A major portion of eastern and north eastern regional defaults in remittances to the provident fund is stuck in litigation.
V Vijaykumar, additional commissioner (West Bengal, Jharkhand, Sikkim, North Eastern States, Anadaman and Nicobar) of Employees’ Provident Fund Organisatiion told reporters here on Monday that out of a total default of about Rs 550 crore, around Rs 450 crore worth of default money were involved in litigations in various courts of law.
After an interactive session at the Indian Chamber of Commerce, he said, the EPFO was trying to get things out of this jam through legal means, Kumar said. The total default figure for the country is reported to be over Rs 3,000 crore.
Under the Employees’ Provident Fund Act, 1952, an employer employing 20 or more employees is obligated to deduct and deposit contributions to the fund every month within 15 days.
“We have not reached the level where we can ensure voluntary compliance from all establishments. The default has gone up. The default is very high in this region. The recovery cases are pending in High Court and also tribunals,” he said.
Vijayakumar also said that the eastern region saw settlement of over 8 lakh cases in 2013-14 and Rs 2,400 crore was disbursed from the fund through withdrawals and advances. The region has around 4 lakh pensioners and around Rs 197 crore was distributed towards pension payment.
EPFO is also attempting to widen its enrolment for greater coverage of employees under the provident fund and pension scheme.
Vijayakumar expressed concern over the low level of enrolment to the scheme in the region.
“Our area of concern is compliance. I am not happy with the 72,000 establishments covered in the region. There is a lot of potential to improve coverage,” he said. The eastern region has around 80 lakh employees enrolled under the scheme. Jute mills and construction and beedi workers are among the identified segment for coverage extension.
A parliamentary committee has identified 32,000 jute workers for enrolment in the scheme.
He expressed hope that following the ongoing general elections, the new government would implement the proposals of minimum monthly pension of Rs 1,000 which would cost the exchequer around Rs 1,200 crore and raising the minimum monthly wage limit from Rs 6,500 to Rs 15,000.