Regional Provident Fund Commissioner-II, Samuel Das addressing media persons at the EPFO Special State Office, United Colony, Half Nagarjan on Friday. (Morung Photo)
Mandatory for establishments employing 20 or more workers to register under EPFO
Morung Express News
Dimapur | April 11
The Employees’ Provident Fund Organisation (EPFO) has urged greater participation from people of Nagaland, particularly private sector employers, in ensuring social security for employees across the state.
This appeal was made during a press conference held on Friday at the EPFO Special State Office in Dimapur, where Regional Provident Fund Commissioner-II Samuel Das, who joined office on April 7, spoke on the importance of bringing more establishments and workers under the EPFO umbrella.
Das highlighted that the EPFO, a statutory body under the Ministry of Labour and Employment, Government of India, plays a crucial role in safeguarding the financial future of employees through three key schemes—the Employees’ Provident Fund (EPF), the Employees’ Pension Scheme (EPS), and the Employees’ Deposit Linked Insurance Scheme (EDLI). These schemes provide retirement savings, pension support, and life insurance benefits respectively.
He noted that a significant number of private institutions in Nagaland are yet to register under the EPFO despite being eligible or even statutorily obligated. As per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, establishments with 20 or more workers must register under EPFO. Employees earning up to Rs 15,000 monthly are compulsorily eligible. Both employer and employee contribute 12% of basic wages toward the EPF account, building a retirement corpus. Part of the employer’s share goes toward pension and insurance.
Das stated that while the law mandates compliance, EPFO is currently emphasizing outreach and awareness. “While we are a statutory body and enforcement is an option, we are currently inviting employers to come forward. We want them to understand the long-term benefits this offers to their workforce,” he explained. He added that even establishments with fewer than 20 employees could voluntarily register and extend social security to their workers.
He further explained that it is the employer’s responsibility to ensure registration and compliance. “Many employees want to join, but unless their employer registers the establishment under the EPFO, the workers are left without access to these vital benefits,” he said.
Comparing India’s model to the US, Das pointed out that unlike the US which automatically covers most workers, the Indian system puts the onus on employers.
Das said all that is required for an employee to join the Fund is an Aadhar, PAN, and a bank account as KYC documents. He added that employees receive a Universal Account Number (UAN), which is valid across India and remains portable from job to job. “Once an employee gets a UAN, he/she does not require any other social security number with the change of employment,” he said.
The Commissioner highlighted the attractive 8.25% interest rate on EPF deposits, compounded annually. “It is one of the highest interest rates available in the market today for retirement savings, and it is completely risk-free,” he stated, adding that the fund is backed by the Government of India.
The EPFO has digitized much of its operations. “The EPFO portal is equipped to handle all services digitally. We encourage employers and employees to use these platforms to save time and effort,” Das noted. “For instance, EPFO members from Mon, Mokokchung, or Tuensang no longer need to travel all the way to the Dimapur office. They can complete the necessary procedures themselves from the comfort of their home.”
The Commissioner also said the government is ready to expand the Dimapur office based on demand. “The government is ever ready to strengthen the office if there is more engagement from the people. If we see more members coming forward, the infrastructure and manpower will be scaled up to meet the requirements,” he said.
The office can be contacted over phone: 03862-23484 / 6909318701 and email: sso.dimapur@epfindia.gov.in on all working days (Monday to Friday excepting holidays).
