The private sector’s defaults on provident fund deposits with the Employees’ Provident Fund Organisation (EPFO) have increased by nearly 10% over the last five years, resulting in arrears exceeding Rs 15,000 crore in 2022-23. The EPFO’s draft annual report reveals that private sector defaults accounted for 83.17% of total defaults in 2022-23. Despite an 8.97% cumulative increase over five years, the three years of Covid-19 registered a 5.57% increase. The EPFO operates three schemes, with establishments required to deposit 24% of employees’ salaries. The report indicates a substantial portion of arrears under the ‘not immediately realisable’ category.
Private Sector Defaults on Provident Fund Rise by 10% in Five Years: EPFO Report
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