Employees’ Provident Fund Organisation (EPFO)

• Established
  • Established by the Parliament of India in 1952, to provide social security for workers in India.
• Ministry
  • 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).
• Largest Social Security Organization
  • EPFO is the largest social security organization worldwide in terms of the number of beneficiaries covered and the volume of financial transactions.
• Features
  • The employee serves for at least 10 years and retires at age 58.
  • The pension structure was available at the time, and the maximum pensionable salary is Rs 5,000 per month at the introduction of EPS.
  • 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.

Organization Structure of EPFO

• EPFO is administered by the Central Board of Trustees.
• The organization is divided into zones, which are headed by an Additional Central Provident Fund Commissioner.
• There are 10 zones throughout the country, with one or more than one regional offices headed by Regional Provident Fund Commissioners.
• Districts have a district office.

EPFO UAN (Universal Account Number)

• A 12-digit number assigned to an employee working in an organization.
• Benefits
  • Include reduction of confusion of multiple IDs, easy transfer and withdrawal of claims, online-pass book, SMS services, online KYC update, and checking EPF balance online.

Social Security Code 2020

• Social Security
  • Provides social security to any establishment as notified by the central government.
• Amends definitions of employees
  • Amends definitions of employees, inter-state migrant workers, platform workers, audio-visual productions, and building or other construction work.
• The 2020 Bill reduces the gratuity period from five years to three years for working journalists.