VVR-IAS Exam Preparation Coaching in Delhi & Hyderabad VVR - IAS Exam Preparation

UPSC/IAS Current Affairs:(Economic and Social Development, Security)

GOVT IS CONSIDERING A PROPOSAL TO REDUCE THRESHOLD LIMIT FOR COVERAGE OF FIRMS UNDER THE EPF ACT FROM 20 TO 10 PERSONS:

GOVT IS CONSIDERING A PROPOSAL TO REDUCE THRESHOLD LIMIT FOR COVERAGE OF FIRMS UNDER THE EPF ACT FROM 20 TO 10 PERSONS

At present, all those firms employing 20 or more workers are covered by the retirement fund body Employees’ Provident Fund Organisation (EPFO) for providing a social security net.

What is EPFO ?

  • The Employees’ Provident Fund Organisation (abbreviated to EPFO), is a statutory body of the Government of India under theMinistry of Labour and Employment.
  • The EPFO’s apex decision making body is the Central Board of Trustees (CBT).
  • It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme.

The Board operates three schemes viz. :

  • The Employees’ Provident Funds Scheme 1952 (EPF)
  • The Employees’ Pension Scheme 1995 (EPS)
  • The Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)
  • It is one of the largest social security organisations in the world in terms of the number of covered beneficiaries (clientele) and the volume of financial transactions undertaken.

Currently on organized sector are looked after by EPFO:

On 16.10.2014, the Hon’ble Prime Minister of India formally launched the Universal Account Number (UAN) for facilitating portability of member account. The Hon’ble Prime Minister also inaugurated the Shram Sewa Portal on 16.10.2014. The Shram Sewa Portal intends to make the process of inspection of establishments rule based, periodic and by minimizing the use of discretion of inspecting officers.

What is UAN?

  • A Universal Account Number (UAN) will be generated for each of the PF member by EPFO.
  • The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments.
  • The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number.
  • This will help the member to view details of all the Member Identification Numbers (Member Id) linked to it.
  • If a member is already allotted Universal Account Number (UAN) then he/she is required to provide the same on joining new establishment to enable the employer to inturn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number(UAN)