Though employees can withdraw up to 100% of the eligible balance in the PF including employee and employer share during their service, a new provision has been made that 25% of the contributions in an account should be maintained as minimum balance at all times. File.
| Photo Credit: Supreet Sapkal

Starting January 1, 2025, a slew of regulatory and financial changes will be coming into effect, affecting citizens across the country. From changes in the Employees’ Provident Fund Organisation (EPFO) procedures to adjustments in LPG pricing and the Unified Payments Interface (UPI), the new year could have a significant impact on your wallet. Here’s a complete list of the changes that you can expect.

EPFO new rule

EPFO is set to streamline the pension withdrawal process from January 1, 2025 as part of the centralised pension payment system (CPPS). Pensioners will now have the convenience of withdrawing their pensions from any bank in the country, eliminating the hassle of additional verification.

Reports suggest that EPFO will be soon issuing an ATM card that will enable subscribers to withdraw money around the clock. Moreover, the EPF contribution cap is expected to be eliminated this year as well.

GST

Multi-factor authentication (MFA) will be made mandatory for taxpayers for better security on the GST portal. Additionally, E-Way Bills (EWBs) can only be generated for base documents not older than 180 days.

UPI and farmer loans

As per a recent circular by the Reserve Bank of India (RBI), starting today, UPI 123Pay, using which feature phone users make online payments, will see an increase in its transaction limit from January 1, 2025. The new limit will be Rs 10,000, up from the previous Rs 5,000.

Additionally, the central bank has raised the cap on unsecured loans for farmers to Rs 2 lakh from Rs 1.60 lakh. This increase, effective today, is intended to provide more financial support to farmers, potentially aiding in better agricultural practices and investments.

Visa requirements

US Visa Appointment Reschedule:

Starting January 1, 2025, non-immigrant visa applicants in India will benefit from a policy allowing one free rescheduling of their visa appointment. However, any further rescheduling will necessitate a new application and payment of the visa fee, aiming to streamline the process while maintaining discipline in appointment scheduling.

Changes in the H-1B Visa Process:

New rules, effective from January 17, 2025, will modernise the H-1B visa process, making it more flexible for employers and accessible for Indian F-1 visa holders.

LPG pricing

Though no official announcement has been made so far, the trend has remained of price change of both domestic (14 kg) and commercial LPG cylinders (19 kg) in the new year. While domestic cylinders’ prices have remained consistent, commercial cylinders have witnessed some volatility. As per experts, there could be a price hike in both.

Employees Providend Fund Organisation building at Bandra. File
| Photo Credit: Supreet Sapkal

Retirement fund body EPFO has registered 13.41 lakh net new members addition in October 2024, according to showed latest payroll data.

This signifies increased employment opportunities and heightened awareness of employee benefits, bolstered by EPFO’s effective outreach initiatives, a labour ministry statement said on Wednesday.

According to the statement, the Employees’ Provident Fund Organisation (EPFO) has released provisional payroll data for October 2024, revealing a net addition of 13.41 lakh members.

As per the data, EPFO enrolled around 7.50 lakh new members in October 2024.

This addition in new memberships can be attributed to growing employment opportunities, increased awareness of employee benefits, and EPFO’s successful outreach programmes, the ministry stated.

A noticeable aspect of the data is the dominance of the 18-25 age group, constituting a significant 58.49 per cent of the total new members added in October 2024.

The net payroll data for the age group 18-25 for October 2024 is 5.43 lakhs.

This is in consonance with the earlier trend, which indicates that most individuals joining the organised workforce are youth, primarily first-time job seekers.

The payroll data highlights that approximately 12.90 lakh members exited and subsequently rejoined EPFO.

This figure depicts year-on-year growth of 16.23 per cent compared to October 2023.

These members switched their jobs and rejoined the establishments covered under the ambit of EPFO and opted to transfer their accumulations instead of applying for final settlement, thus, safeguarding long-term financial well-being and extending their social security protection.

Gender-wise analysis of payroll data unveils that out of the new members added during the month, around 2.09 lakhs are new female members.

This figure exhibits year-on-year growth of 2.12 per cent compared to October 2023.

Also, the net female member addition during the month stood at around 2.79 lakh.

The increase in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce.

State-wise analysis of payroll data denotes that net member addition in the top five states/ UTs constitutes around 61.32 per cent of net member addition, adding a total of around 8.22 lakh net members during the month.

Of all the states, Maharashtra is leading by adding 22.18 per cent of net members during the month.

The states/UTs of Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana, Telangana and Gujarat individually added more than 5 per cent of the total net members during the month.

Month-on-month comparison of industry-wise data displays significant growth in the members working in establishments engaged in the industries — Road motor transport, Electronic media companies in the private sector, and banks other than nationalised banks, among others.

