Employees' Provident Fund Organisation, India



The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’ Provident Funds Act, 1952. It is now referred as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of India except Jammu and Kashmir. The Employees' Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. Since its enactment in 1952, the Act has been amended 15 times.


The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of :-

    
  1. Government (Both Central and State) - 15 representatives
  2. Employers, - 10 representatives
  3. Employees - 10 representatives

The Board administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India. It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 123 locations across the country. The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India (click here). The Organization also has a well equipped training set up where officers and employees of the Organization as well as Representatives of the Employers and Employees attend sessions for trainings and seminars.

The Board operates three schemes viz. :-


  1. The Employees' Provident Funds Scheme 1952 (EPF)
  2. The Employees' Pension Scheme 1995 (EPS)
  3. The Employees' Deposit Linked Insurance Scheme 1976 (EDLI)

The benefits admissible under each of the three schemes and the financing of the three schemes is indicated in the table below : –


 
Employees’ Provident Fund Scheme, 1952
Employees' Pension Scheme, 1995
Employees’ Deposit Linked Insurance Scheme, 1976
Benefits:

Accumulation plus interest upon retirement, resignation , death.

Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.

Monthly benefits for superannuation/ retirement, disability, survivor, widow (er), children.

Amount of pension based on average salary during the preceding 12 months from the date of exit and total years of employment.

Minimum pension on disablement.

Past service benefit to participants of erstwhile Family Pension Scheme, 1971.

The benefit provided in case of death of an employee who was member of the scheme at the time of the death,

The family will get 20 times of the average wages of the last 12 months of the member.

According to the revised scheme, maximum benefits under the scheme will now be ₹ 1,30,000/- , as the wage ceiling upto which contribution can be paid under the scheme is ₹ 6500/-.

Declaration:

Any person joining an establishment, to which the EPF & MP Act applies, shall compulsorily submit a declaration to his/her employer, whether he/she is already a member of Provident Fund (Form 11). This will ensure continuity of service and consequential benefits.

In case he/she was a member he/she shall also apply in Form 13 for getting the old account details and the fund balance to the new account.

Nomination:

There is a common Form for all the three Schemes. Form 2 (R) The nominations in case of EPF Scheme are also applicable for the EDLI Scheme.

Member having family can nominate any one or more of the family members as defined under the Para 2 (f) of the EPF Scheme, 1952.

Member not having any family member as defined in the said Para can nominate any other person, but the nomination will become invalid in case of the member acquiring family.

Member has to give the names of Spouse and all children in the prescribed Form.

In case the member has no family, one person can be nominated.

However, such nomination will become invalid once the member acquires a family.

The nomination under the EPF Scheme will be applicable for the EDLI Scheme also.

Claim Forms:

For final settlement by member: Form 19

For Transfer of old account to the new one: Form 13

For Withdrawal in certain cases: Form 31

For financing LIC Policy: Form 14

For final settlement in favour of nominee/ beneficiary of a deceased member: Form 20

For Monthly Pension: Form 10D

For Withdrawal Benefit and Scheme Certificate: Form 10C

For claiming Insurance Benefit by a nominee/ beneficiary in case of member’s death while in service: Form 5IF

NOTEWORTHY FEATURES

 

A member can view online the status of his Claim submitted to PF Office (Click Here).

An employee working for an establishment can check whether the establishment in which he/she is working is covered under the EPF & MP ACT 1952 (Click Here).

He/she can also check whether his/her PF deductions are deposited by the employer. This information is available from financial year 2009-10 onwards. Facility is now available for online transfer of member accounts in the event of change of job / location through On-line Transfer of Claims Portal (OTCP).

 

The pensioners’ portal has also been launched on EPFO website where the pensioner on providing his/her PPO number and date of birth can view details of pensions disbursed to him/her.  The pensioner’s details of pension are available from the financial year 2010 onwards.

 

A member can register himself/herself on the Member Portal and view and download his/her e-passbook having transaction wise details in PF Account. Bulk SMS and email service for informing members regarding credits and debits of their provident fund accounts and for providing other information to them is now operational.

 

From the Financial Year 2012-13 EPFO had launched a facility of Electronic Challan cum Return (ECR). ECR is an on-line portal where establishments upload statutory returns.

 

The establishments can now remit EPF dues electronically even if they do not have their accounts with the SBI.  This facility is currently available to establishment having accounts in any one of the 58 banks through which the payments can now be made electronically.

