The EPFO or Employees Provident Fund Organization is a statutory body of Indian Government which takes care of Employees Provident Fund Scheme. This Organization comes under Labour and Employment Ministry. The main function of this organization is to take care of Provident Fund Scheme, Pension Scheme and an Insurance Scheme. There is an obligatory contribution of employer and employee in EPF Scheme for the sake of employees. EPF India takes care of this contribution to ensure the financial security of all employees. EPFO provides social security to largest number of members of any organization. It has the most number of employees as member. Because of this reason they have a lot of financial transactions.
According to estimate on May 1st 2013 the EPFO has total assets of more than Rs 5 lakh crore. The Organization is improving its working and technique day by day to ensure the well-being of every employee and their families.
State provides guidelines and directions for the working of Employees Provident Fund Organization. Every employee has a compulsion to join EPF scheme that falls under purview of the statute. The main object of organization is to take care of employee’s investment and make sure that they get best return for their savings. They also confirm the security of their savings. EPFO confirms that the contribution of both employer and employee gives best protection cover to employees and they get highest safe returns which no other insurance company or investment can give. Other firms can give higher returns but they do not provide security to their deposits.
On 4th March 1952 EPFO came into existence when Employees’ Provident Funds and Miscellaneous Provisions Act were passed. Afterwards a lot of additions and alterations were made to improve the financial stability of employees. Union Labour Minister is the chairperson of board of Employees Provident Fund Organization.
EPFO has been given power to implement Provident Funds and Miscellaneous Provisions Act. It acts as a service provider to all the beneficiaries of EPF all over India. The EPFO Commissioner can go through records of firms to confirm the liability of employer and take action accordingly. For proper running of EPF India, it is organized at state level and Additional Central Provident Fund Commissioner is head of every state. Later state is divided into regions where Regional P.F. Commissioners are responsible for its working. Next level of division is Sub Region which is under Regional P.F. Commissioner and lastly there are district offices where Enforcement Officer is the head. The Enforcement Officer is responsible for all working of the establishments in the district and the complaints and grievances of the region. Thus for proper functioning EPFO offices has been established at district, Regional and state level.
The organization makes provisions so that the people get education and job within their capacity. It is also responsible for providing relief to sick, old age and unemployed. They make sure to provide basic healthcare needs to employees.
Parliament of India implemented Employees’ Provident Fund and Miscellaneous Provisions Act in 1952. After various legislative updates and changes for the betterment of employees now there are three Schemes in force.
Employees’ Provident Fund Scheme, 1952
Employees’ Deposit Linked Insurance Scheme, 1976
Employees’ Pension Scheme, 1995 (replacing the Employees’ Family Pension Scheme, 1971)
EPFO has more than 2 Lac people as staff at all levels. Recruitment at all levels is through Union Public Service Commission.
According to Employees’ Provident Fund Scheme every establishment having 20 or more employees has to get itself registered with Employees’ Provident Fund organization India. Every employee of the same establishment has to register in EPF scheme. Both the employer and employee have to contribute 12% individually of basic monthly salary towards compulsory Provident Fund. Hence 24% of basic monthly salary is deposited with EPFO. These funds are used by EPFO to provide Accidental death Insurance and Pension on retirement to the employee.
The Head/ Central Office of EPFO is situated in New Delhi at 14, Bhikaji Cama Place, New Delhi 110066. The Employees’ Provident Fund Appellate Tribunal in Delhi is at Scope Tower, Laxmi Nagar, New Delhi, which is headed by Presiding Officer who is a member of Judicial Service. Here the orders of the EPF Department can be appealed. In Short EPF India is a government organization which takes care of all the beneficiaries covered under it all through the country.