EPFO Alert: EPFO’s warning for crores of jobbers, those who ignore them will be hit hard
Contents News/Article Date: 13th December 2022
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952
Applicable to which State: All the establishments in the States with PF coverage
Type: Newspaper report asking for this important news to be shared on Alert due to fraudsters committing fraud on PF amounts
Pertains to: employers and employees
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In this earlier instance, it was reported about a fraud committed by a company in Pune by not paying the PF dues of the employees into the PF fund, and prima facie, it has been found that indeed PF payment has not been made to the EPFO and the case is being registered and further investigations are on.
In this instance, there has been a high alert in the newspapers reporting about the frauds committed by fraudsters by duping authorities and PF Members and swindling the PF amounts in large numbers.
This alert has been issued in the last few days after many frauds in the name of EPFO came to the fore.
Subject: EPFO Alert: EPFO’s warning for crores of jobbers, those who ignore them will be hit hard
For greater details, appended below is the complete news item
EPFO Alert: EPFO’s warning for crores of jobbers, those who ignore them will be hit hard
EPFO Alert: If you are also employed, then an alert has been issued for you by EPFO.
For this, it is not necessary that you are a government employee or work in a private company.
UNDER EPF – The contributions are payable on a maximum wage ceiling of Rs. 15000/- The employee can pay at a higher rate and in such case employer is not under any obligation to pay at much a higher rate. To pay contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such casesw, the employer has to pay administrative charges on the higher wages (wages above 15000/-). For an International Worker, a wage ceiling of 15000/- is not applicable.
UNDER EPS – Contribution is payable out of the employer’s share of PF and no contribution is payable by the employee. Pension contribution not to be paid: When an employee crosses 58 years of age and is in service (EPS membership ceases on completion of 58 years). When an EPS pensioner is drawing Reduced Pension and re-joins as an employee. In both cases, the Pension Contribution @8.33% is to be added to the Employer’s Share of PF. (Pension contribution is not to be diverted and total employer share goes to the PF). In case an employee, who is not an existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/- In these cases the pension contribution part will be added to the employee share,
EPF – in all other cases Pension Contribution is payable. A member joining after 50 years of age, if not a pensioner does not have a choice of not getting the Pension Contribution on grounds that he will not complete 10 years of eligible service. The social security cover is applicable till he/she is a member. For International workers, higher wage ceiling of 15000/- is not applicable from 11-09- 2010.
Being a member of EPFO means that your PF is deducted every month. An alert has been issued by the Employees’ Provident Fund Organization (EPFO) for the employees whose PF is deducted. This alert has been issued in the last few days after many frauds in the name of EPFO came to the fore.
EPFO does not ask for personal information
Such alerts have been issued by EPFO in the past as well, but in the last few days, the cases of fraud have increased rapidly. It was told by tweeting on behalf of EPFO that EPFO never asks for personal information like PAN, Aadhaar, UAN, bank account and OPT from its members through phone, social media, WhatsApp, etc.
Do not answer calls or WhatsApp calls
EPFO warned that EPFO never asks to deposit any kind of money through social media, WhatsApp, etc. for information related to any service or for anything else. In such a situation, all the members are advised not to answer any such call or WhatsApp call.
Employer’s share is deposited in two parts
12 percent of the basic salary and dearness allowance of EPFO members are deposited in the EPFO account. Similarly, 12 percent of the basic salary has to be paid by the employer. There are two parts to this 12 percent. Out of 12 percent, the first part of 8.33 percent goes to Employee Pension Account (EPS) and the remaining 3.67 percent amount goes to the EPF account. There is a provision for the employee to get this amount on retirement. But you can remove it if needed even during the job details, attached is the notification