 

On 16.10.2014, the Hon’ble Prime Minister of India formally launched the Universal Account Number (UAN) for facilitating portability of member account.  UAN has been allotted to all the current contributing members, which stood at 4.19 crores as on 21.11.2014.  These UANs has been disseminated to the respective employers through OTCP portal.  All the new members joining the funds in the first time are also allotted Universal Account Number.  The employer can log on to the OTCP portal to collect the UAN allotted to the employees and distribute the same to the person concerned.   KYC seeding of these UANs are currently under ways.  EPFO has made it mandatory to all the establishments to provide bank account numbers of all the members joining the funds.  EPFO is  also collecting Aadhaar and PAN as part of KYC details as this will enable EPFO in future to provide services directly to the members without the intermediation of the employers.

 

The establishments can now register on-line for getting a EPF registration number (EPF Code number) the On-line Registration of Establishments portal (OLRE).The establishments get the registration number immediately on successful submission of on-line application.

 

The Hon’ble Prime Minister also inaugurated the Shram Sewa Portal on 16.10.2014.  The Shram Sewa Portal intends to make the process of inspection of establishments rule based, periodic and by minimizing the use of discretion of inspecting officers. 

 


As on date, the Act extends to 187 classes of establishments. Any establishment falling in any of the 187 categories mentioned above and employing more than 19 persons automatically comes under the purview of the EPF & MP Act 1952.

On coming under the purview of the Act the employers are required to submit Particulars of Ownership [Form 5A], and comply with the relevant statutory provisions.

The contribution rates (% of wages) for financing and administering the benefits under the EPF & MP Act are given below:-

 

 
CONTRIBUTION ACCOUNTS
ADMINISTRATION ACCOUNTS
TOTAL
EPF
EPS
EDLI
EPF
EDLI
EMPLOYEE
12
0
0
0
0
12
EMPLOYER
3.67
8.33
0.5
1.10
0.01
13.61
TOTAL
15.67
8.33
0.5
1.10
0.01
25.61

Thus employers and employees both contribute @ 12% of wages in Contribution accounts. Further, the employers also contribute towards administration of the benefits under the Act.

The rate of contribution for certain category of establishments is 10%. These are :-

 

  • Any establishment in which less than 20 employees are employed.

  • Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction

  • Any establishment which has at the end of any financial year has accumulated losses equal to or exceeding its entire net worth, and

  • Any establishment in following industries :- Jute, Beedi, Brick, Coir and Guar gum Factories.

The contributions are statutorily payable upto a prescribed wage ceiling, which is ₹ 15000/- as on date.
The contributions are invested as per the prescribed Pattern of Investment.
The Members’ Provident Fund Balances earn interest as per the rate of interest declared annually by the Government of India, which is 8.75% at present.

 

 

 

PERFORMANCE STATISTICS (2013-14)

 

During the year the achievements of the Employees' Provident Fund Organisation in the functional areas of Service, Financial and Compliance are as under :-

 

SERVICE AREA :

 

  • 52,782 additional establishments were given PF codes during the year taking the commulative total to 7.96 lac on 31st March, 2014.

  • 3.45 lac establishmetns remitted dues in respect of 3.26 crore members.

  • 2.90 lac new pensioners were added taking the cumulative total number of pensioners paid monthly pension to 46.91 lac on 31st March, 2014.

 

FINANCIAL AREA :

 

  • Contribution received during the year was ₹ 94,762.09 cr.

  • Benefits paid during the year amounting to ₹ 43,519.88 cr.

  • During the year 123.36 lac claims were settled.

 

COMPLIANCE AREA :

 

  • 56,317 Enquiries were concluded :- 18,062 under Section 7A of the Act and 38,255 under Section 14B of the Act.

  • 67,236 Enquiries were Pending as on 31.03.2014 :- 17,138 under Section 7A of the Act and 50,098 under Section 14B of the Act.

  • ₹ 2240.29 cr. assessed as amount due from defaulting establishments.

 

  • ₹ 1722.30 cr. recovered from defaulting establishments.

  • ₹ 3929.35 cr. remained outstanding to be recovered from unexempted establishments. (₹ 1651.36 cr. being Penal Damages and Interest).

  • ₹ 550.41 cr. remained pending for recovery from exempted establishment.

 

  • Total amount of ₹ 4479.76 cr. is pending for recovery as on 31st March, 2014.

  • ₹ 1959 cr. (74.60%) arrears remained unrecoverable due to court's stay orders (Unexempted Sector).

  • ₹ 335 cr. (12.78%) still unrecoverable due to liquidation proceedings and ₹ 98.03 cr. (3.73%) is unrecoverable due to BIFR proceedings (unexempted sector), ₹ 72.02 cr. (2.74%) is locked up due to grant of Installment Facility.

