Saatth ke Baad Karoge Thaath!
Everyone can retire happily now.
Just add Rs 100/- per month in your NPS Swavalamban account and get contribution of Rs 1000/- per year from government. Visit www.pfrda.org.in or call at 1800 110 708 for more details.
How to open a new Atal Pension Yojana
The Atal Pension Yojana aims to provide pension to workers in the unorganised sector. Under APY, the government contributes 50% of the subscriber’s contribution or Rs 1,000, whichever is lower, for 5 years for persons who join the scheme between June and December 2015. The APY guarantees a minimum monthly pension of Rs 1,000 to Rs 5,000.
The APY is applicable to all citizens in the age group of 18 to 40 years. To join the APY, the applicant must have a bank account. The applicant should also have a mobile number to be furnished to the bank.
The APY subscriber registration form needs to be filled up by the applicant. The form can be obtained from the bank offering Atal Pension Yojana and submitted there itself. Personal details, bank details and monthly contribution amount needs to be filled and signed by the applicant.
The bank account to be linked for APY is required to be KYC compliant. This KYC is sufficient for enrolling under the APY. Furnishing Aadhaar details is recommended at the time of registration. If Aadhar is not available, they may be submitted at a later stage.
Existing subscribers of NPS Swavalamban Yojana
All registered subscribers under Swavalamban Yojana of the NPS aged between 18-40 years are automatically migrated to APY with an option to opt out. However, the benefit of 5 years of government co-contribution under APY would be available only to the extent availed by the Swavalamban subscriber already.
Points to note
1. It is important to maintain a balance in the savings account to provide for the monthly contribution under APY.
2. If the subscriber fails to contribute to the scheme for a period of 6 months from the due date, the account is frozen. If the period exceeds 24 months, the account is closed.
3. Beneficiaries who are covered under statutory social security schemes are not eligible to receive government co-contribution.
NEW DELHI: Formal sector workers may soon have an option to choose between EPF scheme run by retirement fund body EPFO and New Pension Scheme (NPS) and a proposal in this regard is expected to be discussed by the Cabinet next week.
The proposal is part of the bill to make comprehensive amendments to the Employees’ Provident Funds and Miscellaneous Provisions Act 1952.
“The tripartite discussion on the bill is over and it would be put up for Cabinet’s approval sometime next week,” a source said.
One of the proposed amendments also authorise Central Government to waive off mandatory PF contributions by workers with certain threshold of monthly income.
The source further revealed that the Employees’ Provident Fund Organisation (EPFO) will be regulatory body for monitoring the implementation of the scheme as there could be cases where worker neither go to EPF nor NPS.
The proposal to provide these options of choosing social security schemes to workers was announced by the Finance Minister Arun Jaitley in his Budget speech for 2015-16.
“With respect to the EPF, the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme (NPS)…for employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer’s contribution,” Jaitley had said in Parliament.
Another amendment in the bill proposed to change the definition of wages, which would include basic pay and all allowances paid to workers. This would increase PF contributions by workers and employers but result in higher saving for employees.
The bill provides “Wages”, meaning all emoluments or remunerations including all allowances payable to an employee in cash.
Under the scheme, the employees contribute 12 per cent of their basic wages towards EPF contribution, with employers pitching in equally.
Out of employers’ contribution 3.67 per cent goes towards EPF, 8.33 per cent towards Employees’ Pension Scheme and 0.5 per cent towards the Employees’ Deposit Linked Insurance Scheme.
In the present scenario, some employers split wages of workers into numerous allowances to reduce their PF liability. The amendment would address this issue.
The employees’ representatives are in favour of the clubbing of wages. However the unionists have reservations against providing option to workers to choose between EPF and NPS, saying that NPS is not a social security scheme rather it is a saving scheme.