Recovery of Provident Fund under EPF Scheme, 1952 – Reg

KENDRIYA VIDYALAYA SANGATHAN

18- INSTITUTIONAL AREA, SHAHEED JEET SINGH MARG,

New Delhi – 110016

Email ID:- kvsjcfin@gmail.com

Telephone No: 011-26858570 ext-(205)

F.No.1-1/2015/KVS/JC(Fin)

Dated: 16/06/2016

The Deputy Commissioner /Director,

Kendriya Vidyalaya Sangathan,

All Regional Offices/ ZIETs.

Sir/Madam,

Sub: Recovery of Provident Fund under EPF Scheme, 1952 – Reg.

With reference to the captioned subject, I am to forward herewith a copy of DO. Letter no.CAIU/011(33)2015/HQ dated 6th June 2016 which is self – explanatory.

The salient features highlighted by Sri. C.Chakraborty, Addl. Central Fund Commissioner-II, EPFO, New Delhi in his letter is reproduced hereunder:

1. The issue of coverage of contract workers under the EPF & MP Act, 1952 has been flagged as an area of top most concern by the Government of India.

2. Contractors claim huge amount towards EPF of contract workers from the Principal Employer (KVS) but either do not deposit it at all or deposit it partly, thus depriving these workers of Provident Fund, Pension and Insurance benefits.

3. As per Paragraph 30(3) of EPF Scheme, 1952, it is the responsibility of the principal employer to pay both the contributions payable by him in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor.

4. In their website www.epfindia.gov.in on the “establishment search option”, a provision is available to verify as to whether the agencies and contractors having Provident Fund Code numbers are regularly depositing Provident Fund contributions every month to check the compliance position of the agencies and contractors to the provisions of the Act and the Schemes framed there under to which the contracts are awarded by the department.

5. To bridge the gaps and with the view to make the system more robust, transparent and to reduce the cost of compliance for the employer, EPFO has launched a facility for the principal employers to register at the EPFO website the details of contract employers of each contract awarded, which can be viewed and updated at any time.

6. The Regional and Sub-Regional office will also take steps to secure compliance of employees engaged by the contactor towards Employees Provident Fund.

7. A representative can be deputed to contact the concerned Regional PF Commissioner of the Regional/Sub-Regional Office to know further methodology.

8. The details of the contract employers of each contract should be uploaded to facilitate compliance under EPF and MP Act, 1952.

It is requested that the contents of DO letter dated 6th June 2016 may be brought to the notice of all the Principals under your region and may also be noted at your end for compliance in letter and spirit.

Yours faithfully,

Sd/-

(M. Arumugam)

Joint Commissioner (Fin)

Source:http://kvsangathan.nic.in/GeneralDocuments/ann-17-06-16.pdf

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New EPF Rules to Come into Force after April 30

New EPF Rules to Come into Force after April 30

On Feb 10, 2016, the ministry of labour and employment made sweeping changes in the EPF rules restricting the withdrawal of EPF corpus. EPFO rules restricting withdrawal of employees’ provident fund will come into force after April 30.

New EPF Rules to Come into Force after April 30 – The government has deferred the implementation of the new rule till April 30, 2016.

EPFO rules restricting withdrawal of employees’ provident fund will come into force after April 30. This means that in case you are unemployed for 2 months or more and want to withdraw your full EPF you can do so only within the next 15 days. After that the withdrawal amount will be restricted and you will be able to get the full amount only when you turn 58.

On Feb 10, 2016, the ministry of labour and employment made sweeping changes in the EPF rules restricting the withdrawal of EPF corpus.

Hitherto, a member of EPFO could withdraw 100% of the accumulated corpus if unemployed for a period of 2 months or more. The accumulated corpus is a sum of employer’s contribution, employee’s contribution and the interest earned on them. Of course, the person needs to have accumulated some EPF in a previous employment to have a corpus to withdraw at all.

