Touted as the world’s largest Social Security Organisation (in terms of clientele and the volume of financial transactions undertaken), the EPFO plays a crucial role in creating a security nest for an employee.
Operating under the Ministry of Labour and Employment, GoI the Employees’ Provident Fund Organization (EPFO) along with the central board of trustees administers a contributory provident fund, a pension scheme and an insurance scheme for the country’s workforce engaged in the organized sector.
Split between two categories the EPFO consists of an exempted and unexempted category.
“No of pensioners: 76,674”
EPFO in Vizag
Under the exempted category there are about 9 companies in the Vizag region that are ‘not inspected’ by the EPFO and therefore are managed by themselves. Some of the examples of such companies include the likes of RINL, HSL, DCI, NTPC. ‘However the pension accounts of these firms are still managed by the EPFO’ statedMs Indira Thirumalaraju, Regional PF Commissioner-I, EPFO speaking to Vizag Industrial Scan.
She further informed that under the unexempted category there are about 12431 establishments where the EPFO receives PF, invests it and then gives it back with interest.
One must note that it is mandatory for an organization/company with more than 20 employees to have EPF. Having said that organizations below the twenty employees thresh hold can also contribute voluntarily.
In terms of the contribution both an employee and employer are required to contribute 12% of the wages of an employee with a maximum ceiling of Rs 15000 per month.
While the entire 12% contributed by the employee goes to his/her PF, in the case of the employer’s contribution of 12% it is bifurcated into two parts with 8.33% going to the respective employee’s pension while the balance going to the employee’s PF. Therefore a major percentage of the employer’s contribution is made to the employee’s pension.
Going Digital – UAN
In order to make it seamless and hassle free for employees to operate their EPFO the organization has made everything online and digital with the launch of UAN. With the Universal account number an employee can utilize services as checking their EPF balance, withdrawals etc. EPFO is thus laying great emphasis in communicating this to employees and to get them link their Aadhar, Bank account and mobile to their respective EPF. ‘This linking of their details will make things much simpler for the employee as he/she would’nt have to go to the employer every time he/she makes a contribution. They can just do it online and further avail services without having to get the employer involved’ said Ms Indira.