The Committee note that the Employees’ Provident Fund Organisation (EPFO) under the ambit of Employees’ Provident Fund (EPF) and Miscellaneous Provisions Act, 1952 seeks to provide for the institution of Provident Funds, Pension Funds and Deposit Linked Insurance Fund for Employees in Factories and other Establishments with the Ministry of Labour and Employment contributing 1.16% Government share towards Employee Pension Scheme, 1995. The Committee find that as on 10.02.2021, the total number of Registered Establishments stand at 15,52,186 (3477 Exempted and 15,48,709 Un-exempted); total members stand at 25,61,78,223 (1,38,04,614 Exempted and 15,48,709 Unexempted); contributing members under EPS and EPF stand at 5,71,86,202 (43,06,239 Exempted and 5,28,79,963 Un-exempted) and contributory members under EPS stand at 5,61,02,868 (43,13,835 Exempted and 5,17,89,033 Unexempted).
Keeping in view the large task for the EPFO as exuded by the above data, the Committee are happy to find that EPFO’s work has been considerably eased with 99% of EPFO collections made through internet banking mode, thereby making the system safer, seamless, secure, more effective and also in line with the Digital India Initiative. Also, EPFO’s multiple banking system facility through 13 banks has contributed to increasing flexibility and convenience bringing about positive impact on the collection and disbursals of dues in EPFO.
The Committee appreciate this laudable achievement of the EPFO and trust that systemic improvements and requisite value additions are made from time to time. The Committee would like to be apprised of the developments in this regard. 19. The Committee, however, note with concern that there is a sharp increase in grievances pending at the beginning of the year 2020-21 (as on 31.12.2021) with percentage disposal of the grievances also being the lowest at 96.82% in the year 2020-21 as compared to 99.19% and 97.78% for the years 2018-19 and 2019-20. The Committee observe that proactive measures need to be taken up speedily by the Ministry to bring down the number of unsettled grievances which stood at 30411 till the end of 2020.
The Committee are of the considered opinion that the Government should specifically look into the grievances pertaining to employers failure to deposit PF contribution deducted from the wages of the employee in the PF Accounts and simultaneously defaulting on their own contribution as well. A conscious decision leading to payment to workers who are yet to receive the statutory benefits of PF and ESI since long due to default of the employees needs to be urgently taken up for redressal.
With specific reference to EPS 95, the Committee note that the minimum pension which was announced in 2014 and continues to be applicable till date is grossly inadequate. Even this meager amount of Rs.1,000/- is reportedly not being given to many pensioners owing to various reasons and pension amounts as low as Rs.460/- are being disbursed. Therefore, demands and representations have been made for raising the monthly pension to a minimum of Rs.3,000/- or even a better amount ranging upto Rs.9,000/- per month.
A major problem with EPS 95, as brought to the notice of the Committee is that there is no link between an employees saving/contribution per se and the actual pension amount as all contributions are pooled together in one account and the pension amount disbursed on the basis of the last salary drawn by the employee. Also, reportedly, no limits exist either on the amount of withdrawals or the time frame for making withdrawals, and yet the account holder continues to be eligible for pension. EPS 95, being a ‘Defined Benefit’ scheme which guarantees a minimum pension has inherent limitations, which, as per the Ministry would be a burden on the exchequer unless appropriate changes are made in the administration of the scheme.
An increase in the pension amount to Rs.3,000/- would, as pointed out, entail an increased expenditure of Rs.15,000 crore thereby taking the total impact on the exchequer to Rs.25,000 crore. The Committee in this regard, desire that earnest efforts be made for addressing the drawbacks or limitations of the scheme, and at the same time ensure that the worker’s interest are protected by way of ensuring a reasonable monthly pension of at least Rs.3,000/- under EPS 95.The Committee would like to be apprised of the developments in this regard.
Click Here to Download Complete 107 Pages Report of STANDING COMMITTEE ON LABOUR
Thank you so much sir
ReplyDelete