Lok Sabha Question No. 2024 (UNSTARRED), answered on 2022-03-14
Subject: Contribution of Employees and EPF
Ministry: LABOUR AND EMPLOYMENT
Asked by: Nihal Chand Chauhan

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 2024

## TO BE ANSWERED ON 14.03.2022

## CONTRIBUTION OF EMPLOYEES AND EPF

† 2024. SHRI NIHAL CHAND:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)the  details  of  the  contribution  of  basic  salary  of  employees  under
- the Employees Provident Fund as prescribed by the Government;
- (b)whether the Government proposes to bring any change in the said contribution, if so, the details thereof;
- (c)the  details  of  benefits  provided  to  the  employees  through  EPF
- Scheme at present by the Government; and
- (d)whether  the  Government  proposes  to  provide  better  facilities  to
- employees, if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

- (a): Under the Employees' Provident Fund (EPF) Scheme, 1952, an  employee  of  any  covered  establishment  drawing  monthly  wages up  to  Rs.  15,000  is  statutorily  required  to  join  the  fund  and  to contribute  12%  of  wages,  which  includes  basic  wages,  dearness allowance and retaining allowance, if any.
- (b): The  Code  on  Social  Security,  2020  (36  of  2020),  was notified  on  29.09.2020,  which  subsumes  9  Central  labours  laws including the Employees' Provident Funds and Miscellaneous Provisions  Act,  1952.    There  is  a  provision  under  section  16  of  the said  Code  which  enables  the  Central  Government  to  prescribe,  by notification,  different  rates  of  employees'  contribution  for  specified period for any class of employee. However, the said Code has not yet come into force.

(c) & (d): A  member  of  the  EPF  Scheme,  1952  is  entitled  to  the benefit of withdrawal and advance from the EPF as per the provisions contained in  the  said  scheme.  Further,  the  Scheme  was  amended  in March,  2020  by  inserting  the  provision  for  allowing  non-refundable advance to EPF members during Pandemic / Epidemic. This provision allowed EPF members to avail advance from their EPF account to the extent of 75 per cent of their balance or three-month wages whichever is less. The EPF members who have already availed the first COVID-19 advance can also opt for a second advance. A member is also entitled for credit of interest on his/her PF accumulations each year.

The  steps  being  taken  by  the  Employees'  Provident  Fund Organisation (EPFO) for providing faster settlement of all types of PF claims are as under:

- Allocation  of  Universal  Account  Numbers  (UAN)  to  members  of PF  for  consolidation  of  previous  PF  accounts  and  portability  in
- I. case of change of employment.
- II. Online  Transfer  Claim  Portal  (OTCP)  has  been  introduced  to facilitate seamless transfer of claims.
- The facility  for  submission  of  claim  forms  through  online  mode has been introduced for those subscribers who have seeded their
- III. KYCs against the UAN.
- The services of EPFO for employees have also been integrated and offered through the Unified Mobile Application for New-age Governance  (UMANG)  Application,  which  enables  a  member  to access his passbook, track the status of his claim, submit online
- IV. claim form, etc.
- V. A  single-page  Composite  Claim  Form  has  been  introduced  by replacing the erstwhile multiple Claim Forms for withdrawals.
- VI.
- A  member  is  no  longer  required  to  submit  documents  e.g. medical certificate and may only self-certify to avail withdrawals.
- The entire payment to subscribers is done electronically through
- VII. National Electronic Funds Transfer (NEFT) system.

The  provisions  relating  to  facilities  to  the  employees  covered under  EPFO  are  determined  by  the  provisions  of  the  Employees' Provident  Funds  and  Miscellaneous  Provisions  Act,  1952  and  the schemes  framed  thereunder  and  their  betterment  is  an  ongoing exercise.

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