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BMS urges govt to allow employers to submit EPF contribution on the basis of Aadhar only

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AgenciesThe Bharatiya Mazdoor Sangh, national trade union affiliated to RSS, has urged the government to allow employers to submit employees’ provident fund contribution on the basis of Aadhar number only without verification as the mismatch in data is resulting in delay in statutory contributions.

This, it said, may lead to misappropriation of funds deducted from the employees and may deprive EPFO beneficiaries of the legitimate dues.

“EPFO may please be directed to accept the contributions if the Aadhar number is furnished, without validating the parameters by giving sufficient time to the members to rectify the mismatch, to safeguard the interests of low wage earners,” BMS secretary general Binay Kumar Sinha said in his letter to labour minister Santosh Kumar Gangwar.

According to BMS, the section 142 of the Social Security Code which has been notified recently prevents employers from depositing the statutory dues of its employees if their details do not match with EPFO records.

“By delaying their contributions employees will be deprived of their statutory benefits like

PF, pension and deposit linked insurance as the non receipt of contribution will reflect as break in service while calculating pension. The employees will also be deprived of EDLI benefits as they may be treated out of service in the absence of statutory deposits,” BMS said in its letter dated June 12.

“There is a chance of misappropriation of funds deducted from employees as their share of contribution is being held up. By enabling EPFO to allow statutory deposits without validation, the government will safeguard the interests of low wage earners,” BMS said.

BMS has argued that the government has allowed the Employees State Insurance Corporation to enrol workers and take contributions without mandating Aadhar and hence the same should be notified for EPFO.

Under the EPF&MP Act, the employers have to contribute 24% (12% each of employer and the employee) to the provident fund kitty of the employee which makes the worker eligible for pension and provident fund after retirement.

The Act is applicable to establishments employing 20 or more workers and is eligible for workers earning less than Rs 15,000 a month.

Source: indiatimes.com

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