However, the new EPF rules have restricted the amount of withdrawal that a member can make. Under the new rule, a member after being unemployed for 2 months or more can withdraw only his own contribution and the interest earned on it. He can’t withdraw the corpus generated from the employer’s contribution along with the interest earned on it. A member in the Employees Provident Fund Organisation (EPFO) can withdraw the full Employee Provident Fund (EPF) corpus only after attaining the age of 58 years. So, if you are jobless for 2 months or more and wish to withdraw the full EPF corpus, you just have 15 days to get it out.

The government has deferred the implementation of the new rule till April 30, 2016. From May 1, till 58 years of age you can withdraw only your own contribution in EPF which equals 12% of your basic salary plus the interest if unemployed for 2 months or more. The employer’s contribution plus the interest accumulated will be withdrawable only once you attain the age of 58 years.

We consider a hypothetical scenario wherein a person after being employed for 20 years becomes jobless in the month of Jan, 2016. Assuming his basic salary as Rs 25000 per month for the whole period his own contribution in EPF would be Rs 3000 per month. If he contributes for 20 years, his own contribution of Rs 7.20 lakh (12%*25000*12*20) will yield him a corpus of ?approximately Rs 19 lakh which includes the interest on his contribution.

What’s more, the employer’s contribution of Rs 4.20 lakh will grow to Rs 11.50 lakh approximately which includes the interest component too. In this case, we have assumed an interest rate of 9% per annum compounded yearly for the whole period. As he became jobless in Jan, he is unemployed for a period of more than 2 months as on date.

Under the current rule, if he withdraws his EPF corpus before May 1, then he can withdraw the full corpus of Rs 30.5 lakh. However, if he doesn’t withdraw before May 1, he can take out his own contribution and interest of Rs 19 lakh even after this date provided he remains jobless. However, the remaining Rs 11.50 lakh can be withdrawn only after he reaches the age of 58 years. You can however, withdraw 90% of the employer’s contribution plus interest at the age of 57 years. Importantly, the erstwhile rule of zero interest on inoperative accounts was quashed from April 1. Hence the employer’s contribution lying idle in the EPF account till the age of 58 years will continue to earn interest.

Source: Economic Times

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EPFO Likely to Retain Interest Rate at 8.75% for Current Fiscal

EPFO has been paying 8.75% interest rate for the last two fiscals to its 5 crore organised sector subscribers. Retaining of the rate for the third year in a row might face resistance from the central trade unions, who are pressing for a 9% returns for the current fiscal.

The Employees’ Provident Fund Organisation (EPFO) is likely to retain the rate of interest at 8.75% for provident fund deposits for the current fiscal, sources in the labour ministry said.

EPFO has been paying 8.75% interest rate for the last two fiscals to its 5 crore organised sector subscribers. Retaining of the rate for the third year in a row might face resistance from the central trade unions, who are pressing for a 9% returns for the current fiscal.

However, a final decision on this would be taken at a meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, tomorrow in Chennai. The CBT includes representatives from the government, employers and employees.

Sources said that the rates would most likely to be retained at the previous two years’ level considering the government’s proposal to bring down the rates of small savings with effect from April 1 to allow banks to reduce their lending rate in tandem with rate cuts by the Reserve Bank.

EPFO provides the rate of interest from its earnings on investment on formal sector workers’ fund without any assistance from the government. The income projection of the retirement fund body is upwards of R34,844 crore for the current fiscal. At this, EPFO would not have any problem to raise the rates to even 9% considering that it would still have R100-odd crore surplus.

Sources, however, said the finance ministry is not in agreement with the idea of raising the rates since it would have a lot of bearings on other savings schemes as well. The Finance Audit and Investment Committee of the EPFO had earlier recommended 8.95% rate of interest rate on PF deposits.

Source : financialexpress

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EPFO may pay 9% interest on PF deposits for 2015-16

EPFO may pay 9% interest on PF deposits for 2015-16 

Retirement fund body EPFO may provide 9 per cent interest on PF deposits for this fiscal, which is higher compared to 8.75 per cent provided in previous two fiscals to its over five crore subscribers.

The Employees Provident Fund Organisation’s (EPFO) finance panel has recommended raising the interest rate on statutory savings of over 5 crore subscribers from 8.75% to 8.95% during the current fiscal.

