Coverage under Employees' Provident Fund Organisation (EPFO)

Coverage under Employees' Provident Fund Organisation (EPFO): Lok Sabha Q&A

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO 154
ANSWERED ON   24.11.2014

COVERAGE UNDER EPFO

154 . Mahadik Shri Dhananjay Bhimrao, Gavit Dr. Heena Vijaykumar
Patil Shri Vijaysinh Mohite, Satav Shri Rajeev Shankarrao, Sule Smt. Supriya Sadanand

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-

(a)whether a large number of workers from the construction sector as well as contract employees are not covered under the Employees` Provident Fund Organisation (EPFO);



(b)if so, the details thereof and the reasons therefor;

(c)whether workers from these sectors were unable to retrieve their savings with EPFO due to frequent job changes; and if so, the quantum of amount lying with EPFO as inoperative;

(d)whether the EPFO has constituted any committee to bring in more workers including workers from these sectors and if so, whether the committee has submitted its reports; and

(e)if so, the action taken thereon along with various other steps taken by the Government for the benefit of workers under EPFO?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

(a) & (b): The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to 187 categories of industries and classes of establishments where 20 or more persons are working. Government has notified a Schedule Head - “Building & Construction Industry” vide GSR No. 1069 dated 11.10.1980.

There is no distinction between regular and contract workers under the Act. The workers whether regular or contractual working in the covered establishments are enrolled as EPF members.

(c): There are instances came to the notice of EPFO where the workers of these sectors face difficulties while retrieving their savings with EPFO due to frequent job changes. As per the unaudited Annual Account of the Organization for the year 2013-14, Rs. 27,448.54 Crore is lying in Inoperative Account.

(d) & (e): The Central Board of Trustees, EPF decided in their 204th meeting held on 26.08.2014 to constitute two non-statutory Sub-Committees, one for Construction Workers and the other for the Contract Workers with the terms of reference that these sub-committees will suggest mechanism to the Central Board so that coverage of both construction and contract workers can be increased. These sub-committees were constituted on 15.10.2014. The sub-committees met separately on 31.10.2014 and made some recommendations which are to be placed before the next meeting of the Central Board for consideration. Besides, EPFO have taken the following steps for benefits of workers:-

i. The process of allotting Universal Account Number has already started which will result in portability of the accounts.

ii. For transfer of accumulations on job/location change, provision for online transfer of accumulations has been put in place.

iii. Provision has been made in the Official website which will help the members to access their PF accounts online.

Source: Lok Sabha

Proposal for Rs 1,000 minimum monthly pension approved: Government

Proposal for Rs 1,000 minimum monthly pension approved: Government

Government has approved minimum monthly pension of Rs 1,000 under Employees Pension Scheme 1995 (EPS-95) run by the retirement body Employees' Provident Fund Organisation (EPFO), Parliament was informed today.


The decision of the government would immediately benefit 28 lakh pensioners including 5 lakh widows getting less than Rs 1000 as pension every month. In all, there are 44 lakh pensioners under the EPS-95 scheme.

"Yes, Government has approved mi"Yes, Government has approved minimum pension of Rs 1000 per month to the pensioners under the EPS-95," Minister of state for Steel, Mines, Labour and Employment Vishnu Deo Sai said in a written reply to Lok Sabha.

According to the Minister, several representations have been received for enhancement of pension under EPS-95 and based on those, "government has approved minimum pension of Rs 1,000 to pensioners under the EPS-95."

Earlier, Labour Minister Narendra Singh Tomar had discussed the proposal with trade unions on June 24 and assured the government will take a decision within two weeks.

As per the proposal, pensioners were to get the benefit with effect from April 1 this year. The government would have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000 for 2014-15.

A senior official said the new government did not want to provide this entitlement merely for one financial year and wanted this to be implemented for all times to come. That is why the proposal was reviewed.

The proposal was already approved by the UPA government for the current financial year but could not be implemented as it was not notified.

However a senior EPFO official, when contacted, said that the body has not yet received any notification or official order in this regard from the Labour Ministry.

According to him, the government could formally announce this entitlement in the forthcoming budget on Thursday.

Besides, the EPFO is also awaiting government's approval for enhancing the wage ceiling for organised sector workers under EPFO ambit to Rs 15,000 per month from the existing Rs 6,500. This was also approved by the previous government but could not be notified due
to coming into force of the model code of conduct during that time.

The decision to increase basic wage ceiling to Rs 15,000 per month is expected to bring in 50 lakh more workers under the EPFO's ambit.

The notification regarding the decision of the EPFO trustees to reduce administrative charges paid by employers to EPFO is also awaited. It was proposed to reduce administrative charges paid by employers to EPFO is also awaited. It was proposed to reduce administrative charges from 1.10 per cent of basic wage to 0.85 per cent.

Source : http://economictimes.indiatimes.com

EPFO may come out with a scheme to provide housing

Besides managing retirement funds, EPFO may come out with a scheme to provide housing...

EPFO may provide housing to subscribers on additional payment of 10 pct

PTI | New Delhi | Updated: Jan 13 2014

Besides managing retirement funds, EPFO may come out with a scheme to provide housing to its over 5 crore subscribers on additional contribution of 10 per cent by them from their basic wages every month.

The idea was mooted by Labour Minister Oscar Fernandes during a function of Employees' Provident Fund Organisation (EPFO) on Sunday.