 

 

SUMMARY OF STATISTICAL ABSTRACT (2013-14)

 

 

A.         SERVICE AREA – CALIMS (lacs)

 

 

 

2013-14

2012-13

2011-12

 

PROVIDENT FUND CLAIMS

FINAL SETTLEMENT

NET WORKLOAD

58.86

52.37

44.44

CLAIMS SETTLED

57.90

51.20

42.12

CLAIMS PENDING

0.97

1.17

2.32

PARTIAL WITHDRAWAL

NET WORKLOAD

3.89

3.19

2.71

CLAIMS SETTLED

3.84

3.13

2.60

CLAIMS PENDING

0.06

0.06

0.11

TRANSFER CASES

NET WORKLOAD

7.28

8.70

6.32

CLAIMS SETTLED

7.08

8.46

5.60

CLAIMS PENDING

0.20

0.24

0.73

TOTAL

NET WORKLOAD

70.03

64.26

53.47

CLAIMS SETTLED

68.82

62.79

50.32

CLAIMS PENDING

1.21

1.47

3.16

PENSION CLAIMS

MONTHLY PENSION

NET WORKLOAD

4.04

3.96

4.01

CLAIMS SETTLED

3.88

3.76

3.62

CLAIMS PENDING

0.16

0.20

0.39

OTHER THAN MONTHLY PENSION

NET WORKLOAD

51.32

45.67

38.64

CLAIMS SETTLED

50.38

44.61

36.35

CLAIMS PENDING

0.94

1.06

2.29

TOTAL

NET WORKLOAD

55.36

49.63

42.65

CLAIMS SETTLED

54.26

48.37

39.97

CLAIMS PENDING

1.10

1.26

2.68

INSURANCE CLAIMS

NET WORKLOAD

0.29

0.27

0.21

CLAIMS SETTLED

0.28

0.26

0.02

CLAIMS PENDING

0.01

0.01

0.02

GRAND TOTAL

NET WORKLOAD

125.68

114.16

96.36

CLAIMS SETTLED

123.36

111.42

90.50

CLAIMS PENDING

2.32

2.74

5.86

 

ANNUAL STATEMENT OF ACCOUNTS (in lac)

 

YEAR

UPDATED DURING THE YEAR

PENDING AT THE END OF YEAR

2013-14

1356.98

75.56

2012-13

1290.91

28.30

2011-12

1662.01

38.81

 

DISPOSAL OF PUBLIC GRIEVANCES

 

PARTICULARS 

2013-14

2012-13

2011-12

Opening Balance

27,853

28,752

18,880

Received during the year

1,71,224

2,48,072

2,56,096

Total Grievances

1,99,077

2,76,824

2,74,976

Disposed off during the year

    1,94,490

2,48,971

2,46,224

Balance at the end of year 

4,587

27,853

28,752

Percentage of disposal 

97.69

89.94

89.54

 

ENROLMENTS

 

ENROLMENTS (CUMULATIVE)

YEAR ON YEAR GROWTH (%)

 YEAR

ESTABLISHMENTS

MEMBERS (lac)

ESTABLISHMENTS

MEMBERS  (lac)

2013-14

7,95,827

1,178.13

7.10

32.73

2012-13

7,43,045

887.62

7.49

3.77

2011-12

6,91,237

855.40

4.64

38.88

 

 

B. REVENUE STATEMENTS

 

CONTRIBUTION COLLECTED (During the year)

 

SCHEME

2013-14

2012-13

2011-12

 (₹  in cr.)

Provident Fund

Exempted

23523.08

14,458.41

16,123.50

Unexempted

52,179.50

45,798.39

39,431.44

Total

75,702.58

60,256.80

55,554.94

Pension Fund

Employee’s / Employer’s Share

16,417.74

14,724.01

13,417.47

Government’s Share

1,943.99

1,400.00

1,350.00

Total

18,361.73

16,124.01

14,767.47

Insurance Fund

 

 

 

Employer’s share

697.78

620.13

566.40

Total

697.78

620.13

566.40

Grand Total

94,762.09

77,000.94

70,888.81

 

 

SCHEME

2013-14

2012-13

2011-12

PAYMENTS MADE      (During the year)                                                     (₹  in cr.)

Provident Fund (Un-exempted only)

32,466.91

25,956.38

30,328.00

Pension Fund

10,900.34

9,038.52

7,858.85

Insurance Fund

152.63

123.88

93.66

Total

43,519.88

35,118.78

38,280.51

 

ADMINISTRATION ACCOUNT (EPF SCHEME) (₹ in cr.)

 

YEAR

INCOME

EXPENDITURE

BALANCE

2013-14

4,062.05

1,655.55

2,406.50

2012-13

3,508.92

1,477.14

2,031.78

2011-12

3,081.50

1,298.84

1,782.66

 

 

INVESTMENTS (YEAR-WISE)           
                                                                                                                        (₹ in cr.)

