More than 10,000 companies — including 1,195 state-owned — nationwide have defaulted on provident fund payments: 2,200 companies owe at least Rs 2,200 crore to the EPFO, the portion of employee salaries they should have deposited.
The numbers of companies and institutions defaulting on their payments to EPFO are growing. There were 10,091 defaulters in 2014-15, rising to 10,932 by December 2015.
Online consumer forums are flooded with complaints as hundreds of employees who have quit or retired from a company are deprived of their provident fund. “We get lots of complaints from workers who have been denied their provident fund and also complaints of collusion between EPFO officials and employers,” said All-India Trade Union Congress secretary and EPFO trustee D.L. Sachdev.