Regional offices of EPFO (Employees’ Provident Fund Organization) have decided to act tough against such commercial organizations that are violating the Provident Fund (PF) Act. A massive campaign across India covering many textile and apparel hubs like Surat, Gurgaon, etc. has been started for the employee’s enrolment, which will run from January 1 to March 31, under the EPF Act and scheme. There is a huge scope of EPF enrolment in textile sector as well. The average wage paid in this sector is about Rs. 15,000, which is enough to enroll the employees under EPF. The EPF & MP Act 1952 applies to any notified establishment employing 20 or more employees.
Gurgaon (Haryana), which has numerous apparel units, too has many such workers who are unable to get the benefit of EPF. Surat, India’s largest man-made fabric (MMF) hub, is also moving towards increasing the numbers of employees’ enrolment under the EPF. As per the EPFO record, the textile sector of the city has less than 60,000 workers against the total workforce of 10 lakh covered under EPF.
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Under the scheme, any employer can make a declaration regarding enrolment of its employees from April 1, 2009 to December 31, 2016. The employer is liable to pay only the employer’s share in EPF along with interest at 12%. For such employees whose EPF was not deducted by the employers, are not required to pay employees’ share. The penalty for late payment which usually ranges between 5% and 100% is reduced to a nominal Re. 1 per annum in respect of such employees and the administrative charges have also been abolished.