YEAR

PROVIDENT FUND

PENSION FUND

INSURANCE FUND

GRAND TOTAL

GROWTH (%)

2013-14

*81,021.26
(33,966)

24,280.24

1,620.16

1,06,921.66

24.22

2012-13

*63,018.76
(22,693)

21,625.28

1,433.25

86,077.29

7.99

2011-12

*58,662.28
(22,403)

19,729.26

1,319.93

79,711.47

21.06

Note: Figures in brackets pertain to exempt establishment.

* (Investments during the year includes receipts, net of payment and interest and maturity proceeds)

 

 

INVESTMENTS (CORPUS)                                                                           ( in cr.)

YEAR

PROVIDENT FUND

PENSION FUND

INSURANCE FUND

GRAND TOTAL

GROWTH (%)

2013-14

517,684.65
(1,92,980)

2,07,685.60

13,711.00

7,39,081.25

16.91

2012-13

4,36,662.90
(1,59,014)

1,83,405.36

12,090.84

6,32,159.10

15.76

2011-12

3,73,644.57
(1,36,321)

1,61,780.08

10,657.59

5,46,082.24

17.09

Note: Figures in brackets pertain to exempt establishment.

 

C. COMPLIANCE ACTION

 

ASSESSMENTS DURING THE YEAR

PARTICU-LARS

2013-14

2012-13

2011-12

UNDER SECTION 7A

UNDER SECTION 14B

Total

UNDER SECTION
      7A

UNDER SECTION
14B

Total

UNDER SECTION
     7A

UNDER SECTION 14B

Total

Workload

35200

88353

123553

35879

44770

80649

40914

39139

80053

Disposed

18062

38255

56317

18732

35402

54134

22661

32583

55244

Pending

17138

50098

67236

17147

9368

26515

18253

6556

24809

 

 

2. ARREARS TO BE RECOVERED

(₹ in cr.)

 

 TYPE OF DUES

2013-14

2012-13

2011-12

Workload

Realised

Closing Balance

Workload

Realised

Closing Balance

Workload

Realised

Closing Balance

a.

Provident Fund

3423.50

1101.41

2322.09

2,897.07

790.60

2,106.47

2,787.31

1,064.30

1,723.01

b.

EPF Admn. & Inspection Charges

269.39

76.24

193.15

222.96

57.38

165.58

213.26

69.66

143.60

c.

Pension Fund

1798.80

501.26

1297.54

1,557.73

382.42

1,175.31

1,444.78

415.46

1,029.32

d.

Insurance Fund

154.82

42.41

112.41

137.38

30.11

107.27

111.81

35.01

76.80

e.

EDLI Admn. & Inspection Charges

5.15

0.99

4.16

7.28

2.89

4.39

6.46

1.15

5.31

f.

TOTAL ( a to e)

5651.66

1722.31

3929.35

4,822.42

1,263.40

3,559.02

4,563.62

1,585.58

2,978.04

g.

Penal Damages and Interest

2111.68

460.32

1651.36

1,707.26

298.93

1,408.33

1,626.64

299.63

1,327.01

h.

  Exempted Sector

617.60

67.19

550.41

712.49

178.03

534.46

737.62

132.57

605.05

GRAND TOTAL (f & h )

6269.26

1789.50

4479.76

5,534.91

1,441.43

4,093.48

5,301.24

1,718.15

3,583.09

 

 

MANPOWER

 

 

2013-14

2012-13

2011-12

GROUP A

SANCTIONED

1132

1057

1042

IN-POSITION

883

732

762

SHORTFALL

249

325

280

GROUP B

SANCTIONED

6361

9032

6368

IN-POSITION

4670

7027

5086

SHORTFALL

1691

2005

1282

GROUP C (including erstwhile Group D)

SANCTIONED

17166

14649

17681

IN-POSITION

13348

11209

13980

SHORTFALL

3818

3440

3701

TOTAL

SANCTIONED

24659

24738

25091

IN-POSITION

18901

18968

19828

SHORTFALL

5758

5770

5263

 

E.  INFRASTRUCTURE

OFFICES

 

2013-14

2012-13

2011-12

ZONAL OFFICES

10

10

10

REGIONAL OFFICES

40

40

40

SUB-REGIONAL OFFICES

82

83*

83*

SERVICE CENTRES

8

14

14

DISTRICT OFFICES

113

123**

122**

NATRSS/ZTI/SUB-ZTIs

6

6

6

* Non operational offices delete.

** Merger with the SRO / RO.