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Faced with high defaults in provident fund contributions by employers, the Employees Provident Fund Organisation , or EPFO, has decided to give monthly updates of contributions instead of an annual statement.  The EPFO expects this will bring instances of defaults by employers to the notice of workers, who, in turn, will put pressure to demand their dues.

The EPFO, which manages retirement savings of more that 5 crore workers, has been computerising its offices across the country and will be in a position to provide monthly information from the next fiscal.  At present, subscribers only get a small slip at the end of the fiscal with just the opening and closing balance and have no idea about how the amount has grown through the year.

The default amount identified by the EPFO through periodic inspection of random establishments in 2009-10 was about 166.12 crore. The EPFO expects more complaints about defaulting employers once the monthly statements are made available to employees.

Defaults have been highest for establishments in Tamil Nadu followed by Andhra Pradesh, Bihar, Karnataka and Kerala.

Both employers and employees are mandated to contribute 12% of basic pay to the fund every month. The entire contribution to the fund is usually made by employers who deduct the employees share from their pay and add it their own contribution.

About 20,000 crore to 30,000 crore is added to the corpus every year.

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0 Comments

  1. VIRENDER SINGH GUSAIN says:

    Dear EPFO, have you checked the system of Kingfisher Airlines and their sisters concern. They donot deposit neither employee contribution or employer contribution. Has EPFO taken any action against them till date.

    Regards
    virender

  2. ANIRUDHA MADHAVA BHAT says:

    It is a matter of terrible experience to get the Annual Statement of Provident Fund from Regional Provident Fund Commissioners’ Offices, who have not sent the statements for last 5 years. The standard reply from RPFC’S OFFICE is that the upgradation of system is going on and after one month, you can get online information. It is more than two months that I am getting the reply.

    One does not get statements even after 5 years, updation is not available and withdrawal has a premium of 10% the amount standing to the credit before getting the remittance, otherwise, you will not hear anything.

  3. RB says:

    EPFO should also find ways to update members on the status of their PF transfer, PF withdrawal and PF loan applications. Getting to know status of these, as of now is a horrendous experience.

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