(MENAFN- Live Mint) A total of 27 companies have surrendered their exemptions, adding ₹1688.82 crore and 30,000 employees to the provident fund under the Employees' Provident Fund Organisation (EPFO) in the last two years, as per a report by news agency ANI on Sunday, July 14.
The Ministry of Labour and Employment released a statement on Sunday, saying that due to the improved services, more establishments are surrendering their exemptions granted by the EPFO . These companies prefer that the EPFO manage their employee's provident fund (PF ) allowing them to focus on their core business.
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Improvements in areas like faster claims, higher settlement rates, a strong monitoring system, and ease of engagement are making EPFO a better choice for establishments.
Last year, EPFO took multiple steps under the ministry to streamline the compliance process for establishments under the Employees' Provident Fund Act, according to the report. This involves publishing Standard Operating Procedures (SOPs) and manuals highlighting the process for the exempted establishments, the newswire agency reported.
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The major step towards digitization is a new software and portal which will be launched soon to simplify the process of surrendering the exemptions, said the Ministry of Labour and Employment, reported ANI.
Companies which wish to manage the PF collection of their employees on their own need to seek exemption under Section 17 of the EPF Act. This gives them the permit to manage the PF Trust without making regulatory contributions.
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There are a total of 1,002 establishments managing ₹3.2 lakh crore for its 31,20,323 or 31.2 lakh members, as of the end of financial year 2022-2023.
These companies are regulated and have the mandate to provide benefits to their subscribers that are on par with the EPFO standards. The compliance with the conditions of exemption according to what is marked in the EPF Act.
The rising focus of EPFO on its stakeholders, along with funds generating steady returns for the members is adding to the rising trend of surrendering exemptions.
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