Parl panel flags non-contribution by pvt sector employers in employees' PF

A Parliamentary Committee on Thursday pointed out non-payment of contribution by private sector employers towards their employees' provident fund and asked the government to take up the matter with EPFO in case any such grievances are received.

The observation was recorded by the Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice in its 146th report, tabled in Parliament on Thursday, on the Demands for Grants (2025-26) pertaining to the Department of Administrative Reforms & Public Grievances (DARPG) and Department of Pension & Pensioners' Welfare.

"It has come to the notice of the Committee, that in the form of public grievances a large number of employees who work in private sector where funds are under the watch of EPFO, the employer do not pay their share of contribution and even sometimes do not even pay the employees' contribution as well," the report said.

The panel said some of the private sector organisations have made trusts, and deposit their and their employees' contribution in that trusts.

"The money is also not paid to the employees. The hard-earned money of employees which have been mandatorily deducted and employer's share is not credited to the employee's EPFO account. In such instance when any grievance of such type is received by the Department, the Committee feels that it should take up with EPFO (Employees' Provident Fund Organisation)," reads the report.

The Committee appreciated the 10-step CPGRAMS (Centralised Public Grievances Redress and Monitoring System) reforms process that was adopted by DARPG for improving the quality of grievance disposal and reducing the time lines.

The CPGRAMS allows citizens to raise grievances against government departments.

"The Committee commends the Department for faster rate of disposal of grievances by reducing the average disposal time from 32 days in 2021 to 16 days in May 2023," the report said.

To further improve the disposal rate, the panel recommended the DARPG to integrate state portals with CPGRAMS, standardise naming conventions, and establish a feedback mechanism to monitor and enhance the quality of grievance redressal, it said.