Law and You > Labour Laws > The Code on Social Security, 2020 > Employees Provident Fund Organisation (EPFO) (S. 14 CSS, 2020)
Central Board of Trustees administers the Employees Provident Fund Organisation (EPFO). Central Board and Executive Committee are part of the Trustees Board. Both the Central Board and Executive Committee have a chairman. There is a vice-chairman on the central board while the central PF commissioner on the Executive Committee. Both of them are represented by the central government, state government, employees and employers’ representatives.
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India, responsible for administering various social security schemes for employees in the organized sector. Explanation attached to Section 14(1) of the Code on Social Security, 2020 says that for the purposes of this Code, the expression “Employees’ Provident Fund Organisation” means the organisation consisting of officers and employees of the Central Board. Within the EPFO, there are several authorities and officials responsible for different functions and areas of operation. Here are some key authorities under the EPFO:
Central Board of Trustees (CBT):
The CBT is the apex decision-making body of the EPFO. It comprises representatives from the government, employers, and employees. The CBT formulates policies and guidelines related to provident fund, pension, and insurance schemes administered by the EPFO.
Functions of the Central Board of Trusties:
- Administration of Funds: The Central Board is responsible for the administration of the funds established under the Employees’ Provident Fund Scheme, Employees’ Pension Scheme, and Employees’ Deposit-Linked Insurance Scheme.
- Investment of Funds: The Board has the authority to invest the funds in accordance with the investment pattern prescribed by the Central Government, ensuring the safety, liquidity, and profitability of the investments.
- Management and Operation: The Board oversees the management and operation of the EPF, ensuring compliance with the provisions of the Code on Social Security, 2020, and other relevant regulations. Appointment of officers and staff.
- Delegation of Powers: Delegation of Administrative & Financial powers as it may deem necessary for efficient administration of the Schemes.
- Settling Claims: The Board is responsible for settling claims related to provident fund, pension, and insurance benefits of the employees and ensuring timely disbursement.
- Policy Formulation: The Board formulates policies related to the implementation of the schemes, including the maintenance of accounts, audit, and other administrative matters.
- Dispute Resolution: The Board has the authority to resolve disputes related to the implementation and administration of the EPF schemes.
- Maintenance of Accounts: Maintenance of accounts of Income & Expenditure in prescribed form and manner and submission of Audited Accounts (with comments of CAG) and Annual Report on performance of the Organisation to the Government.
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Central Provident Fund Commissioner:
The Code on Social Security, 2020, which aimed to streamline and consolidate various social security laws in India, including those related to provident funds, had been passed by the Indian Parliament. The Code on Social Security, 2020, give specific provisions regarding the Central Provident Fund Commissioner (CPFC). The CPFC is the administrative head of the EPFO. They oversee the day-to-day operations of the organization, ensure compliance with laws and regulations, and manage the EPF funds.
Appointment:
According to Section 14(1) of the Code on Social Security, 2020
- The Central Government may appoint a Central Provident Fund Commissioner.
- He shall be the Chief Executive Officer of the Central Board and
- He shall also function as head of the Employees’ Provident Fund Organisation.
Subordination:
- According to Section 14(2) of the Code on Social Security, 2020 the Central Provident Fund Commissioner shall be subject to the general control and superintendence of the Central Board in the discharge of his functions under the Code.
- According to Section 10 of the Code on Social Security, 2020 the Central Provident Fund Commissioner and the Director General shall be the whole-time officer of the Central Board and the Corporation, respectively, and such officer shall not undertake any work unconnected with his office without the prior approval of the Central Government.
Powers of Central Provident Fund Commissioner:
- According to Section 9(2) of the Code on Social Security, 2020 all orders and decisions of the Social Security Organisation shall be authenticated by the Central Provident Fund Commissioner, Director General, Director General Labour Welfare, State Principal Secretary or Secretary (Labour) of the respective Social Security Organisations or such other officer as may be notified by the appropriate Government and all other instruments issued by the Social Security Organisation shall be authenticated by the signature of such officer as may be authorised by an order by the respective Social Security Organisations.
Functions of Central Provident Fund Commissioner:
The Central Provident Fund Commissioner (CPFC) plays a pivotal role in overseeing the overall functioning of the Employees’ Provident Fund Organisation (EPFO) in India. Here are some of the key functions typically associated with the CPFC:
- Administrative Oversight: The CPFC provides administrative leadership to the EPFO, ensuring that its operations align with the organization’s objectives and the relevant laws and regulations.
- Policy Formulation: The CPFC participates in the formulation of policies related to provident fund schemes, pension schemes, and insurance schemes administered by the EPFO. They may work with the Central Board of Trustees (CBT) to develop policies that enhance social security benefits for employees.
- Compliance Monitoring: The CPFC is responsible for monitoring compliance with EPF laws, rules, and regulations. They oversee the enforcement of contribution requirements by employers, ensure timely deposits of contributions, and take action against non-compliant entities.
- Financial Management: The CPFC oversees the management of EPF funds, ensuring their prudent investment and growth while maintaining liquidity to meet the fund’s obligations.