“The income projection of Rs 34,844.42 crore for the current fiscal is expected to be revised upward. Thus the body can provide 9 per cent rate of interest on PF deposits for 2015-16,” an EPFO trustee and Bharatiya Mazdoor Sangh Secretary P J Banasure told PTI.

The Employees Provident Fund Organisation’s (EPFO) Finance Audit and Investment committee (FAIC) recommended 8.95 per cent interest on PF deposits for the current fiscal in its meeting earlier this week.

Banasure, who is also a member of FAIC said:”If the EPFO provides 8.95 per cent interest rate on PF deposits for 2015-16, it will leave a surplus of Rs 91 crore as per income projections worked out in September last year. But the FAIC will meet again later this month to vet the latest income estimate which is likely to be revised upward.”

According to EPFO income projections worked out in September, providing 9 per cent interest on PF will result in a deficit of Rs 100 crore. “We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16,” he said.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.

However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.

The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government.

Source:www.economictimes.indiatimes.com

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Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal from PF

Employees’ Provident Fund Organisation

(Ministry of Labour & Employment, Govt. of India)

Head Office

Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place, New Delhi – 110066

Phone: 011 – 26172685, Fax: 011-26173022, e-mail: rc.fu@epfindia.gov.in

No. WSU/6(1)2011/IT/Vol-IV/5931

Date: 21 May 2015

To

All Addl. CPFC (Zones)

All RPFC/OIC of

ROs/SROs.

Sub: Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal from PF.

Ref: Head Office circular of even number dated 18.03.2015.

Sir/Madam,

The Finance Act, 2015 (20 of 2015) has inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from 1st June, 2015. A copy of the said provision is enclosed for information.

2. Income Tax shall be deducted at source (TDS) at the following rates if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30,000/-, with service less than 5 years:-

a) TDS will be deducted @ 10% provided PAN is submitted. In case Form No. 15G or 15H is submitted by the member, then no TDS shall be deducted.

b) TDS will be deducted @ minimum marginal rate (i.e. 34.608%) if a member fails to submit PAN (and no Form No 15G or 15H).

3. TDS shall not be deducted in respect of the following cases:-

 Transfer of PF from one account to another PF account.

 Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.

 If employee withdraws PF after a period of five years of continuous service, including service with former employer.

 If PF payment is less than Rs. 30,000/- but the member has rendered service of less than 5 years.

 If employee withdraws amount more than or equal to Rs. 30,000/-, with service less than 5 years but submits Form 15G/15H along with their PAN

A flow-chart is appended for understanding the implications of the amended provisions in the Income Tax Act, 1961.

4. Kindly take note that TDS is deductible at the time of payment of provident fund in Form No. 19. Form No. 15H is for senior citizens (60 years & above) while Form No. 15G is for individuals having no taxable income. Form 15G & 15H are self-declarations and may be accepted as such in duplicate. Form 15G and 15H may not be accepted if amount of withdrawal is more than Rs. 2,50,000/- and Rs. 3,00,000/- respectively. Members shall quote PAN in Form No. 15G/15H and in Form No. 19. The field offices may purchase pre-printed Form No. 15G & 15H to assist the members in filling up Form No. 19.

5. The process for authorization of Form No. 19 shall be as per the existing system. However, whenever TDS has to be deducted @10%, the same may be approved on Form No. 19 by the APFC (Accounts). Wherever the TDS has to be deducted @34.608%, the same may be approved on Form No. 19 by a RPFC level officer. These instructions shall apply in initial stages of implementation of the amended income tax provisions. Since the members may not be aware of the new provisions, therefore, it shall be the responsibility of SSA (Accounts) to communicate the same to the member on telephone and record the same in Form No. 19 to submit PAN, Form No. 15G/15H, if applicable. A system generated statement of Tax Deducted at Source (TDS) may invariably be sent to the member.

6. Members who have rendered continuous service of 5 years or more, including service with former employer, shall not be required to submit PAN and Form No. 15G/15H along with Form No. 19. Similarly, members whose service has been terminated due to his ill health, contraction or discontinuance of business of employer or other cause beyond the control of the member shall not be required to submit PAN, Form No. 15G/15H alongwith Form No. 19. In such cases, no income tax (TDS) shall be deducted in terms of Rule 8 of Fourth Schedule to the Income Tax Act, 1961.

