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Last Updated : Oct 23, 2018 05:52 PM IST | Source: Moneycontrol.com

EPFO will not prosecute employers over Aadhaar non-compliance: Report

The EPFO is yet to put out a formal notice withdrawing its earlier order of mandatory linking of PF accounts with Aadhaar

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The Employee Provident Fund Organisation (EPFO) issued a circular to the Central Provident Fund Commissioners (CPFCs) to “avoid any coercive action by way of prosecution” in provident fund (PF)-Aadhaar linking cases, a move that will bring relief to employers, reported DNA.

The EPFO is yet to put out a formal notice withdrawing its earlier order of mandatory linking of PF accounts with Aadhaar.

This comes a month after the Supreme Court ruled that benefits earned by an individual are not a part of any welfare scheme and therefore, Aadhaar linking cannot be made mandatory.

Many employers had been given prosecution notices after they failed to remit their PF dues in time as they were unable to link their Aadhaar with their PF accounts. Suchita Dutta, Executive Director of the Indian Staffing Federation (ISF) said employees can breathe easy now. Dutta had held many meetings with the EPFO on this issue.

She added that companies had been pressurizing employees to comply with the PF-Aadhaar linking, but now authorities have assured employers’ representative bodies that linking rule will be removed in due course.

The government-backed PF firm can now retain Aadhaar verification of employees and employers availing of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) benefits.

This scheme was launched in 2016, to incentivise micro, small and medium enterprises to employ more people and expand their business. Under this, the government pays the employers’ share of the Employee Pension Scheme of 8.33 percent. It can be availed by workers earning less than Rs 15,000 per month.

Dutta said wherever government benefits and subsidies are concerned, Aadhaar linking becomes necessary.
First Published on Oct 23, 2018 05:52 pm
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