look news india
Changes in EPFO rules: There is good news for the employed people. The Employees' Provident Fund Organization (EPFO) has changed the Group Life Insurance (GIS) rules for employees employed after 1 September 2013. This change in the Provident Fund rules is going to increase the take home salary of the employees. This decision will benefit those employees who have joined after 1 September 2013.
Rules changed, salary will increase
The Employees' Provident Fund Organisation (EPFO) has decided to stop deductions under Group Life Insurance (GIS) for government employees with immediate effect. The EPFO has issued a circular in this regard. In which it has been asked to stop deductions under the Group Insurance Scheme from the salary of all employees. On the termination of this scheme, any amount deducted from the salary of employees who are no longer a part of GIS will be refunded in a lump sum. Their internal salary may increase if GIS is not deducted from their salary.
What is a GIS plan?
The take home salary of the employees excluded from the scheme will increase, but it is not yet clear by how much the salary will increase. Let us tell you that every month a small percentage of the salary of the employees is sent to GIS, which becomes a large amount at the time of retirement. The Group Insurance Scheme (GIS) of EPFO was started on 1 January 1982 to provide socio-economic security to the employees and their families under the Employees' Provident Fund Organization (EPFO). Under this scheme, financial assistance is provided to the family of an employee in case of his death.