EPFO Sees Significant Growth in Membership and Contributions in 2023-24
New Delhi, November 10, 2023 - The Employees’ Provident Fund Organisation (EPFO) has reported a substantial increase in its membership and contributions for the fiscal year 2023-24, according to a statement from the Labour Ministry issued on Sunday. The number of contributing members has surged by 7.6% to 7.37 crore from 6.85 crore in the previous year. Concurrently, the number of establishments contributing to EPFO has grown by 6.6%, now standing at 7.66 lakh.
This growth is indicative of a robust expansion in employment and business establishments within India's organized sector, thereby enhancing the living standards of numerous workers. The EPFO's financial health also saw a significant boost, with arrear dues collection increasing by 55.4% to Rs 5,268 crore, up from Rs 3,390 crore last year.
The organization also reported a 7.8% rise in the number of claims settled, moving from 4.12 crore to 4.45 crore claims. These figures were part of the Annual Report for 2023-24, which was reviewed in the recent Executive Committee meeting chaired by Sumita Dawra, Secretary (Labour & Employment).
In efforts to streamline financial reporting, the Executive Committee has recommended the adoption of the report to the Central Board and has cleared the backlog of annual accounts for the years 2021-22 and 2022-23. Furthermore, directives were issued to ensure the timely preparation and presentation of the 2023-24 accounts.
The Committee approved the engagement of two Chartered Accountant firms to aid in the preparation of Annual Financial Statements and to automate the financial statement preparation process. This move is expected to bring professionalism and modern practices to EPFO’s financial management.
In a compassionate move, the draft New Compassionate Appointment Policy, 2024, was considered to provide relief to the families of deceased EPFO employees, many of whom passed during the Covid-19 period.
The meeting also covered various proposals concerning IT enhancements, administrative improvements, and financial strategies to promote good governance within EPFO. Discussions on reforms included relaxing criteria for auto-settlement of claims and streamlining member claim processes. Plans for centralizing pension payments and upgrading IT infrastructure were also outlined with specific timelines for completion.
The EPFO's efforts reflect a commitment to enhancing efficiency, transparency, and member welfare, signaling a positive trajectory for India's social security framework.