In a move that will bring much reprieve to employers in depositing monthly Employees Provident Fund or EPF contributions of their workers, the government on Tuesday launched an online facility that promises to bring transparency and accessibility.
The hassles of preparing various monthly and annual paper returns and visiting the EPFO offices for submitting them will become a thing of the past, Union minister of labour and employment Mallikarjun Kharge said while inaugurating the E-Challan and Receipt (ECR) facility.
Employees will soon be able to check their accounts for update under the initiative, Kharge added.
As was reported by The Indian Express earlier, employers under the ECR service would have to register their organisations online and generate challans for making monthly deposits.
They can then use the challan for either electronically or physically depositing the Provident Fund or PF contributions to the bank.
As soon as the bank would confirm the deposit, the concerned regional offices system would be automatically notified and individual members accounts would get updated.
Central Provident Fund Commissioner RC Mishra said that claim settlement process would become much easier as under the new initiative, employee details will be added and updated electronically.
This will also do away with the need of annual accounts preparation at the end of the year, he said.
He said the manpower engaged for these old processes can be gainfully utilised for other activities.
Meanwhile, Kharge who also greeted workers on the occasion of International Labour Day, also promised to give an interest rate of more than the prevailing 8.25 per cent on Employees Provident Fund deposits in 2012-13.
Suppose if our income goes up, it (EPF return) may be beyond 8.25 per also, Kharge said.