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Friday, July 21, 2017

EPFO asks field offices to settle employees pension, gratuity on retirement day

New Delhi: Retirement fund body Employees’ Provident Fund Organisation (EPFO) has issued directions to its field offices to settle pension benefits to employees on the day of retirement itself, Parliament was informed on Wednesday. 

“Directions have been issued by EPFO to all its field offices to make the payment of provident fund and pension to members of Employees’ Provident Funds (EPF) Scheme, 1952 and Employees’ Pension Scheme (EPS), 1995 on the date of retirement itself,” labour minister Bandaru Dattatreya said in a written reply to the Rajya Sabha. 
 
He was responding to a question if the government had decided to settle the PF/EPF, gratuity of retiring on the day of retirement itself.

“As regards settlement of gratuity, as per Payment of Gratuity Act, 1972, the employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom the gratuity is payable,” the minister added.

In June 2014, the government had decided to give pension payment order to an employee on the day of retirement itself with the aim to ensure a life of dignity for pensioners.

There are about 48.85 lakh central government employees and 55.51 lakh pensioners in the country.
Source :  http://www.livemint.com/

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