Context
Defaults under the Employees’ Provident Fund Organisation (EPFO) surged to an all -time high of ₹25,820.88 crore at the end of 2023-24, up 69.3% from ₹15,254.06 crore a year ago, showed official data.
Key findings from the report
- Total defaults are ₹5,318.42 crores, while ₹4,470.65 crores was the amount outstanding.
- An increase of 243.7% compared to 2022-23 arrears.
- ₹3,505.84 crore topped the charge of Telangana.
- Then Delhi, West Bengal, Sikkim, Jharkhand, and Rajasthan followed.
Employees’ Provident Fund Organisation (EPFO)
- Established by the Parliament of India in 1952, to provide social security for workers in India.
- Under the control of the Ministry of Labour and Employment, Government of India.
- Three major schemes of EPFO: EPFO Scheme 1952, Pension Scheme 1995 (EPS), and Insurance Scheme 1976 (EDLI).
- EPFO is the largest social security organization worldwide in terms of the number of beneficiaries covered and the volume of financial transactions.
- The employee serves for at least 10 years and retires at age 58.
- The Government of India pays 1.16% to an employee’s pension, and employees do not pay to the pension scheme.
- Employees and the employers contribute 12% of the basic salary, dearness allowance, and retaining allowance, if any, of the employee to the EPF.
