The Ministry of Labour and Employment has launched a significant campaign to bring employees who have been left out of the Employees' Provident Fund Organisation (EPFO) system into the social security net. This special drive, which began recently, will continue until July 26, 2024, giving employers ample time to register eligible workers who have been excluded from EPF benefits.
What the EPFO Campaign Entails
The campaign specifically targets establishments that have failed to enroll certain employees under the EPF scheme despite their eligibility. According to official sources, the initiative aims to identify and register approximately one million workers across various sectors who have been kept out of the EPF system despite meeting the criteria for coverage.
The EPFO has issued clear instructions to all its field offices to actively pursue this campaign and ensure maximum participation from employers. Field offices have been directed to compile lists of establishments where discrepancies in employee enrollment have been identified and proactively reach out to them to complete the registration process.
Implementation Strategy and Process
The implementation of this campaign involves multiple layers of coordination between EPFO offices, employers, and employees. Field offices are utilizing their existing data and conducting fresh surveys to identify non-compliant establishments. Once identified, these establishments will receive formal communications outlining their obligations and the steps they need to take to enroll their eligible employees.
Employers who fail to comply with the campaign directives may face penal actions under the EPF and Miscellaneous Provisions Act, 1952. The Act provides for both monetary penalties and legal proceedings against establishments that deliberately avoid enrolling eligible employees in the EPF scheme.
Benefits of EPF Enrollment for Employees
The EPF scheme provides crucial social security benefits to organized sector workers, offering them financial protection during retirement, as well as during emergencies such as medical needs or housing requirements. Employees contribute 12% of their basic salary to the fund, with employers matching this contribution.
Beyond retirement benefits, EPF subscribers also gain access to the Employees' Pension Scheme (EPS) and Employees' Deposit Linked Insurance (EDLI) scheme, which provide additional financial security through pension benefits and life insurance coverage, respectively.
The current campaign aligns with the government's broader vision of expanding social security coverage to all eligible workers in the country. By bringing excluded employees into the EPF fold, the initiative aims to strengthen the social safety net and ensure more workers can access formal retirement benefits and financial security.
Employees who believe they should be covered under EPF but haven't been enrolled can also approach their local EPFO office directly to register their concerns and seek assistance in the enrollment process.
