Make EPFO contributions optional
EPFO contributions must be made optional. You cannot force people to lock their hard-earned money for years just to get a meagre 7-8% interest, especially when the portal is a nightmare to use and support is almost non-existent. Social security in India has become a cruel joke. If the government truly cared about people’s savings, it would’ve never introduced the New Tax Regime, which has completely destroyed the saving habits of honest taxpayers. more
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Real problem is transfer of fund from one state to another state which is not guaranteed and processed at the right time. Multiple UAN creation was another problem. Their main job was to provide employment data to govt. which in all probability is inflated. Hope the system has improved since 2018. more
Jun 28
The reason why PF contribution was made mandatory still remain valid. These 'forced' contributions with compounding interest create a good corpus at the time of retirement. In the absence of this, people will spend away these contributions for their day to day need. Instead of abolishing EPO, we need to look to fix the short comings like increasing interest rate, creating transparency in how fund is managed, responsive EPFO members, easy to withdraw money without need to give bribe etc. more
Jun 28
EPFO contributions are optional, at the beginning. Either INR 1,800.00 or 12% of BP or nothing. The issue is once we start, we do not have an option to withdraw in between OR switch between options. NPS too has lock in period. Unless govt guarantee a compensation upon unplanned job loss, something similar to western govts, NPS too is a trap. SIPs are the best. more
Jun 28
nps may be a better alternative since govt cannot give good returns and also bank deposits are falling down.Either govt should allow epf amount to be invested in mutual fund for better returns then it will not be a burden on the govt more
Jun 28
