New Inspection Scheme to Target Firms Evading EPFO Compliance
Inspection scheme soon to flag firms dodging EPFO
The Economic TimesImage: The Economic Times
The Indian Ministry of Labour and Employment is developing an inspection scheme to identify establishments dodging compliance with the Employees' Provident Fund Organisation (EPFO). Many firms keep employee counts below 20 to avoid mandatory registration, depriving workers of essential social security benefits.
- 01The new scheme aims to identify firms evading EPFO compliance.
- 02Establishments with 20 or more employees must register with EPFO.
- 03Many firms manipulate employee counts to avoid mandatory coverage.
- 04Workers earning up to ₹15,000 monthly are mandatorily covered, but many firms do not comply.
- 05Data from GST and income tax will be used to identify non-compliant organizations.
Advertisement
In-Article Ad
The Ministry of Labour and Employment in India is set to launch an inspection scheme aimed at identifying establishments that are eligible for coverage under the Employees' Provident Fund Organisation (EPFO) but are evading compliance. Currently, establishments with 20 or more employees are required to register with the EPFO to provide provident fund, pension, and insurance benefits. However, many firms manipulate their declared employee count to remain below this threshold, thus avoiding the associated financial responsibilities. Additionally, while workers earning up to ₹15,000 (approximately $180 USD) per month are mandatorily covered under EPFO schemes, numerous organizations fail to extend coverage to those earning above this limit. The new inspection scheme will utilize data from Goods and Services Tax (GST), income tax, and other government departments to identify organizations that should be under EPFO coverage but are not complying.
Advertisement
In-Article Ad
This initiative could significantly increase social security coverage for workers, ensuring they receive benefits such as provident fund and pension.
Advertisement
In-Article Ad
Reader Poll
Do you think stricter compliance measures for EPFO are necessary?
Connecting to poll...
More about Employees' Provident Fund Organisation
Read the original article
Visit the source for the complete story.



