Question : Status of EPFO Accounts of Labourers

(a)whether there has been a decline in the operative status of EPFO accounts of the labourers during the last one year;
(b)if so, the state-wise number and details of the accounts which have become inoperative;
(c)the number of labourers to whom the Government has provided relief through EPFO so far; and
(d)the types and details of relief provided?

Answer given by the minister

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)
(a): No, Sir.

(b): A statement showing the state-wise number of inoperative accounts as on 31.03.2020 is at Annexure.

(c) & (d): During the Covid-19 pandemic period, under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) and Atmanirbhar Bharat, Government of India contributed both 12% employees’ share and 12% employers’ share under Employees’ Provident Fund (EPF), totaling 24% for the wage months of March to August, 2020, for all the establishments having up to 100 employees with 90% of such employees earning less than Rs.15,000/- monthly wage. Benefits amounting to Rs. 2567.22 Crore has been credited in the Aadhaar seeded UANs of 38.84 eligible EPF members and 2.63 Lakh eligible establishments.
Contd..2/-

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The statutory rate of contributions was reduced from 12% of wages to 10% of wages for three wage months from May, 2020 to July, 2020, as specified vide notification number S.O. 1513(E) dated the 18th May, 2020. The details of establishments and members availing benefits of reduced rates are as under:

Month No. of Establishments No of EPF members
May, 2020 124093 157.83 Lakh
June, 2020 138773 175.44 Lakh
July, 2020 141045 180.93 Lakh

Further, the Central Government inserted sub-paragraph (3) under paragraph 68L of the Employees’ Provident Funds Scheme, 1952 on 28th March 2020 for COVID Advance. Under this provision non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member''s credit in the EPF account, whichever is less, is provided to beneficiaries.

The details of advances as on 31.01.2021 are as follows:

Type of advance/withdrawals No. of claims settled in favour of members Amount
(Rs. In crores)
Unemployment Advance 42,201 141.96
Covid related advance 60,88,980 15,255.95

During the Covid-19 recovery phase, the Central Government has launched the Atmanirbhar Bharat Rozgar Yojana (ABRY) to incentivize employment generation in Employees’ Provident Fund Organisation (EPFO) registered establishments by payment of both employees’ and employers’ contributions i.e. 24% of wages in respect of new employees in establishments employing up to 1000 employees and employees EPF contributions i.e. 12% of wages in respect of new employees in establishments employing more than 1000 employees. As on 28.01.2021, the total number of beneficiaries (new employees) is 4.69 lakhs.

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