 "Rupee, EPFO, money, economy")
The total amount under inoperative accounts under the Employees’ Provident Fund (EPF) Scheme, 1952 is Rs 4,962.7 crore, Minister of State, Labour, Rameshwar Teli, has told the Lok Sabha.
“As per paragraph 72(6) of the EPF Scheme 1952, certain accounts are classified as Inoperative Accounts. All such Inoperative Accounts, however, have definite claimants. As on 31.03.2022, the total amount in Inoperative Accounts is Rs 4962.70 crore,” the minister said, while replying to a question regarding the large number of EPF accounts of staff lying inoperative for several years.
An account is classified as inoperative under the scheme where there has been no contribution from either the employee or the employer for 36 months, or the member has not withdrawn money within three years after leaving the company, or the amount remitted to a person has been undelivered or not have been reclaimed. However, interest is still paid on these inoperative accounts.
According to the EPF scheme — one of the three schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952 — an employee of any covered establishment drawing monthly wages up to Rs 15,000 is statutorily required to join the fund and to contribute 12 per cent of the wages, including basic pay, dearness and retaining allowance, if any. The employer is also required to contribute 12 per cent of the wages.
