‘Number of PF defaulter employers reduced’

Source: The Hitavada      Date: 11 Dec 2018 09:51:33


Business Bureau,

“Our target is to make sure that all the employers in the region pay the PF dues on time and we wish to achieve it by March 2019”

The recent awareness prgrammes and action against those not complying with the Provident Fund guidelines have started showing positive results. As per Vikas Kumar, Regional Provident Fund Commissioner-1, the number of the employers who defaulted payment of provident fund dues has significantly come down in the current year.
In an exclusive interview to The Hitavada, he said that out of the total 14,000 employers registered with the office here, there were 3,700 defaulters.

“They were not contributing to the employees’ Provident Fund. But the number has now reduced to 3,000,” he said.
Majority of the defaulters have delayed the dues for three months. “Our target is to make sure that all the employers in the region pay the PF dues on time and we wish to achieve it by March 2019. Accordingly, we are taking actions and creating awareness among all the stake holders,” he said.  He highlighted that non-compliance would attract strict penal action under the IPC. There is a provision action against defaulters under CRPC-110, EPF Act Section 14.

“We have already filed FIR against 14 employers who missed the payment. Prosecution against 400 employers has been already done. However, for smooth functioning, we also urged the employers not to provoke EPFO to take legal actions,” Kumar said. He further said that the Regional office of EPFO is sending SMS to employers every month whenever they default the payment. “We try to bring to their notice that they should pay the dues and avoid legal action,” he explained.

As the head office is monitoring the employees’ account closely, whenever their employer missed the PF payment,
they come to known about it immediately. “This is a sort of double check system that we have brought in place. The aware employees may also ask the employer and
seek explanation on the matter,” he said.
“We are insisting all the employees registered under EPF scheme to update their KYC and regularly access their account. They can access their account through the ‘Umang’ mobile app of the Government,” Kumar said.

Kumar also said that majority of the defaults are labour contractors, who skip the payment. “Principal employers must not release contractors’ monthly payment without verifying compliance of EPF. After all, the principle employers will be liable for punishment despite of the
fact that the concerned  labour contractor skips the payment,” he said.

Kumar also spoke about various other initiatives of the organisation aimed at bringing transparency and efficiency in the system. The EPF has provided E-signature free of cost, so that the employees coverage can be done within 15 minutes. He also elaborated on minimum administrative charge that is applicable in case of lock-out, non production or the establishment
is in debt.