PF - Total no of accounts 17 cr, contribution only from 3.7 cr
By TIOL News Service
NEW DELHI, DEC 05, 2016: The Minister of State (IC) for Labour and Employment, Mr Bandaru Dattatreya, responded to a question in Lok Sabha clarifying the reason behind discrepancy between provident fund accounts and contribution. As per the Annual Report for 2015-16, total number of Employees' Provident Fund (EPF) member accounts as on 31.03.2016 is 17.14 crore. However, contributions have been received only in respect of 3.76 crore members during the year 2015-16. Reasons for this gap are primarily two. First, the members after switching over from one covered establishment to another, especially, those employed in seasonal establishments and contractor workers, do not withdraw or get their balance transferred to the new Provident Fund (PF) account resulting in multiple accounts. Secondly, it is not statutorily mandated for members to withdraw the accumulations after they are no longer in employment.
Further, it is clarified that there is no dormant account 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 contributions have not been received for 36 months continuously. All such Inoperative Accounts have, however, definite claimants.
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