The Employee Provident Fund Scheme (EPFS) had been documented as a social security scheme for Indian industry and has developed a huge amount through its 42 million contributors. At a relatively risk-free rate of almost 8.75% return, EPFS is advocated as a good retirement merchandise in the debt portfolio.
The government's interest in boosting a defined contribution approach to retirement benefits appears to work at cross purposes with the interest of the low-income employees. With recent regulatory changes in the minimum contribution amount, the effect on bottom of the pyramid workers covered by this scheme further reduces their net income. The case discusses the impact of developments in the regulatory scheme on all employees, but more particularly on the fiscal impact for organizations, the lesser income workforce. It debates with the efficacy of the current social security scheme in India and the choices for organizations to design and manage variable damages arrangements adapted to individual and life-stage needs.c
PUBLICATION DATE: January 18, 2016 PRODUCT #: IMB545-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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