EPFO Reports 6.6% Employer Growth, 7.6% Member Rise in FY24

New Delhi, Nov 11 (PTI) Retirement fund body EPFO has seen a 6.6 per cent year-on-year rise in contributing employers to 7.66 lakh while recording 7.6 per cent growth in members to 7.37 crore in 2023-24, a labour ministry statement stated.

According to a statement issued on Sunday, the labour secretary and Chairperson of the Executive Committee, Central Board, Employees' Provident Fund Organization (EPFO), presided over the 109th Meeting of the Executive Committee on November 8, 2024, at EPFO Head Office in the national capital.

This was the first meeting of the Executive Committee after the re-constitution of the panel on September 27, 2024.

The Executive Committee is a statutory panel under the EPF Act 1952, with the mandate of rendering assistance to the Central Board of Trustees, EPFO in the discharge of its functions.

The Annual Report for the year 2023-24 on the functioning of EPFO was also considered by the Executive Committee.

As per the statement, while deliberating on the Annual Report, the Committee noted the steady growth in key performance parameters of the organisation.

The number of contributing establishments grew 6.6 per cent (7.66 lakhs from 7.18 lakhs) while the number of contributing members increased 7.6 per cent (7.37 crore from 6.85 crore) over the previous year, it added.

The organisation also saw a 55.4 per cent rise in realising arrear dues (Rs 5,268 crore from Rs 3,390 crore) over the previous year.

There was a 7.8 per cent increase in the number of claims settled over the previous year (4.45 crore from 4.13 crore).

The Executive Committee recommended the report for adoption to the Central Board.

In another significant decision, the Executive Committee also considered the draft New Compassionate Appointment Policy, 2024, to bring relief to the dependents and wards of many employees of EPFO, who had unfortunately died in harness, many of which had occurred during the Covid pandemic period.

Further, the Executive Committee deliberated several other proposals related to information technology, administrative, financial, and related aspects for good governance in EPFO.

The reform agenda of EPFO was discussed at length. It was appreciated that EPFO has relaxed the criteria for auto-settlement of claims for the ceiling as well as the categories of admissible grounds for a claim. Other reforms related to streamlining processes, making it easier for members to get their claims processed were also taken up.

Steps to enable centralised pension payment as well as the interventions in improving IT-related software and hardware were discussed, and timelines for completion of overhaul of the IT system were noted.

It was appreciated that updated software for field applications that had been put in place across the country by EPFO had improved the speed, yet the importance of close follow-up at the field level was emphasised. This will ensure improvement is felt across all offices in the country, as per the statement.

The regular and close review of EPFO offices is to remain a priority.

It was further decided that the occasion of the 72nd Foundation Day of EPFO on 15 November 2024 will be used as an opportunity to push the reform agenda ahead through the employees of EPFO, who work at different levels across the country.

The Executive Committee decided to meet monthly for the next few months to regularly monitor and review the reform agenda, including the modernisation project and other important initiatives that are underway at present.

The aim is to bring greater ease of living for the citizens through systemic improvements.

The Audited Annual Accounts of EPFO for the years 2021-22 and 2022-23 were placed before the Committee for consideration of a recommendation to the Board, thus ensuring that the backlog of annual accounts was cleared.

The committee gave directions that the audited accounts for the year 2023-24 should be prepared and presented in time.

As an important initiative, the Executive Committee approved the hiring of two Chartered Accountant firms for the preparation of Annual Financial Statements of EPFO, and to facilitate the automation of the process of preparation of financial statements.

This will ensure that the annual accounts are prepared timely, and bring in professionalism and the latest practices in the process.