Question : Expansion of EPF Ambit

(a)whether the Government proposes to bring in more employees from Public and Private sector as well as unorganized sector into ambit of EPF;
(b)if so, the details thereof and the steps taken/being taken by the Government in this regard;
(c)whether all the EPF accounts have been made online;
(d)if not, the reasons therefor and the time by which all EPF accounts are likely to be made online;
(e)the amount lying unclaimed in EPF accounts for more than 5 years; and
(f)the steps taken/being taken by the Government to settle the unclaimed amount?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) & (b): Yes, Madam. A proposal for comprehensive amendment to the Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952 is under consideration of the Government which, inter alia, includes reducing threshold limit for coverage from 20 to 10 employees under the Act. However, at present there is no proposal to bring unorganized sector workers under the ambit of the EPF & MP Act, 1952.
(c): A member can view his provident fund balance and status of his claim through online mode.
Contd..2/-



:: 2 ::

(d): Does not arise in view of reply to part (c) of the Question above.

(e): There is no unclaimed amount 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 contribution have not been received for 36 months continuously. All such Inoperative Accounts have, however, definite claimants.
As per Annual Accounts of Employees’ Provident Fund Organisation (EPFO), as on 31.03.2015, an amount of Rs. 35,531.39 crore has been classified as inoperative accounts. The details relating to number of inoperative accounts is not maintained separately.

(f): The following initiatives have been taken to settle the inoperative accounts:-
(i) EPFO has launched a portal namely ‘Inoperative Accounts Online Help Desk’ to assist the members to identify their inoperative accounts.
(ii) Instructions have been issued to reconcile the inoperative accounts and further identify the beneficiaries through employers.
(iii) EPFO has allotted Universal Account Number (UAN) which will enable to identify the members without intermediation of the employers.
(iv) Awareness campaigns have been undertaken through the electronic as well as print media from time to time to educate the members to transfer or withdraw their Provident Fund (PF) accumulations.

As a result of the above steps, the total amount paid to the beneficiaries from inoperative accounts has shown an increase in the last few years. The total amount paid out of inoperative accounts during the last four years includes as under:-
Year Amount settled
(Rs. in crores)
2011-12 955.51
2012-13 2890.40
2013-14 4316.71
2014-15 6491.01
******