Of the total net membership, around 42.29 per cent addition is from expert services (consisting of manpower suppliers, normal contractors, security services, miscellaneous activities etc).

The payroll data is provisional since data generation is a continuous exercise, as updating employee records is a continuous process.

The previous data gets updated every month. From the month of April 2018, EPFO has been releasing payroll data covering the period from September 2017 onwards.

In monthly payroll data, the count of members joining EPFO for the first time through Aadhaar validated Universal Account Number (UAN), existing members exiting from coverage of EPFO and those who exited but rejoined as members, is taken to arrive at net monthly payroll.

EPFO building. File photo
| Photo Credit: Niranjan R. Varma

Retirement fund body Employees Provident Fund Organisation (EPFO) recorded a net addition of 19.94 lakh members in July this year, the Labour Ministry said on Monday (September 23, 2024).

Union Labour Minister Mansukh Mandaviya said in a press conference that 10.52 lakh new or first-time workers subscribed to Social Security schemes run by the EPFO.

The minister said almost 20 lakh net new members addition (19.94 lakh) were recorded in July this year. He also informed that 8.77 lakh members added in July are in the age group of 18-25 years.

Nearly 6.25 lakh members of ages between 18 and 25 are first-time workers or new joiners, according to the latest data. About 59.4% of new joiners fall within the 18-25 age bracket. He said that the data shows the employment of young people has increased.

He also informed that 4.41 lakh female members were added by EPFO in July which includes 3.05 lakh new joinees. The minister pointed out that female employment has also increased.

New Delhi:

The Employees’ Provident Fund Organisation (EPFO) has reported its highest-ever monthly payroll addition in July 2024, with 19.94 lakh members joining the ranks.

This highlights a shift in India’s employment landscape, reflecting the effectiveness of the Modi Government’s transformative schemes aimed at driving job creation and formalising the job market.

The EPFO data indicates that of the new additions, 10.52 lakh are first-time employees, marking a 2.66 per cent increase over June 2024 and a 2.43 per cent rise compared to July 2023.

This uptick in employment showcases an expanding job market and increased opportunities, particularly for youth and women.

India’s massive push toward economic growth and job creation has been bolstered by key government initiatives like the Production Linked Incentive (PLI) Scheme, the Startup India movement, the Employment Linked Incentive Scheme, and significant capital expenditure (Capex) drives.

Year-wise net payroll additions further underscore the progress being made: in 2022-23, there were 138.52 lakh net additions, while in 2023-24, this number was 131.48 lakh.

Youth employment is leading the surge in formal job creation, with 8.77 lakh young individuals contributing to the net payroll in July 2024 alone.

Among these, 6.25 lakh were first-time employees, accounting for 59.41 per cent of total new joinees in the month. This growth can be attributed to initiatives like the National Career Service (NCS), which currently hosts over 20 lakh active vacancies and has registered 33.72 lakh companies, indicating robust hiring across various sectors.

A key highlight of July 2024 is the rise in female workforce participation. The data shows that 4.41 lakh women joined the formal sector in July, with 3.05 lakh being new joinees.

The net female workforce grew by 14.41 per cent, while the number of new female members increased by 10.94 per cent. This substantial rise in female employment reflects the government’s focus on improving access to education, skill development programs, and support services like working women hostels.

Industry-wise, the top sectors driving the highest net payroll additions in July 2024 include manufacturing, marketing services, the usage of computers, and building and construction.

These industries collectively accounted for over 2 lakh new members, while other sectors such as expert services, electronic media companies, and banks also contributed to the rising employment numbers.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Watch: Budget 2024 | What is in store for labour?

In her seventh budget speech, Finance Minister Nirmala Sitharaman announced three new employee-linked incentive schemes in the Union Budget for 2024-25. The three schemes, which are part of the Prime Minister’s package, will align with enrolment in the Employee Provident Fund Organisation and focus on the recognition of first-time employees, as well as support to both employers and employees.

The schemes will facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with a central outlay of ₹ 2 lakh crore. The Centre will provide ‘Employment Linked Incentives’ to employers based on enrolment in the Employees Provident Fund Organisation. One of the major proposal among this is to provide internship opportunities in 500 top companies to one crore youth for 12 months.

Students will get an internship allowance of ₹ 5,000 per month along with a one-time assistance of ₹ 6,000. Companies will have to bear the training cost and 10 per cent of the internship cost from their CSR funds. Many have interpreted this as the next Agniveer scheme given the casual nature of this scheme. Trade unions also seem to be not happy with the budget as their long pending demand of restoration of Old Pension Scheme is ignored this time too.

The EPFO fixed a three-year high interest rate of 8.25% on employees’ provident fund for 2023-24 on February 10.

