J&K staff integration: EPFO sticks to 2019 cutoff, sparks concern

The proposals also seek to withdraw a decision taken at the 235th CBT meeting in Feb 2024, which had recognised one such promotion, citing the need to maintain consistency with the earlier framework

The Employees’ Provident Fund Organisation (EPFO) is finalising its approach to integrating employees from the erstwhile Jammu & Kashmir (J&K) EPFO following the region’s reorganisation in October 2019, according to multiple people aware of the matter.

 

The merger stems from the Jammu & Kashmir Reorganisation Act, 2019, which brought the region’s administrative framework in line with central laws. As part of this transition, social security functions handled by the erstwhile J&K EPFO were brought under EPFO, requiring the integration of employees, records, and liabilities.

 

A Central Advisory Committee under the Ministry of Home Affairs recommended that staff continue in their existing roles until the transfer of assets and liabilities is completed, while giving employees the option to be absorbed either into the Union Territory government or into EPFO, the people said.

 

The framework for absorption was approved by the Central Board of Trustees (CBT) at its 228th meeting on March 4, 2021, and communicated to employees in May 2022. Under this framework, employees are to be absorbed based on their position as of October 31, 2019. People aware of the discussions said promotions granted after the reorganisation may not be recognised, with employees likely to be placed according to the 2019 cutoff.

 

At the same time, the proposals seek to protect employees’ pay. This means that even if an employee is placed in a lower post than the one held after promotion, their salary will not be reduced. The protected pay will be treated as a personal benefit and will not affect future promotions or seniority, the people said.

 

A communication sent to the government in September 2025 by a senior employee of the erstwhile J&K EPFO flagged concerns about how employees are being treated after the merger, according to a copy of the letter reviewed by Business Standard. The letter raised issues related to the non-recognition of promotions, differences in post allocation, and the impact on career progression, and sought a review of some decisions taken during the absorption process. It said employees promoted under the earlier system were facing uncertainty over their designation and seniority under EPFO, and called for a more consistent approach to integration. Multiple representations from employees and associations have also been submitted to the government and EPFO, raising similar concerns, including over seniority, postings, and career progression.

 

The current proposals seek to treat the 2021 absorption framework as final, with limited exceptions. Employees who were promoted between October 31, 2019, and March 4, 2021, but whose details were not available at the time, may be considered for corresponding posts if those details were submitted later. However, promotions granted after the March 2021 CBT decision are not proposed to be recognised, and employees seeking revised designations on that basis would not be given additional benefits.

 

The proposals also seek to withdraw a decision taken at the 235th CBT meeting in February 2024, which had recognised one such promotion, citing the need to maintain consistency with the earlier framework. Absorption of employees is proposed to be treated as effective from October 23, 2023, on a notional basis, in line with other similarly placed employees.

 

In addition to service-related issues, EPFO is also seeking to limit its financial exposure from the merger. The organisation does not intend to take over all pension liabilities of employees from the erstwhile J&K EPFO, the people said. Instead, only specific cases may be considered, such as those where employees had opted for EPFO but could not formally join before retirement or death. In such cases, pension liabilities would be transferred only after a financial assessment and the transfer of funds from the J&K side.