EPFO notice to 1,070 companies for ineligible employees’ PF claim

Sushant Ranjan
Tuesday, 29 January 2019

The Employee Provident Fund Organisation (EPFO) has issued notices to 1,070 companies in Pune and Pimpri-Chinchwad for claiming benefits under the Pradhan Mantri Rozgar Protsahan Yojana (PMRPY), for 7,579 ineligible employees.

Pune: The Employee Provident Fund Organisation (EPFO) has issued notices to 1,070 companies in Pune and Pimpri-Chinchwad for claiming benefits under the Pradhan Mantri Rozgar Protsahan Yojana (PMRPY), for 7,579 ineligible employees. 

These companies informed the PF office that these employees are first timers in the job. 

The companies have to give explanation to the PF office about these employees. If the answers are not satisfactory, the companies will face legal action.

The PMRPY scheme has been designed to provide incentive to employers for generation of new employment, where Central government will be paying the 12 per cent (earlier 8.33 per cent) EPS contribution of the employer for the new employment. 

This scheme has dual benefit, where, on one hand, the employer is incentivised for increasing the employment base of workers in the esttablishment, and on the other hand, a large number of workers will find jobs in such establishment. A direct benefit is that these workers will have access to social security benefits of the organised sector.

As per information provided by the EPFO Pune office, “As many as 19,000 companies have registered with the PF office. Out of this, 3,700 companies had benefit claim of 3.73 lakh employees and out of this 1,070 companies have submitted 7,579 claims, which are ineligible employees or staff. If these companies fail to submit their reply, legal action will be taken under PMPRY section 6 (F).”

“The matter is under investigation. However, as per the rule, the companies have to provide details of new employees. These companies have generated new Universal Account Number (UAN). The benefits directly go to the employer. We are waiting for the reply, if the answers are unsatisfactory, legal action will be taken,” said Arun Kumar, PF Commissioner, Region 1.

The eligible employer must have added new employees to his establishment. The new employee must have a UAN (Aadhaar seeded) issued after April 1, 2016 and not have worked in any EPFO employee establishment in the past. To avail benefits under the scheme, the new employee must be earning up to (and including) Rs 15,000 per month.
 
The details of the new employee will be verified from the EPFO database of establishment and member details.

Extorting the system

  • 19,000 companies are registered with EPFO
  • 3,700 companies claim benefits of 3.73 lakh employees under PMRPY
  • 1,070 companies have submitted 7,579 employees claims
  • The companies have to reply to the notice
  • If the reply is unsatisfactory, legal action will be taken

Related News