The Employees’ Provident Fund Organization (EPFO) is considering giving an opportunity to all its subscribers to opt for equity investment. Till now crores of subscribers of EPFO do not have this option and EPFO itself invests up to 15% in equity market through its fund managers.
Increased interest of people in NPS
In fact, the interest of people in the PFRDA regulated National Pension Scheme (NPS) is increasing rapidly, as the National Pension Scheme gives the option of investing in equities from private employees to government employees, and there is also the flexibility to fix the investment limit. . Under the National Pension Scheme, the subscribers are getting an average return of up to 12% in equity investment.
EPFO also on the way to NPS
Therefore, on the lines of NPS, EPFO can also give an opportunity to its crores of subscribers to fix the limit of total investment by increasing the limit of equity investment for better returns. However, there is a possibility of one thing in this that in no case more than 50% of the contribution will be allowed to be invested in equities. If this happens, then employees will get an opportunity to invest more part of their EPFO investment in equities, which will benefit in the form of higher returns.
Employee’s EPF contribution to increase by 12%!
In the coming days, many more big decisions related to Employees’ Provident Fund (EPFO) can be taken in the meeting of the Central Board of Trustees. At present, 12 percent of the basic salary of an employee of a company is deposited in the Employee Provident Fund (EPF), and the company’s management can increase it, but the EPFO is of the view that in the coming days, the employee will now have to contribute more than 12 percent. Option to deposit in EPF will be given.
