Students getting stipend need not contribute for EPF

Retirement body EPFO has made it clear that student trainees getting stipend are not required to contribute towards social security schemes run by it.
"The organisation has clarified that student trainees who are paid stipend during on the job training while pursuing course in technical/professional educational institutions would not come under the definition of employee for the purpose of EPF & MP Act," the Employees' Provident Fund Organisation said in a statement.
It said this removes the ambiguity surrounding the eligibility of such student-trainees for enrolling as members of the Fund and is expected to bring about greater clarity among employers and also reduce litigations.

EPFO has settled more than 70 lakh claims in the current fiscal (till October end) and 42 per cent of those have been settled within three days, while 80 per cent were settled within 10 days and 97 per cent within the mandated 20 days.
Likewise grievance redressal has also been progressing at a brisk pace and more than 18,000 grievances were settled in the month of October alone, it said.
In a major step to assess the position of the accounting procedures in EPFO, it was decided to have a study conducted on the accounts issues of organisation.

It was also decided that inoperative accounts of less than Rs 1,000 shall be transferred to the reserve account, said the release about the monthly review of performance of EPFO.

A provident fund account becomes inoperative when the contributions are not made for continuous 36 months. These are accounts are not credited with interest income. However these can be transferred to other accounts or settled by claimants.
Addressing the concerns voiced by the Standing Committee on Labour, a drive for ensuring compliance in respect of Public Sector Undertakings has been initiated.
Special emphasis is laid on extension of the benefits of the Act and schemes to the eligible employees working in PSUs like Bombay Port Trust, Jawaharlal Nehru Port Trust, BSNL, MTNL, ONGC, NHAI, Indian railways and CPWD.
Likewise, the extension of benefits to the workers engaged in the construction industry has also been the focus of the organisation this month.

October also saw a slight modification in the Central Board of Trustees as Balasubrahmanyam Kamarsu has been nominated to the Board as an employers' representative against the vacancy arising out the demise of Ram Tarneja.
The Sub Committees on Contract Workers, Pension and EDLI Implementation Committee, Finance, Investment and Audit Committee of CBT, EPF were also reconstituted.