The Hindu : New Delhi News : Action plan to streamline EPFO functioning

Online edition of India's National Newspaper
Thursday, Dec 16, 2004

New Delhi

New Delhi

Action plan to streamline EPFO functioning

By Our Staff Correspondent

NEW DELHI, DEC. 15. The Union Labour Minister, K. Chandrasekara Rao, has asked the Employees Provident Fund Organisation (EPFO) to prepare an action plan to streamline the functioning of the Organisation while protecting the interest of the workers. Mr. Rao announced this at a meeting of the Standing Committee attached to the Labour Ministry here this evening.

Addressing members of the committee, Mr. Rao said the Ministry will also look into the allegations of corruption, non-compliance of laws, delay in settlements and under-coverage of the EPF cover.

The issues raised in today's meeting will be discussed in another meeting to be convened shortly.

Today's meeting was called at the behest of the Gurudas Dasgupta (CPI) who said the policy itself was faulty and only 50 per cent of the subscribers were receiving their dues with the contract labourers being the worst hit. He also said that the Central Government and jute industries were the worst defaulters.

Mr. Dasgupta and Chittabrata Majumdar of CPI-M suggested that all contractors should be registered with the EPFO and all enterprises notified with the Provident Commissioner to make them answerable.

They pointed out that an unclaimed amount of Rs 600 crores with the EPFO spoke of non-payment and demanded an enquiry into this accumulation.

Highlighting the achievements of the EPFO, Mr. Rao said it had achieved an all-time record of more than 640 per cent increase in the recovery of arrears from defaulting establishments. The EPFO recovered Rs 5000 crore between 1999-2000 to 2003-04 as against the recovery of Rs 778.50 crores during the nine years from 1990-91 to 1998-99.

Mr. Rao said this was due to the special focus on assessment of dues and its recovery under the `Compliance 2001 Programme' specially launched for the purpose. He said that the EPFO had developed an in-house computer programme to help it in tracking monthly compliance of all establishments, action against defaulters and monitor update of accounts.

The Minister told the meeting that the EPFO provided social security cover to more than 40 crore members working in 3.70 lakh establishments during 2003-04. It had collected Rs 18,473 crore as contribution for the three schemes being operated by it. The EPFO issued Rs 449.77 lakh account slips and settled 47.97 lakh claims during the year and emphasis had been on updating of accounts and speedy settlements of claims.

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