Please read the following Suggestions that I have written to PM of India on PF Contributions and problem that low end employees faces during transition of their job Dear Sir, I have been associated with staffing industry for quite some time and have been closely working with Skilled, Semi-skilled & Un-skilled employees. I have a suggestion on the contribution of PF by both employees and employers. I feel that the PF contributions made by skilled, semi-skilled or unskilled employees (Picker / Packer/ delivery boys/ Loader/ guards etc...) are not being utilized by them. This is because the life of their service is very short by nature, since they don’t stick to one job and keep changing if they are paid a little more by the next employer. They don’t bother about their PF contributions and loose the amount while changing their jobs since they don’t claim it. There are more reasons beside that and few of them are listed below: LEP (Low end Positions) since their earning is very minimal and they only care about their daily wage, hence they don’t understand the importance of PF as a social security tools. The PF contribution and withdrawal process is very specific as well as lengthy for each employer and to PF Dept as well. In case the employees leave the job then only after two months can the employee apply for PF withdrawal and after one and half months later, payment comes to their account provided all the documents submitted is correct, if not, then it takes another 90 days to get their money back. The Employee cannot wait to withdraw his PF contribution because their priority is to lead their daily life for their family as they get a very minimal wage ranging from 5000/- to 9000/- per month. If any dismissal happens for the employee, in that case majority of nominees are unable process the PF withdraw since most of them are illiterate and are unable to deal with the complications that are involved like: Death Certificate, Affidavit, Signature verification, etc.. A lot of migratory labour / employees are coming from remote area of village and their spouse does not know withdrawal of PF money. Sir, now think of the importance of money that was accumulated by their hard work of such labours / employees, are unable to utilize their hard earned money when they really need it. Hence, we have one solution for the above concern that we have. If we open PPF account instead of PF account in any nationalized bank close to their home town or as per there convenience and issue passbook to them the employees will get the following benefits: The family will be aware about the PPF account and the whereabouts. The same PPF no will be used for any new job and it will be continued for next 15 years and after that it will be renewed for another 15 years if required (if employees worked for less than 7 days in any company even then their PF contribution will be accumulated in their PPF account and they can see / get updated their account any point in time) As per process they can plan and withdraw 40% of their deposit after completion of 5 years of their contribution and 50% after completion of 7 year and on maturity they can get a good amount of money or they can renew for another 15 year. In case of any dismissal of employee, their spouse can withdraw accumulated money from bank on time that will be a kind of support to their family in future. Contributed amount will be used in market by Bankers. Hassel free operation Revolutionary changes in PF contribution system and confidence building of new government. Measurable step for giving subsidiary to them through this account…If possible. Reduction in PF process cost of Government. PF department may be utilized / linked with other dept. regards / Rakesh Kumar
Posted on: Wed, 24 Dec 2014 09:15:20 +0000