Retirement fund body EPFO on Thursday formally launched the Employees Enrolment Campaign, 2017, to encourage firms to enroll their employees under its schemes at nominal damages of Rupee one per annum.
Under the scheme, the employee s share of contribution, if declared by the employer as not deducted, shall stand waived, the Employees’ Provident Fund Organisation (EPFO) said in statement.
According to the statement, the damages to be paid by the employer in respect of the employees for whom declaration has been made under this campaign shall be at the rate of Rupee one per annum.
Besides, no administrative charges shall be collected from the employer in respect of the contribution made under the declaration.
Under the scheme, a declaration can be made under the campaign for the period till March 31, 2017, for which no inquiry under section 7A has been initiated.
The EPFO’s apex decision making body -- the Central Board Trustees -- at its meeting held on December 19, 2016, decided to launch a special campaign from January 1, 2017 to March 31, 2017 to enroll the eligible workers who were left out, in bringing them under its social security umbrella.
The campaign seeks to enroll new establishments and employees with or without past service. The Central Government has accepted the recommendation of the Board and has since notified the scheme, it said. The campaign aims to encourage employers to voluntarily come forward and declare details of all such employees who were entitled for membership between April 1, 2009 and December 31, 2016 under EPF & MP Act 1952, but could not be enrolled.
The enrolment drive offers a limited time window to employers to bring all eligible workers under social security net.According to the provisions of Employees Provident Funds and Miscellaneous Provisions Act, 1952, the employer of an establishment covered under the Act is required to enroll all employees drawing basic wages of up to Rs 15,000 per month.
The establishments that enroll new employees under the campaign will be eligible to draw benefits available under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) as well as Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRY). The government pays 8.33 per cent contribution of employers share to the Employees Pension Scheme (EPS) in respect of new employees having Universal Account Number.
For textile (apparel) sector, the government additionally pays 3.67 per cent towards EPF contribution for new employees required to be paid by the employers.