"EPFO can deduct extra 10 per cent of their basic wages over the mandatory contribution of 12 per cent made by them at present. The money can be used to provide them housing facility," he said.

The minister said most of the workers throughout their working life live in rented accommodation and their entire saving on retirement is spent on purchasing a house.

At present, all workers covered under the EPFO schemes, pay 12 per cent of their basic wages toward PF contribution every month. The basic wages include basic pay and dearness allowance.

Asked about the minister's proposal, EPFO's central Provident Fund Commissioner K K Jalan said: "We will definitely work on the proposal. He (the minister) has a lot experience."

As per another official, EPFO had earlier constructed houses and provided to workers covered under its scheme. However, they did not have to make any additional contribution during the Sahib Singh Verma's tenure as Labour Minister.

EPFO has a corpus of around Rs 5 lakh crore and receives an incremental deposits of over Rs 60,000 crore every year.

An EPFO subscriber said: "The body has the huge financial strength to take up any big housing project and complete it. But one has to see that how many members would come forward to take a cut of 10 per cent cut on their basic wages."

Source: http://www.financialexpress.com
[http://www.financialexpress.com/news/epfo-may-provide-housing-to-subscribers-on-additional-payment-of-10-pct/1218106]

Minimum monthly pension of Rs 1,000 to be a reality this month: EPFO

EPFO: Minimum monthly pension of Rs 1,000 to be a reality this month

Ahead of Lok Sabha polls, the government is likely to approve this month a proposal that will entitle formal sector workers a minimum monthly pension of Rs 1,000, immediately benefiting 27 lakh pensioners.

Those who get less than Rs 1,000 a month include 22 lakh member pensioners and 5 lakh widows as on March 31, 2013. There are about 44 lakh pensioners.

"The Labour Ministry's revised proposal for minimum pension of Rs 1,000 per month was submitted to the Finance Ministry last week, and is likely to be approved this month," said an official source.

The ministry's proposal to assure minimum pension of Rs 1,000 under the Employees' Pension Scheme 1995 (EPS-95), run by the Employees' Provident Fund Organisation (EPFO), is pending for a long time.

Earlier, the ministry had proposed that the government should increase its subsidy on the scheme from 1.16 percent of the basic wages to 1.79 percent to assure the minimum pension amount of Rs 1,000 per month.

However, it did not find favour with the Finance Ministry as this would have resulted in permanent increase in subsidy provided by government.

The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs 1,300 crore additional amount every year for the purpose, and indicated that this amount can reduce over a period of time with more members subscribing to the EPS-95.

Besides, the government is in the process of raising the basic wages ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500.

All those employees getting basic wages - including basic pay and dearness allowance - of more than Rs 6,500 per month, are not covered under the social security schemes run by EPFO.

The Finance Ministry did not agree with the hike in pension subsidy to 1.79 percent of basic wages as the proposed increase in wage ceiling would have resulted in perpetual burden on the exchequer.

EPFO has a corpus of around Rs 5 lakh crore including around Rs 1.7 lakh crore in its pension fund. It has a subscriber base of around 5 crore and all of them are covered under the EPS-95.

The increase in wage ceiling under the scheme run by EPFO is important as it would bring in around 50 lakh more workes and increase the flow mandatory savings.

Source: http://zeenews.india.com
[http://zeenews.india.com/business/personal-finance/analysis-opinion/minimum-monthly-pension-of-rs-1-000-to-be-a-reality-this-month_92634.html]

Duties and responsibilities of Multi Tasking Staff: DoPT Order forwarded by EPFO

Duties and responsibilities of Multi Tasking Staff: DoPT Order forwarded by EPFO

 Employees' Provident Fund Organisation
Ministry of Labour & Employment, Govt. of India

No. HRD/C-1(3)2010/RR/MTS/9440

Dated: 19 August, 2013

Sub:  Duties and responsibilities of Multi Tasking Staff — regarding.

Sir,
DoPT vide its OM No. AB-14017/6/2009-Estt (RR) dated 30.04.2010 has issued the following duties & responsibilities of the M.T.S:-

•     Physical maintenance of records of section.
•     General cleanliness & upkeep of the Section/Unit.
•     Carrying of files & other papers within the building.
•     Photocopying, sending of FAX etc.
•     Other non-clerical work in the Sections/Unit.
•     Assisting in routine office work like diary, dispatch etc. including on computer.
•     Delivering of Dak (inside & outside the building)
•     Watch & ward duties.
•     Opening & closing of rooms.
•     Cleaning of rooms.
•     Dusting of furniture etc.
•     Cleaning of building, fixture etc.
•     Work related to his ITI qualification, if it exists
•     Driving of vehicles, if in possession of valid driving license
•     Upkeep of parks, lawns, potted plants etc.
•     Any other work assigned by superior authority.

The above list of duties is only illustrative and not exhaustive. Deptt. is free to add to the list, duties of similar nature ordinarily performed by officials at this level. All the field offices of the organization may use it and take necessary action in the matter.

{This issues with the approval of ACC(HR)

Yours faithfully,
sd/-
(A. Kumar)
Regional P F Commissioner-II(HRD)

Source: www.epfindia.com
[http://www.epfindia.com/Circulars/Y2013-14/HRD_MTS_Duties_9440.pdf]