Lok Sabha Question No. 58 (UNSTARRED), answered on 2016-04-25
Subject: Expansion of EPF Ambit
Ministry: LABOUR AND EMPLOYMENT
Asked by: SUMEDHANAND SARASWATI, SANTOSH AHLAWAT

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 58 TO BE ANSWERED ON 25.04.2016

## EXPANSION OF EPF AMBIT

58. SHRI SUMEDHANAND SARSWATI: SHRIMATI SANTOSH AHLAWAT:

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

- (a)whether the Government proposes to bring in more employees from Public and Private sector as well as unorganized sector into ambit of EPF;
- (b)if  so,  the  details  thereof  and  the  steps  taken/being  taken  by  the Government in this regard;
- (c)whether all the EPF accounts have been made online;
- (d)if not, the reasons therefor and the time by which all EPF accounts
- are likely to be made online;
- (e)the amount lying unclaimed in EPF accounts for more than 5 years;
- and
- (f)the  steps  taken/being  taken  by  the  Government  to  settle  the unclaimed amount?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a) & (b):  Yes, Madam. A proposal for comprehensive amendment to the Employees' Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952 is under consideration of the Government which, inter alia,  includes  reducing  threshold  limit  for  coverage  from  20  to  10 employees under the Act. However, at present there is no proposal to bring  unorganized  sector  workers  under  the  ambit  of  the  EPF  &  MP Act, 1952.
- (c):             A  member can view his provident fund balance and status of his claim through online mode.

(d):                Does  not  arise  in  view  of  reply  to  part  (c)  of  the  Question above.

(e):         There is no unclaimed amount in Employees' Provident Fund (EPF). However, as per para 72(6) of the Employees' Provident Funds Scheme 1952, certain amounts are classified as 'Inoperative Accounts' in which contribution have not been received for 36 months continuously.  All  such  Inoperative  Accounts  have,  however,  definite claimants.

As per  Annual  Accounts  of  Employees'  Provident  Fund Organisation  (EPFO),  as  on  31.03.2015,  an  amount  of  Rs.  35,531.39 crore has been classified as inoperative accounts. The details relating to number of inoperative accounts is not maintained separately.

(f):          The  following  initiatives  have  been  taken  to  settle  the inoperative accounts:-

- (i) EPFO has launched a portal namely 'Inoperative Accounts Online Help  Desk'  to  assist  the  members  to  identify  their  inoperative accounts.
- (ii) Instructions have  been  issued  to reconcile the inoperative accounts and further identify the beneficiaries through employers.
- (iii) EPFO has  allotted  Universal  Account  Number  (UAN)  which  will enable  to  identify  the  members  without  intermediation  of  the employers.
- (iv) Awareness campaigns have been undertaken through the electronic as well as print media from time to time to educate the  members  to  transfer  or  withdraw  their  Provident  Fund  (PF) accumulations.

As a result of the above steps, the total amount paid to the beneficiaries from inoperative accounts has shown an increase in the last  few  years.  The  total  amount  paid  out  of  inoperative  accounts during the last four years includes as under:-

| Year    |   Amount settled (Rs. in crores) |
|---------|----------------------------------|
| 2011-12 |                           955.51 |
| 2012-13 |                          2890.4  |
| 2013-14 |                          4316.71 |
| 2014-15 |                          6491.01 |

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