EMPLOYMENT PROVIDENT FUND ORGANISATION
1. Context
Recently released Employees Provident Fund Organisation's (EPFO) provisional payroll data revealed that EPFO has added 17.20 lakh net members in April this year as compared to the net addition of 13. 40 lakh members during March 2023.
2. Key points
- Out of 17.20 lakh members, around 8.47 lakh new members have come under the social security coverage of EPFO for the first time.
- Among the newly joined members, the age group of 18-25 years constitutes 54.15 per cent of the total new members added during the month.
- The age group of 18-25 years indicates that the majority of the members joining the organised sector workforce of the country are mostly first-time job seekers.
3. About EPFO
- EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 27.74 crore accounts for its members.
- The Employees Provident Fund came into existence with the promulgation of the Employee's Provident Funds Ordinance on the 15th of November 1951.
- It was replaced by the Employees Provident Funds Act, of 1952.
- The Employees Provident Funds Bill was introduced in Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments.
- The Act is now referred to as the Employees Provident Funds and Miscellaneous Provisions Act, 1952 which extends to the whole of India.
- The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees Provident Fund, consisting of representatives of Government (Both Central and State), Employers and Employees.
- The Central Board of Trustees administers a contributory provident fund, a pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
- The Board is assisted by the Employees PF Organization (EPFO), consisting of offices at 138 locations across the country.
- The Organization has a well-equipped training set-up where officers and employees of the Organization, as well as Representatives of the Employers and Employees, attend sessions for training and seminars.
- The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
- The Board operates three schemes -EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
4. Vision
An innovation-driven social security organisation aiming to extend universal coverage and ensure Nirbadh (Seamless and uninterrupted) service delivery to its stakeholders through state-of-the-art technology.
5. Mission
- To meet the evolving needs of comprehensive social security in a transparent, contactless, faceless and paperless manner.
- To ensure Nirbadh services with multi-locational and auto claim settlement process for disaster proofing EPFO.
- To ensure ease of living for members and pensioners and ease of doing business for employers by leveraging the Government of India's technology platforms for reaching out to millions.
6. Schemes
6.1. EPF Scheme 1952
- Accumulation plus interest upon retirement and death.
- Partial withdrawals allowed for education, marriage, illness and house construction.
- Housing Scheme for EPFO Members to achieve the Hon'ble Prime Minister's Vision of Housing for all Indians by 2022.
6.2. Pension Scheme 1995 (EPS)
- The monthly benefit for superannuation/ retirement, disability, survivor, widow (er) and children.
- Minimum pension on disablement.
- Past service benefit to participants of erstwhile Family Pension Scheme, 1971.
6.3. Insurance Scheme 1976 (EDLI)
- Benefit provided in case of death of an employee who was a member of the scheme at the time of death.
- The benefit amount is 20 times the wages.
- Maximum benefit of 6 lakh.
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For Prelims: Employees Provident Fund Organisation, social security, Employees Provident Funds Act, of 1952, EPF Scheme, EPS, EDLI Insurance Scheme,
For Mains:
1. Explain the role and functions of the Employees Provident Fund Organisation (EPFO) in India's social security system. Discuss the key schemes administered by EPFO and their benefits for employees in the organized sector. (250 Words)
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Previous Year Questions
1. The maximum assurance benefit payable in the Employees’ Deposit Linked Insurance Scheme (EDLI) has been enhanced to Rs. _________ from the earlier maximum benefit of Rs.6 lakh (DSSSB PGT 2021)
A. 7 lakh B. 10 lakh C. 9 lakh D. 8 lakh
Answer: A
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Source: EPFO