7. The field offices shall deposit the Tax Deducted at Source (TDS) and returns thereof by 7th of the following month. The existing TAN number obtained the respective offices may be used to deposit tax to the local income tax authority. The in-house responsibility for deposit of tax and returns thereof shall be with Drawing & Disbursing Officer (DDO) as per the existing system. The concerned officers and staff may be given an in-house training for implementation of new provisions and RPFCs may engage CAs, who are on our panel.

8. The above should be made applicable with effect from 01.06.2015 and all steps should be taken before hand such as procuring copies of Form 15G and 15H. In case of any clarification, the same may be escalated to the Head Office.

Yours faithfully,

Sd/-

(Sanjay Kumar)

FA&CAO

Source:http://www.epfindia.com/Index.htm

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Labour Minister Shri Tomar announces launch of Minimum Pension Scheme across 120 locations in India

Press Information Bureau 

Government of India

Ministry of Labour & Employment 

Labour Minister Shri Tomar announces launch of Minimum Pension Scheme across 120 locations in India 

37 Union Ministers to felicitate pensioners on September 30 

The Union Minister of Labour & Employment, Steel and Mines, Shri Narendra Singh Tomar announced the launch of a guaranteed minimum pension of Rs 1000 per month under Employees’ Pension Scheme, 1995. Speaking to journalists at a press conference in here today, he said, the Union Government has decided to organize functions in every office of the Employees Provident Fund Organisation spread across 120 locations in the country. It has also been decided that in 37 locations, Union Ministers will preside over the functions and felicitate the pensioners whose pension is getting increased. 

Shri Tomar stated that this is being done to interact with the pensioners and to ensure that no eligible person is left out. He expressed confidence that this interaction will help the EPFO to design its pension re-engineering process in a better way. The Secretary, Ministry of Labour and Employment, Smt Gauri Kumar and Central PF Commissioner Shri K.K. Jalan were also present on the occasion. 

The Minister said that the long-pending demand for increase in the pension will soon see the light of day. At present, a large number of pensioners are getting only paltry amounts as pension under the scheme. Nearly two-thirds of the pensioners are in receipt of pension of less than 1000 rupees. Thus, this move would benefit approximately 32 lakh out of a total of 49 lakh pensioners who are getting below Rs 1000 as pension, he added. 

It is relevant to note that the wage ceiling for coverage under the three schemes of EPFO i.e. Employees Provident Fund Scheme, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme (EDLI) has also been increased from monthly Rs 6500 to Rs 15000. This increased wage ceiling is expected to bring in an additional 50 lakh employees under the ambit of these social security programmes. The increased wage ceiling will also result into higher benefit under the EDLI from a maximum of Rs.1,30,000 to a maximum of Rs 3,60,000. 

In the recent past EPFO has taken a series of measures to bring in greater transparency and efficiency in its functioning. These include the facility for online registration of establishments (OLRE), Online Transfer Claim Portal (OTCP), e-passbook and electronic payment of PF and Pension benefits through NEFT (National Electronic Fund Transfer) and CBS (Core Banking Solution). 

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EPFO makes it mandatory to provide workers’ bank account numbers

Retirement fund body EPFO made it mandatory for firms to provide their employees’ bank account numbers with IFSC code of bank branch to facilitate allotment of universal PF account number and payment to its subscribers.

The Employees’ Provident Fund Organisation headquarters has asked its over 120 field offices to seek the core banking account numbers with IFSC code of bank branch for seeding the same with the portable Universal PF Account Number (UAN).

“…government issued direction ..to issue order making submission of Bank Accounts by the members mandatory in order to facilitate the allotment of UAN, proper implementation of the EPF Scheme, 1952 and removal of the difficulties in the matter of payment of accumulations in the Fund to members after they cease to be such members,” an office order said.

EPFO’s Central Provident Fund Commissioner K K Jalan has said that these directives shall help the body in getting the bank account details of all the members which are necessary for making UAN operational.

At present, EPFO has already captured bank account details in respect of 1.80 crore employees, PAN details in respect of 86.9 lakh employees and Aadhar number in respect of 28.2 lakh employees.

