In a significant development, 27 establishments have voluntarily surrendered their exemption status over the past two years, resulting in the addition of approximately 30,000 employees to the Employees’ Provident Fund Organisation (EPFO).
These establishments have collectively contributed ₹1,688.82 crore to the EPFO fund, reinforcing the organization’s financial stability and commitment to employee welfare.
Background and Context
The Employees’ Provident Fund Organisation manages the provident fund contributions of millions of Indian employees.
While many establishments choose to manage their employees’ provident fund (PF) independently, some opt to let the EPFO handle it directly.
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The recent trend indicates a growing preference for the latter due to improved services and streamlined compliance procedures.
EPFO Key Highlights
- Surrender of Exemption: The 27 establishments voluntarily surrendered their exemption status granted under Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
- Employee Strength: Approximately 30,000 employees are now part of the EPFO system, benefiting from enhanced services and efficient management.
- Financial Impact: The cumulative contribution of these establishments amounts to ₹1,688.82 crore, bolstering the EPFO fund.
- Improved Services: The EPFO has taken several steps to streamline compliance procedures for exempted establishments, ensuring faster claim settlements, higher returns, and ease of engagement for both employers and employees.
EPFO: Why Surrender Exemption?
Establishments that choose to manage their employees’ PF corpus independently need to seek exemption under Section 17 of the EPF Act.
However, the recent trend indicates that more establishments prefer to let the EPFO handle their employees’ PF directly, allowing them to focus on core business activities while benefiting from improved services.
Looking Ahead
As of March 31, 2023, there were 1,002 exempted establishments managing a corpus of ₹3,52,000 crore for 31,20,323 members. The EPFO’s commitment to efficient management and member welfare remains unwavering.
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