The Hindu : Tamil Nadu / Chennai News : Employers urged to adhere to social security norms

Online edition of India's National Newspaper
Sunday, Aug 21, 2005

Tamil Nadu

Tamil Nadu - Chennai

Employers urged to adhere to social security norms

Staff Reporter

"Social security administration in India, a difficult proposition" Though the EPF organisation has wide-ranging powers, including those to issue arrest warrants, attach properties and arrest the violators, it is constrained by its limited workforce.

In developing countries employers are proactive in complying with social security guidelines

CHENNAI: Regional Provident Fund Commissioner-I, A. Mahendra Raju, on Saturday underlined the need for employers to adhere to social security norms.

Required by law to fulfil social security obligations, employers must refrain from evading them and act according to their conscience, he said.

He was addressing a seminar on Employees Provident Fund here by the All India Manufacturers' Organisation (AIMO).

"Social security administration in India has become a very difficult proposition," Dr. Raju said. Elsewhere in the world, including developing countries such as the Philippines, Nepal and Malaysia, the employers were proactive in complying with social security guidelines, while in India they were "reactive."

"In smaller countries like Taipei, they cannot even dream of avoiding statute," he said.

Unless employers comply with the legal requirements on social security and improve the wages of their workers the purchasing power of people would not improve.

Minimum wages

He said some garment units in and around Chennai whose customers include leading brands in the U.S., pay their employees well below the minimum wages.

Though the EPF organisation has wide-ranging powers, including those to issue arrest warrants, attach properties and arrest the violators, it is constrained by its limited workforce.

Only four assistant commissioners and 30 inspectors are available in the region, where the number of establishments covered by the EPF is 12,000, Dr. Raju said.

Senior officials of the EPF Organisation, including K. Rajagopalan, Regional Commissioner-II (Exemption); S. Durga Prasad, Regional Commissioner-II (Compliance); and T. Gopalakrishnan, Deputy Director (Recovery), gave clarifications to the AIMO members.

Interest rate

According to Mr. Rajagopalan, a circular was issued on August 8 informing the establishments that the rate of interest on PF for 2004-05 was 9.5 per cent.

The rate for the current fiscal is yet to be announced by the Centre. AIMO (Tamil Nadu State Board) chairman N. Tarachand Dugar and vice-chairman K.E. Ragunaathan spoke.

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