The EPFO is in the process of making portable Universal PF Account Number (UAN) operational for its 4.17 crore contributing subscribers by October 15.

The body had started the process of seeding the 4.17 crore UANs with subscribers bank account numbers, PAN, Aadhaar and other Know-your-Customers (KYC) details to improve the delivery of its services in July this year.

As per the office order, the firms will have to furnish the information regarding the core banking account number with IFSC code of the bank branch in respect of existing members by October 15.

Besides the employers shall provide the information regarding bank account and IFSC code in respect of previous members under their employment by October 31.

The order further stated that every employer henceforth will provide the core banking account number with IFSC code of the bank branch in respect of every new member on joining the Fund.

As per the order, the subscribers of the fund who are presently not employees of any establishment, will provide their core banking account numbers with IFSC code of the bank branch, a crossed cheque folio with member’s name printed thereon and their previous PF account number themselves at any Regional or Sub-Regional Office of the EPFO. These category of members shall be provided this information by November 31.

Source :http://goo.gl/Z7UjcF

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Criteria of Employees for Coming Under Purview of EPFO

Press Information Bureau 

Government of India

Ministry of Labour & Employment 

Criteria of Employees for Coming Under Purview of EPFO 

The Minister of State for Mines, Steel and Labour and Employment, Shri Vishnu Deo Sai has said that the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 applies to every establishment which is a factory engaged in any industry specified in Schedule- I or falls in class of establishments notified by the Government and engaging twenty or more persons. 

In a written reply in the Rajya Sabha today, Shri Vishnu Deo Sai has said that a proposal to reduce the threshold limit from 20 persons to 10 persons for coverage under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 is included in the comprehensive amendment to the Act, which is under consideration of the Government. 

The Minister said that the timeframe for implementing this proposal has not been fixed. The number of employees to be benefited from this proposal has not been worked out. 

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EPFO likely to provide 9% interest for 2014-15

Retirement fund body Employees’ Provident Fund Organisation (EPFO) is likely to provide nine per cent rate of interest on provident fund (PF) deposits for the current financial year to its 50 million subscribers, slightly higher than 8.75 per cent paid in 2013-14.

"The initial estimates indicate EPFO can easily provide nine per cent rate of interest on PF deposits for 2014-15," a source said.

According to him, improved market conditions, specially after the formation of a new government at Centre last month, have raised expectations of higher yields from various investments by the body.

PENSION POT

• EPFO is a retirement fund body
• It manages a corpus of Rs 5 lakh crore
• It has got Rs 71,195 crore as incremental deposits in 2013-14
• This is 16% higher than Rs 61,143 crore in 2012-13

EPFO manages a corpus of over Rs 5 lakh crore. It has received Rs 71,195 crore as incremental deposits from its subscribers under social security schemes run by it during 2013-14, 16 per cent higher than Rs 61,143 crore collected by it in 2012-13.

The source said EPFO also plans to unlock its investment of around Rs 55,000 crore in Special Deposit Scheme (SDS). The government pays a fixed rate of eight per cent on SDS to EPFO which is lower than other investment options available in the present legal frame work.

EPFO is also expected to improve yields or returns on its investment under the new norms prescribed under an investment pattern notified by the Labour Ministry last year.

According to the new pattern, EPFO can invest up to 55 per cent of its funds in debt securities issued by banks and financial institution and other body corporates.

The new investment pattern also allows EPFO to invest up to five per cent of its corpus into money market instruments, including units of mutual funds, equity linked schemes regulated by Securities and Exchange Board of India.

The new investment norms also provide for parking up to 55 per cent of the EPFO funds in a new category comprising government and state bonds.

Source:http://www.business-standard.com/article/pf/epfo-likely-to-provide-9-interest-for-2014-15-114060600733_1.html

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EPFO panel grant regular tax exemption to 68 private PF trusts

EPFO panel grant regular tax exemption to 68 private PF trusts

An empowered committee of the retirement fund body EPFO today approved granting regular tax exemption to 68 private provident fund trusts, which would provide tax benefits for subscribers of these firms.

