Currently, EPFO only sends messages to employees whose contributions are credited into their EPF accounts
The next time your employer fails to deposit your contribution to the Employees’ Provident Fund Organisation (EPFO), you would get to know.
EPFO will now inform employees whose contributions have not been deposited by the employer for a given month in due time. Currently, EPFO only sends messages to employees whose contributions are credited into their EPF accounts. “EPFO has so far been intimating its members by way of SMS on credit of their respective monthly contribution into their accounts," said an EPFO press statement.
Every month, a salaried individual contributes 12% of her salary to the EPF account and the employer matches the contribution. The contributions then compound at a rate declared every year.
“Employers have to credit the contributions with the EPF account by the 15th of every month for the previous month or there is a penalty and interest levied. Employers have to fill a challan and upload contributions and this is now online, leaving little room for employers to default. Compliance has improved to a great extent," said Rituparna Chakraborty, executive vice-president and co-founder, Teamlease Services.
EPFO is going to intimate even those employees whose contributions are not deposited by the employer. “It has been decided that an intimation by way of SMS or email shall be sent to members in respect of whom contribution has not been deposited by the employer with EPFO for a given month in due time," said the statement.
This intimation will be applicable to those who have registered their mobile number or email ID in their Universal Account Number (UAN). However, according to experts, SMS updates on credit are very erratic at present.
V.P. Joy, central PF commissioner, EPFO, said that’s because EPFO wants to focus on low paid employees as others can access updates through other means such as the Umang app or the missed call facility, where you give a missed call on 011-22901406 with your registered mobile number for an update. Read bit.ly/2HQgyZb on how to use the app.
While this will enable employees to follow up with their employers, EPFO is also taking steps to pull up defaulting employers who don’t deposit contributions on time. In an earlier interview with Mint (bit.ly/2JwZbdc), Joy said by centralising the EPFO system and by putting in place a default management framework, the authority has been able to speed up contributions.