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

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more