The meeting was called as Finance Minister P Chidambaram did not extend a March 31 deadline for the trusts to get regular tax exemption through the Employees' Provident Fund Organisation (EPFO).

Chidambaram made it mandatory in 2006 for these trusts to procure an exemption certificate by March 31, 2007, a deadline that has been extended and is now set to expire on March 31.

"The first meeting of an empowered committee held today for granting regular tax exemption to private PF trusts. We have approved 68 such cases," EPFO Central PF Commissioner K K Jalan told PTI.

Regular tax exemption is granted by the EPFO's apex decision-making body, the Central Board of Trustees, headed by the Labour Minister. However, the power to grant exemption was delegated to the committee by the trustees on January 13.

According to a senior official, EPFO is still processing applications from 168 such trusts, for grant of regular tax exemption. EPFO head office has received around 30 more such applications after January this year.

Jalan, who is also heading the committee, said that the panel would take up more such applications in the next meeting which may be called in next fortnight.

Private PF trusts are formed by firms that manage the money and accounts of their workers themselves and have exemption from filing PF returns. The members of these trusts enjoy income tax and other benefits at par with EPFO subscribers.

Such trusts can start functioning after seeking ad hoc tax exemption from the regional commissioner after which they apply for regular tax exemption.

Once approved, a PF trust's regular tax exemption is notified by the Labour Ministry or state government.

According to an official, if the deadline for getting regular tax exemption is not extended in the full-fledged budget to be presented by the next government after the general elections then the defaulting trusts would come under the income tax net.

At present, the EPF subscribers are exempted from paying income tax on deposits, accrual of interest and withdrawal of their funds.

Meanwhile, the EPFO has made it mandatory for all such trusts to file their returns online from April 1, 2014.

Source:www.business-standard.com

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Fixed medical allowance payable to the serving as well as retired employees of the EPFO for outdoor treatment-Clarification.

Employees’ Provident Fund Organisation

(Ministry of Labour & Employment, Govt. Of India)

Bhavishya Nidhi Bhawan, 14-Bhikaiji Cama Place, New Delhi-110 066

No. HRM-8/V/12/1/2003/FMA/Vol-II/26632

Dated: – 14th March 2014

To, 

     All Addl. Central P.F. Commissioner (Zones)/Director (NATRSS)

     All RPFCs-In-Charge of the Region (including RPFC (ASD)

     All Officer-In-Charge of SROs

Subject: Fixed medical allowance payable to the serving as well as retired employees of the EPFO for outdoor treatment-Clarification.

Reference: HRM-8/V/12(1)2003/FMA/Vo1.-II/6160 dated 13.06.2013

Sir/Madam,

The Employees & Pensioners of the EPFO, who are not covered under Central Government Health Scheme, (CGHS) are paid Fixed Medical Allowance (FMA) per month to cater to the cost of medicines/treatment etc. where hospitalization is not involved. At present, FMA is being given to employees/pensioners @ Rs. 2000 p.m.

Several references have been received regarding admissibility of Fixed Medical Allowance to both the spouse ,who are working or retired. In this regard it is clarified as under:-

a) In the following cases, only one of the spouse will be eligible for the facility of Fixed Medical Allowance

i) If both husband and wife are working in the EPF Organisation or both of them have retired from EPFO & are in same station.

ii) In case where one is EPFO employee & the spouse is EPFO pensioner & are in same station.

iii) In case where one is serving/retired official of EPFO and spouse is serving/retired Government or any other organization (including private Firm/Office).

Notwithstanding anything said above, if any one of the spouse is posted outside station (working), residing separately and need medical facilities as per entitlement without spouse, then both of them will be eligible for FMA.

b) As per the aforementioned circular dated 13.06.2013, if two or more members of ‘family’ are working in the EPFO, only one of them will be eligible for the facility of Fixed Medical Allowance. In this regard, it is further clarified that besides the spouse, other members of the ‘family’ as defined in CS (MA) Rules, 1944, who are working in EPFO & who are not dependent and also not residing with govt. servant shall be considered as a separate entity.

c) In the case of an EPFO employee whose wife/husband is an employee of a Government or any other organization (including private Firm/Office) he/she will be required to give an undertaking that his/her spouse is not availing of medical facilities in cash, if any, granted by their respective employers, so as to be eligible to receive FMA in EPFO.

