If one has not opted for PF due to contract employment, what challenges might they face, and what changes would they need to make if they wish to opt for PF in the future?
From India, Hyderabad
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1From India, Hyderabad
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Hi Shivaprasad,
You should appreciate the fact that EPF & EPS are social benefits for the member employees, and there is no option whether or not to become a contributing member employee. Employers are legally bound to comply with this statutory obligation. Not participating in the EPF scheme is not only illegal but also means you forego other linked benefits like:
i) equivalent contribution from the employer
ii) interest on the contributions from both the employee and employer for the accumulation in this account
iii) EPS - when you become a member of the EPF scheme by opening up your account and start contributing, a portion of the matching contribution from the employer's contribution is automatically bifurcated and added to your Pension account.
iv) DLI - Insurance in the event of a death benefit
v) Income tax reliefs under sec.80C for this contribution up to Rs. 1.50 lakhs.
vi) Nomination facilities in the event of the death of a member and family pension after the demise of the member, etc.
From India, Bangalore
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You should appreciate the fact that EPF & EPS are social benefits for the member employees, and there is no option whether or not to become a contributing member employee. Employers are legally bound to comply with this statutory obligation. Not participating in the EPF scheme is not only illegal but also means you forego other linked benefits like:
i) equivalent contribution from the employer
ii) interest on the contributions from both the employee and employer for the accumulation in this account
iii) EPS - when you become a member of the EPF scheme by opening up your account and start contributing, a portion of the matching contribution from the employer's contribution is automatically bifurcated and added to your Pension account.
iv) DLI - Insurance in the event of a death benefit
v) Income tax reliefs under sec.80C for this contribution up to Rs. 1.50 lakhs.
vi) Nomination facilities in the event of the death of a member and family pension after the demise of the member, etc.
From India, Bangalore
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