EPFO ASSESSES ACTION AFTER KARNATAKA HIGH COURT’S FOREIGN WORKER RULING
Why in the news?
Karnataka High Court deems EPFO’s inclusion of foreign workers in provident fund unconstitutional. EPFO evaluates response strategy.
Judgment Overview:
Karnataka High Court deems inclusion of foreign workers in provident fund and pension scheme as unconstitutional and arbitrary.
Provisions are struck down, questioning the legality of extending these benefits to international workers.
EPFO acknowledges the court’s decision with utmost respect.
Actively assessing the implications of the judgement to determine the appropriate course of action.
source:slideserve
About the Employees’ Provident Fund (EPFO):
Establishment: Came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act of 1952.
Administration: Governed by a tripartite Board known as the Central Board of Trustees, Employees’ Provident Fund.
Schemes Offered:
Employees’ Provident Funds Scheme 1952 (EPF): Provides accumulation plus interest upon retirement and death. Allows partial withdrawals for various purposes.
Employees’ Pension Scheme 1995 (EPS): Offers monthly benefits for superannuation, disability, survivorship, and provides a minimum pension for disablement.
Employees’ Deposit Linked Insurance Scheme 1976 (EDLI): Provides benefits in case of an employee’s death, with a maximum benefit of 6 lakh rupees.
What is a provident fund ?
Definition: A financial scheme for providing retirement benefits to employees.
Establishment: Created by employers and/or employees to save funds over time.
Purpose: Accumulate funds for withdrawal by the employee upon retirement or as per specified conditions.
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source:slideserve
