EPFO Membership and Contributions Surge Amidst Economic Growth
New Delhi, November 10 - The Employees' Provident Fund Organisation (EPFO) has reported a significant increase in both membership and contributions for the fiscal year 2023-24, reflecting robust growth in India's organized sector. According to a Labour Ministry statement released on Sunday, the number of contributing members has risen by 7.6% to 7.37 crore from 6.85 crore in the previous year. Additionally, the number of establishments contributing to EPFO has increased by 6.6% to 7.66 lakh.
This growth is indicative of a broader expansion in employment and business activities within the organized sector, enhancing the living standards of many workers across the country.
Financial Performance and Claims Settlement
The EPFO also noted a substantial 55.4% increase in the realization of arrear dues, amounting to Rs 5,268 crore in 2023-24, up from Rs 3,390 crore the previous year. The number of claims settled saw a rise of 7.8%, with 4.45 crore claims processed compared to 4.12 crore last year.
These figures were part of the Annual Report for 2023-24, which was reviewed during the Executive Committee meeting chaired by Sumita Dawra, Secretary (Labour & Employment). The committee recommended the adoption of the report by the Central Board.
Audit and Financial Management Reforms
The meeting also addressed the backlog of annual accounts, with the Audited Annual Accounts for 2021-22 and 2022-23 being presented for consideration. The committee directed that the audited accounts for 2023-24 be prepared and presented on time. To enhance the financial reporting process, the hiring of two Chartered Accountant firms was approved to automate and professionalize the preparation of financial statements.
Support for Dependents and Governance Enhancements
In a compassionate move, the Executive Committee considered the draft New Compassionate Appointment Policy, 2024, aimed at providing support to the dependents of deceased EPFO employees, particularly those who lost their lives during the Covid-19 period.
Discussions also covered various proposals to improve governance through advancements in information technology, administrative, financial, and other related aspects. Reforms were introduced to simplify the claims process, with relaxations in criteria for auto-settlement of claims and improvements in IT infrastructure to streamline operations.
Looking Forward
The EPFO's reform agenda was thoroughly discussed, with a focus on centralizing pension payments and upgrading IT systems to ensure efficiency and transparency. The commitment to timely and accurate financial reporting, along with the welfare of its members, underscores EPFO's dedication to fostering a robust social security framework in India.