EPFO( Employees’ Provident Fund Organisation) is going to discuss in the 233rd meeting of the Central Board of Trustee ( CBT) which is currently held on 27- 28 March 2023. Previously,it was planned to be held on 25-26 march but due to administrative reasons it was postponed. IT was chaired by Union labour and employment minister Shri.Bhupender Yadav, In this meeting the board will discuss some key Highlights.
So here we discuss what key changes are taken place in EPFO:-
The main motive of this meeting is to discuss some major changes that take place in EPFO. Around 6 crore active subscribers will be affected from the decisions taken during this meeting.
1.Higher Pension Benefits:- After Supreme Court Order, The CBT is expected to have a detailed discussion on higher pension options for subscribers and Pensioners service year limit is 35 years but after this board meeting it was expected that it will be increased above 35 years and till may 3 you can also apply for higher pension based on actual salary.The option was seen with a solution of 2 issues
1.Increment in the number of Pensioners.
2.The gap between the net present value(NPV) of contribution & benefits.
2. Minimum Pension Amount under EPS: With this scheme,The Central Board of Trustees previously announced that the minimum pension rate is 1000 Rs. per month but now according to Zee news report, it is assumed that they look at increasing it to Rs.3000 per month.
3.Interest Rates:- As we see last year in march 2022, CBT will announce the interest rate for EPF is 8.1% which is later approved by the Financial Ministry in June 2022. Previously it was 8.5% in the year 2020 and 2021 EPFO with an estimated Rs 450 crore surplus.
4.Changes to withdrawal benefits:- During the meeting it was expected that CBT also discuss some steps to improve EPFO coverage with increasing investment of equity instruments and risk profile of subscribers with 6 month withdrawal of EPF amount now it is expected that after this meeting the months of withdrawal will be less than 6 months.
5.Minimum wages:- In 2014, Minimum wages were Rs.6000 a month but now it was increased to Rs.15000 in 2022 but currently it is likely to be raised from Rs.15000 to Rs. 20000 per month for companies who have at least 20 employees.