Up

Entrepreneurship is a journey, and it seems like everyone goes through it a little differently. As a founder of 3 successful startups and having scaled these startups from 0-200 employees, Krishna RK shares his thoughts on what it takes for a startup to work at each stage. “Each phase has its own distinct challenges and way of finding success. It is critical for every entrepreneur to know which stage they are in, and what they need to do at each stage to become successful.” Common classification methods—such as classifying startups by the domain in which they operate (healthcare, manufacturing etc.), its target customers (B2C or B2B) or its technical domain (hardware or software)—are quite informative. Unfortunately, they provide little guidance about how to assess a startup. In doing so, ...

More