The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) has recommended an interest rate of 8.25% on provident fund (PF) deposits for 2023-24. The current interest rate is 8.15%.

“The move is a step towards fulfilling PM Modi’s guarantee of strengthening social security for India’s workforce,” said Union Labour Minister Bhupender Yadav after a meeting of the CBT here on Saturday. The meeting also authorised Mr. Yadav to constitute the new executive committee of the CBT.

Also read: The woes of pensioners and PF members 

The CBT has recommended to the Union Finance Ministry that the new interest of 8.25% could be applied to the accumulations in subscribers’ accounts for 2023-24. Once the Finance Ministry accepts the approval, the new rate will be officially notified in the government gazette. “Subsequently, the EPFO will credit the approved rate of interest to its subscribers’ accounts,” the Union Labour Ministry said in a press release.

“The CBT has recommended a distribution of historic income amount of ₹1,07,000 crore to EPF members’ accounts on a total principal amount of about ₹13 lakh crore, which were ₹91,151.66 crore and ₹ 11.02 lakh crore respectively in 2022-23. The total income recommended for distribution is the highest on record,” the Centre said, adding that the income had grown by more than 17.39% and principal amount had increased by 17.97%, which is a healthy financial performance.

The issue of non-inclusion of representatives of the INTUC and the AITUC in the CBT were also taken up during the meeting.

“The EPFO’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25% rate of interest on EPF for 2023-24 at its meeting on Saturday,” a source said.

The 8.5% interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.

ESIC cover for retirees

A meeting of the Employees’ State Insurance Corporation (ESIC) was also held on Saturday. The meeting decided to extend the ESIC’s medical benefits to superannuated insured persons with relaxed norms. Superannuating workers, who were insured under the ESIC but who went out of the scheme coverage in view of exceeding the wage ceiling, will get the benefit if the worker was under insurable employment for at least five years before superannuation or voluntary retirement. “The persons who were in the insurable employment for at least five years after April 1, 2012, and superannuated/voluntarily retired on or after April 1, 2017 with wages up to ₹30,000 per month will be benefited under the new scheme,” the Ministry said.

The meeting also relaxed existing norms for establishment of dispensaries, medical infrastructure, Regional-Sub Regional offices in north-eastern States, including Sikkim. It also approved a new policy on AYUSH 2023 in ESIC institutions. “The policy details the establishing of panchkarma, Kshara Sutra and AYUSH units in ESIC hospitals,” it said. The ESIC will also acquire land for construction of 100-bed hospitals at Udupi in Karnataka, Idukki in Kerala, and for a 150-bed hospital at Malerkotla in Punjab.

New Delhi:

 The economy has added around 5.2 crore new formal jobs between FY20 and FY23, with the net addition being 2.7 crore, according to a report based on an analysis of the EPFO, NPS and ESIC data.

The government has since April 2018 releasing monthly payroll data from the Employees Provident Fund Organisation or EPFO, the National Pension Scheme or NPS and the Employees State Insurance Corporation or the ESIC, based on the recommendations given by Ghosh & Ghosh report.

The EPFO payroll data trends for the past four years show that net new EPF subscriber addition during FY20-23 was 4.86 crore, which consists of new payroll (first payroll), second payroll (rejoined/resubscribed members) and formalised payrolls. Accordingly, the net new payroll (first job/fresh job) adjusted for re-joined/re-subscribed members and formalisation (based on ECR data), shows that the actual net new payroll was 2.27 crore during FY20-23, SBI Research said in a report Tuesday.

Of this, the first jobs were 47 per cent of the total net new payroll addition and the second jobs (the exited members who re-joined and re-subscribed) stood at 2.17 crore during these four years. This means that the net increase in formalisation was at 42 lakh in these years, said the report penned by group chief economic advisor to the SBI Soumyakanti Ghosh.

If the Q1 EPFO payroll data of FY24 looked at the trend, it is encouraging as 44 lakh net new EPF subscribers joined, of which the first payroll was 19.2 lakh. If the trend continues for the rest of FY24, then the net new payroll will cross the 160 lakh mark, which will be the highest ever with the first payroll in the range of 70-80 lakh.

NPS data indicate that 8.24 lakh new subscribers in FY23, of which state government payrolls stood at 4.64 lakh, followed by non-government jobs of 2.30 lakh and 1.29 in the central government.

During the past four years, around 31 lakh new subscribers joined the NPS. That means, cumulatively, total payroll generation of the EPFO and NPS was more than 5.2 crore during FY20-23, Ghosh said.

The report also notes a significant decline in revision of the number of members who have rejoined or resubscribed in the first quarter of the current financial year. This would mean more people may be deciding to stick to their current employment. Additionally, the share of women’s payroll was around 27 per cent.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)