Skip to main content

EPFO to send you SMS update if employer fails to deposit contribution

By
EPFO to send you SMS update if employer fails to deposit contribution

Currently, EPFO only sends messages to employees whose contributions are credited into their EPF accounts

The next time your employer fails to deposit your contribution to the Employees’ Provident Fund Organisation (EPFO), you would get to know.

EPFO will now inform employees whose contributions have not been deposited by the employer for a given month in due time. Currently, EPFO only sends messages to employees whose contributions are credited into their EPF accounts. “EPFO has so far been intimating its members by way of SMS on credit of their respective monthly contribution into their accounts,” said an EPFO press statement

What is EPF?

Every month, a salaried individual contributes 12% of her salary to the EPF account and the employer matches the contribution. The contributions then compound at a rate declared every year. “Employers have to credit the contributions with the EPF account by the 15th of every month for the previous month or there is a penalty and interest levied. Employers have to fill a challan and upload contributions and this is now online, leaving little room for employers to default. Compliance has improved to a great extent,” said Rituparna Chakraborty, executive vice-president and co-founder, Teamlease Services.

What’s new?

EPFO is going to intimate even those employees whose contributions are not deposited by the employer. “It has been decided that an intimation by way of SMS or email shall be sent to members in respect of whom contribution has not been deposited by the employer with EPFO for a given month in due time,” said the statement.

This intimation will be applicable to those who have registered their mobile number or email ID in their Universal Account Number (UAN). However, according to experts, SMS updates on credit are very erratic at present.V.P. Joy, central PF commissioner, EPFO, said that’s because EPFO wants to focus on low paid employees as others can access updates through other means such as the Umang app or the missed call facility, where you give a missed call on 011-22901406 with your registered mobile number for an update. Read bit.ly/2HQgyZb on how to use the app.

What this means

While this will enable employees to follow up with their employers, EPFO is also taking steps to pull up defaulting employers who don’t deposit contributions on time. In an earlier interview with Mint (bit.ly/2JwZbdc), Joy said by centralising the EPFO system and by putting in place a default management framework, the authority has been able to speed up contributions.

The Mint, New Delhi, 30th April 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more