EPFO worried about rising number of defaulters

ST Correspondent
Friday, 8 September 2017

Pune: The Employees’ Provident Fund Organisation (EPFO) officials are working four to five hours extra every day to prepare the list of defaulters, who have not paid employers’ contribution to Provident Fund. 

The number of defaulters has more than doubled in last three months - from 2,700 in June to 6,000 in August.

This ever-growing list of defaulters is a worrisome trend, the officials say.

Pune: The Employees’ Provident Fund Organisation (EPFO) officials are working four to five hours extra every day to prepare the list of defaulters, who have not paid employers’ contribution to Provident Fund. 

The number of defaulters has more than doubled in last three months - from 2,700 in June to 6,000 in August.

This ever-growing list of defaulters is a worrisome trend, the officials say.

According to a senior officer of the department, many companies are not contributing the employers’ share or not depositing the amount with their trust or with EPFO. These companies continue to be defaulters for years at length, while most employees aren’t aware of it. In the defaulters’ list, most are contractors involved with building construction companies in Pune.

“We were continuously meeting with companies to deposit employers’ Provident Fund amount. Initially, we got a good response, but now the defaulters’ list is increasing day by day.

Now, we have started sending show cause notices to all employers to give answers within 15 days, otherwise we will take legal action against them,” said Arun Kumar, Regional Commissioner 2, PF office, Pune region.

“These companies are depositing 12 per cent with EPFO in one month, but next month, they are not doing so. Now, we have given them a time frame, that if they don’t deposit the amount in this month, they have to deposit it by 15th of next month,” said Arun Kumar.

The officials said that action will be taken under prosecution for non-payment of dues and inquiry under section 7 A - assessment.

The official said that if a company is found to be non-compliant with its PF deposit, it will not only have to pay the dues but also 12 per cent interest, with 17 per cent penalty on the same, depending on the number of days of delayed payment. 
 

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