EPFO Gains Momentum: 27 Establishments Surrender Exemptions in Two Years

In the past two years, 27 establishments have surrendered EPFO exemptions, adding 30,000 employees and Rs 1688.82 crores to the EPFO fund. Improved services, faster claim settlements, and better returns are driving this trend.

In a significant trend, 27 establishments have relinquished their EPFO exemptions over the past two years, incorporating about 30,000 employees and Rs 1688.82 crores into the Employees' Provident Fund Organisation's (EPFO) fund. The Ministry of Labour and Employment highlighted this in a recent release.

These establishments now prefer EPFO to directly manage their employees' Provident Fund (PF), allowing them to concentrate on core business activities. The enhancements in claim settlement speeds, return rates, stringent monitoring, and ease of engagement have elevated the services EPFO provides to both establishments and members.

To further streamline compliance, EPFO, under the Ministry of Labour and Employment, has implemented multiple steps, including publishing comprehensive Standard Operating Procedures (SOPs) and manuals for exempted establishments. Additionally, a new software and portal are set to be launched, simplifying the exemption surrender process.

Exempted establishments must offer benefits at least equal to those of EPFO and comply with exemption conditions under Section 17 of the EPF Act. As of March 31, 2023, 1,002 exempted establishments manage Rs 352,000 crores for 31,20,323 members.

The drive towards better stakeholder focus and professionally managed funds delivering consistent returns has spurred the trend of surrendering exemptions, the Ministry noted. (ANI)