EPFO Circular: EPFO ​​stopped deduction for GIS, now these employees will get more salary

EPFO discontinues GIS deductions for certain employees:Due to a recent circular of the Employees’ Provident Fund Organization (EPFO), many employees may get an increase in their monthly salary. Not only this, many employees are also going to get a lump sum amount. This is because this circular states that the employees who joined the job after 1 September 2013, whose salary was till now deducted for the Group Insurance Scheme (GIS), will no longer be deducted. Not only this, the money that has been deducted in this head till now will also be returned to these employees.

What is in the EPFO ​​circular?

In the latest circular issued by the Employees Provident Fund Organization (EPFO), it has been said, “The deduction for Group Insurance Scheme (GIS) from the salary of all the employees who joined EPFO ​​after 01.09.2013 is being instructed to stop it with immediate effect. Along with this, whatever deduction has been made in this item till now, that amount will be returned to the employees.” This circular has been issued on 21 June 2024 with the signature of Additional Central PF Commissioner SK Suman. As is clear from this order, not only has the deduction of GIC been stopped immediately, but the money deducted till now is also to be returned to the employees. This means that the employees will now get back the old deducted money together.

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What is EPFO’s Group Insurance Scheme?

EPFO’s Group Insurance Scheme (GIS) is a social welfare scheme run by EPFO ​​under the Ministry of Labor and Employment, Government of India, which provides group insurance facility to members and pensioners as a social security system. Under this scheme, socio-economic security is provided to employees and their dependents in case of any accident.

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Is GIS scheme discontinued?

At present, it cannot be said that the GIS scheme has been discontinued, because the circular dated June 21, 2024 only mentions the discontinuation of salary deduction under the GIS scheme for employees joining after September 1, 2013. Nothing has been said about discontinuing the scheme. The circular also seems to indicate that there has been no change for those who joined the job before September 1, 2013.