You are here: Home » PF » News » Others
Losing steam: Average NFO collection slumps in FY23, shows data
Business Standard

EPFO moving towards automation; set to rationalise workforce for efficiency

EPFO said it is moving more from forceful compliance to voluntary compliance. And, in the future, it will be fully governed by technology

Topics
EPFO | Automation | Indian workforce

Shiva Rajora  |  New Delhi 



EPF
With its growing global footprint, EPFO also provides social security benefits to international workers

The Provident Fund Organisation (EPFO) is going to undertake an organisational restructuring through comprehensive rationalisation of its manpower and field offices. This is in keeping pace with the technological changes and evolving nature of social security in India.

The statutory body — under the ministry of labour & employment — has issued a request for proposal (RFP) to undertake a work study by one of the top 20 National Institutional Ranking Framework (NIRF)-ranked institutes in the category of management.

The report needs to be submitted in six months’ time once the study commences on November 1.

said it is moving more from forceful compliance to voluntary compliance. And, in the future, it will be fully governed by technology.

“A lot of functions have been centralised and computerised like auto settlement of claims. Manpower is proposed to be utilised more in areas where personal interaction is required. Hence, better utilisation of the workforce has become the need of the hour. These main changes require a rationalisation of the workforce, thereby increasing operating efficiency of the EPFO,” it said in the RFP document.

is one of the largest social security organisations in the world with 67 million contributory members in 69 million establishments across India. In FY21, it processed 45.8 million claims, 14 per cent of which were “auto-processed.”

EPFO moving towards automation; set to rationalise workforce for efficiency

With its growing global footprint, also provides social security benefits to international workers. India is a signatory to bilateral social security agreements with 20 countries.

“The organisational structure, the re-deployment and disposition of manpower and the career paths and requirements of officers and staff, among others, need to be taken up as a comprehensive proposal for adoption. This is because the human resource component as well as the organisational structure across the country is prepared to absorb and exploit effectively the technology being envisaged,” EPFO said.

Currently, EPFO has 21 zonal offices, 138 regional offices, 114 district offices, five special state offices, one national training institute and five zonal training institutes. It employs 14,484 people even as 39.8 per cent of its positions remain vacant.

Last time the EPFO conducted a cadre restructuring was in 2016. In this, the basic structure of the organisation and various departments in the EPFO were changed.

“As five years have already elapsed since the last cadre restructuring, there has been massive changes in the social security scenario in India,” EPFO said.

The terms of reference of the study includes identifying and defining each role and key tasks and deliverables to eliminate redundancy in the workforce. This is keeping in mind the undergoing changes in IT systems and .

The EPF is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the aegis of EPFO.

It covers every establishment in which 20 or more persons are employed and certain other establishments, which may be notified by the central government even if they employ less than 20 persons each. The pay ceiling is Rs 15,000 per month. Persons drawing a pay above Rs 15,000 are exempt or can be enrolled on a voluntary basis.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 21 2022. 21:29 IST

RECOMMENDED FOR YOU

.