EPFO Membership and Contributions Surge Amid Economic Growth
New Delhi, November 10 - The Employees’ Provident Fund Organisation (EPFO) has reported a significant increase in its contributing members, rising by 7.6% to 7.37 crore in the fiscal year 2023-24, up from 6.85 crore the previous year, according to a Labour Ministry statement released on Sunday. This growth is mirrored by a 6.6% increase in the number of establishments contributing to the EPFO, now totaling 7.66 lakh.
The surge in membership and contributions underscores a robust expansion in employment and business activities within India's organized sector, enhancing the living standards of numerous workers.
Financial and Operational Highlights:- Arrear Dues Collection: The EPFO noted a 55.4% increase in the collection of arrear dues, reaching Rs 5,268 crore in 2023-24 compared to Rs 3,390 crore the previous year. - Claim Settlements: There was a 7.8% rise in claims settled, with 4.45 crore claims processed this year against 412.86 lakh last year. - Annual Report and Accounts: The EPFO's Annual Report for 2023-24 was reviewed in an Executive Committee meeting, chaired by Sumita Dawra, Secretary (Labour & Employment). The committee also cleared the backlog of annual accounts for 2021-22 and 2022-23 and directed that the 2023-24 accounts be prepared and presented promptly.
Strategic Initiatives:- Professional Auditing: The hiring of two Chartered Accountant firms was approved to streamline the preparation of financial statements, aiming to enhance professionalism and efficiency in financial reporting. - Compassionate Policy: A draft for the New Compassionate Appointment Policy, 2024, was considered to provide relief to dependents of deceased EPFO employees, particularly those affected during the Covid-19 period.
The meeting also tackled various proposals aimed at improving governance through IT, administrative, and financial enhancements. Discussions included relaxing auto-settlement criteria for claims, streamlining processes for easier claim processing, and upgrading IT systems to support centralised pension payments.
These reforms are part of a broader agenda to modernize the EPFO's operations, ensuring better service delivery and financial management, which in turn supports the organization's members and the broader economic landscape.