Due to high defaults in depositing provident fund contribution from the side of employers, the EPFO (Employees’ Provident Fund Organisation of India) decided to give monthly statement to subscribers instead of issuing one annual summary. The EPFO expected to make it possible from the financial year 2012-13.
Provident fund contribution is a compulsory contribution of employee, which is meant for meeting the important financial needs of the employee including retirement needs. 12% of the salary (Basic and D.A) is deducted from the employee’s salary and the same amount will be added by the employer and it is the responsibility of the employer to deduct this EPF and deposit it in EPFO. There are a number of defaulters those who are not depositing such amount in EPFO or not depositing in Time. So to overcome such a tendency the EPFO decided to give monthly statements which helps the employee to know whether the employer deposited the amount or not.
At present the EPFO is handling the Provident fund of around 5 crore employees (subscribers). The EPFO is computerized almost all data and they are equipped to provide such a monthly statement and related information to its subscribers from the next financial year. The present summary slip which they distributed to the subscribers is not enough to know the full details about their subscription. Most of the subscribers (employees) are not even fully aware about the details of their own contribution.
In the words of Central Provident Fund Commissioner Samirendra Chatterjee, “Often subscribers do not calculate what the total amount should be and do not notice even if contributions have not been made in particular months,” He added that once monthly data is available, omissions can be easily identified.
The estimated default amount is around Rs. 166.12 crore and the amount may be more than that the estimated amount. When the monthly statement is made available the EPFO expected more complaints from subscribers.
Every year there is an increase of Rs. 20000 crore to Rs. 30000 crore to the corpus. This is a good movement from EPFO and we appreciate EPFO for the same. We also hope that in the near future, the EPFO may make available online access of the individual details to the registered subscribers. It is the right of each subscriber to know the details of their investment (Contribution) and the growth of their contribution.
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