- Stakeholder Engagement: The CPFC engages with stakeholders such as employers, employees, trade unions, and government agencies to address concerns, gather feedback, and promote awareness about EPF schemes and benefits.
- Legal and Regulatory Compliance: The CPFC ensures that EPFO operations comply with all applicable legal and regulatory requirements. They may coordinate with legal advisors and government agencies to interpret laws and resolve legal issues.
- Strategic Planning: The CPFC participates in strategic planning exercises to enhance the EPFO’s effectiveness and efficiency. They may identify areas for improvement, set organizational goals, and implement strategies to achieve them.
- Reporting and Accountability: The CPFC reports to higher authorities, such as the Ministry of Labour and Employment, on the EPFO’s performance, challenges, and achievements. They are accountable for the organization’s outcomes and may be required to testify before legislative bodies or regulatory agencies.
Thus, the CPFC plays a multifaceted role in leading and managing the EPFO, ensuring the effective administration of provident fund schemes and the provision of social security benefits to employees in the organized sector in India.
Other Provident Fund Commissioners:
- According to Section 14(4) of the Code on Social Security, 2020 the Central Board may appoint, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and such other officers and employees as it may consider necessary for the efficient administration of the Provident Fund Scheme, the Pension Scheme and the Insurance Scheme or other responsibilities assigned to the Central Board from time to time by the Central Government.
- Regional Provident Fund Commissioners (RPFCs) are appointed to oversee the EPFO’s operations in specific regions or zones across the country. They are responsible for implementing EPF schemes, conducting inspections, resolving grievances, and ensuring compliance within their jurisdictions. Assistant Provident Fund Commissioners (APFCs assist RPFCs in the implementation and administration of EPF schemes at the regional level. They handle various administrative tasks, including inspections, enforcement, and compliance activities.
Other Authorities:
Account Officers:
- According to Section 14(3) of the Code on Social Security, 2020 the Central Government shall appoint a Financial Advisor and Chief Accounts Officer to assist the Central Provident Fund Commissioner in the discharge of his duties. Accounts Officers (AOs) handle the financial aspects of EPF accounts. They manage the contributions, withdrawals, transfers, and settlements of EPF accounts of employees.
Other Officers:
- Enforcement Officers: Enforcement Officers (EOs) are responsible for enforcing compliance with EPF laws and regulations. They conduct inspections, investigations, and take necessary actions against employers who violate EPF provisions.
- Social Security Assistant: Social Security Assistant (SSA) provide assistance and support to EPF members regarding their accounts, claims, and other EPF-related matters.
Conditions of Appointment under EPFO:
- According to Section 14(5) of the Code on Social Security, 2020 no appointment to the post of the Central Provident Fund Commissioner or an Additional Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group ‘A’ or Group ‘B’ post under the Central Government shall be made except after consultation with the Union Public Service Commission. No such consultation shall be necessary in regard to any such appointment— (a) for a period not exceeding one year; or (b) if the person to be appointed is, at the time of his appointment,— (i) a member of the Indian Administrative Service, or (ii) in the service of the Central Government or the Central Board in a Group ‘A’ or Group ‘B’ post.
- According to Section 14(6) of the Code on Social Security, 2020 the method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund Commissioner and the Financial Adviser and Chief Accounts Officer shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Provident Fund.
- According to Section 14(7)(a) of the Code on Social Security, 2020 the method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay: Provided that where the Central Board is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government: Provided further that the salary and allowances of the officers specified in this clause shall not exceed the scale of pay respectively provided in the Provident Fund Scheme.
- According to Section 14(7)(b) of the Code on Social Security, 2020 in determining the corresponding scales of pay of officers and employees under clause (a), the Central Board shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.
Conclusion:
The Employees’ Provident Fund Organisation (EPFO) in India operates with a structured hierarchy of officers responsible for various functions related to the administration and management of provident fund schemes. At the apex of the hierarchy is the Central Provident Fund Commissioner (CPFC), who oversees the organization’s overall functioning and policy formulation. Assisting the CPFC are Additional Central Provident Fund Commissioners (ACFCs), who may have specific portfolios or responsibilities. Regional Provident Fund Commissioners (RPFCs) oversee EPFO operations in specific regions or zones, ensuring compliance, resolving grievances, and implementing schemes. Assistant Provident Fund Commissioners (APFCs) work under RPFCs, assisting in administrative tasks, inspections, and compliance enforcement.
Enforcement Officers (EOs) are responsible for enforcing EPF laws and regulations through inspections and investigations. Accounts Officers (AOs) manage the financial aspects of EPF accounts, including contributions, withdrawals, and settlements. Social Security Assistants (SSAs) provide assistance and support to EPF members regarding their accounts and claims.
Together, these officers ensure the effective implementation of EPF schemes and provide social security benefits to employees in the organized sector across India.
Related Topics:
- Board of Trustees of Employees’ Provident Fund (S. 4 CSS, 2020)
- Employees’ Provident Fund Schemes (Ss. 15 to 23 CSS, 2020)