Yours faithfully,

Sd/-

(UDAY BAXI )

REGIONAL P.F. COMMISSIONER-I (HRM)

Source:http://www.epfindia.com/Circulars/Y2013-14/HRM8_FMA_26632.pdf

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Digital Signatures Under EPFO.

   The Employees Provident Fund Organisation (EPFO) has not made it mandatory for all employers with more than 1000 workers to send their digital signatures to the EPFO.

   However, Employees’ Provident Fund Organisation (EPFO) is implementing the facility for online claim settlement in respect of transfer claims. This facility is optional and the claims can either be filed on line or through physical form. The system will be made operative after digital signature of willing employer or his representative is registered with EPFO. Necessary communication to this effect has already been sent to all employers and the process of registration of digital signature has also begun.

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Data of Members under Employees’ Provident Fund Organization (EPFO)

   Employees’ Provident Fund Organisation (EPFO) has date of birth details for more than 4 crore members out of a total members of 8.87 crore as on 01.08.2013. Web facility has been provided to the Employers to upload the date of birth details of all employees. Further, Field Offices of EPFO have been directed to ask Employers to upload these details.

   Providing Annual Statement of Accounts (Account Slips) to the members of EPF is already in place. Para 73(1) of the EPF Scheme 1952 lays down that a statement of account in respect of each member through his last employer to be sent after the close of each year.

   Besides, the following facilities have also been provided for the PF members to know their PF balance:

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Passbook for PF Account Holders.

Press Information Bureau
Government of India

   Passbook for PF Account Holders

   There are no dormant accounts in Employees’ Provident Fund Organisation (EPFO). However, as per provision of para 72(6) of the Employees’ Provident Funds (EPF) Scheme, 1952, a member’s account under certain condition is classified as Inoperative Account. All such Inoperative Accounts have a definite claimant.

   As per Para 73(1) of the EPF Scheme, 1952, a statement of account to each member through his last employer will be sent after the close of each year, showing opening balance, contribution during the year, interest credited, amount debited and closing balance of the year.

   Following initiatives have been taken by the EPFO to provide details to the PF account holders:-

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Leveraging Aadhaar for improving the services of EPFO — regarding.

Employees' Provident Fund Organisation
Ministry of Labour & Employment, Govt. Of India
Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place, New Delhi-110066

R-I/UID/2010/37496

date: 06.02.2013

To
All ACCs (Political states),
All RPFC-I (In-charge of Regions),
All RPFC-II (In-charge of SROs)
(Through web circulation)

Subject:- Leveraging Aadhaar for improving the services of EPFO — regarding.

Sir,
     This is in reference to Head Office letter No. RI/UID/2010/30051 dated 21.01.2013 on the subject cited above.

   The issue of expeditious enrolment of the EPF members was discussed with UIDAI Officials. It has emerged that UIDAI through its registrars has been organising enrolment camps in 18 states only. Register General of India (RGI) has been collecting data in respect of the remaining states through National Population Register (NPR). While the data collected by RGI is also being processed for issue of Aadhaar numbers by UIDAI, the methodology used by RG1 for setting up enrolment camps is different i.e. it is being done on the basis of house-to-house data collected by enumerators during Census Operations 2011, unlike UIDAI camps, where any resident, irrespective of the place of residence, can get himself enrolled for Aadhaar number. Thus enrolment may take considerable time.

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Investment by EPFO in Equities

   The Employees Provident Fund Organisation is not considering investment in equities as funds earning 12 per cent annually in the National Pension System.

   As on 31.10.2012, the total of Employees’ Provident Fund Organisation (EPFO) corpus invested in private sector is Rs. 26,896.54 Crore including Rs. 4.05 Crore investments in blue chip manufacturing companies.

   Employees’ Provident Fund Organisation (EPFO)ensure security of the capital contributed by the beneficiaries with risk free, consistent return on the same.

   This information was given by the Minister of State for Labour Shri K.Suresh in reply to a written question in the Rajya Sabha today.

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