Central PF Commissioner Samirendra Chatterjee tells Santosh Tiwari how the Employees’ Provident Fund Organisation is becoming subscriber-friendly.
The online account information facility started from July 1. How will this work, moving ahead?
We have started the online account information facility on the Employees’ Provident Fund Organisation (EPFO) website. To avail themselves of this facility, subscribers will have to go to the site and provide their account number and mobile number. They will be intimated about their account balance through SMS. In some cases, accounts have been updated till 2010-11. By mid-July, all the accounts will be updated till at least 2008-09 and by December, these will be updated till 2010-11. The status of account updation is available on our website. In case of those organisations where filing of the Employees’ Provident Fund (EPF) details have been regular, the accounts were updated till 2010-11.
This is for accounts with EPFO. What about exempted trusts?
After we have made these available on our website, we will ask the exempted trusts to put them up on their own websites or link these with our website. Organisations which have exempted trusts for EPF will be required to update their accounts themselves. There are 3,000 of them, managing Rs 1 lakh crore. EPFO has a nearly Rs 2.5 lakh crore PF corpus from employees belonging to 600,000 organisations.
How are the other subscriber-friendly measures working such as information on claim status through the website and SMS?
The keen interest of the minister of labour and employment has ensured speedy movement on the computerisation front. Besides, we are adding new features. One of these is the SMS facility. Earlier, members could not know about their claim status after filing applications. Now, they can view it on our website as well as be intimated at every stage of processing through SMSes — from acceptance of the form to actual transfer of their money to their bank accounts.
Don’t you think there is a possibility of misuse of these facilities?
After all, at some stage, you have to trust the people. The good thing is that the mobile number will get recorded with us. In case of any mischief, we will be able to trace the person.
The members are only getting information about the account balance. Through the mobile and website, we are not allowing any transaction. Transactions will follow the traditional method. We are not giving it on the screen. We are giving them through SMSes. To that extent, it is safe and secure.
Are you thinking of providing an online window for filing applications for transfer and settlement of accounts, as a next step?
We are already in the process. We are developing the software and testing it. We would wait for the current work of computerisation before introducing this facility. After that, we will definitely be bringing in the online filing of applications for transfer and settlement of accounts, followed by a hard copy. Initially, the digital signature facility will not be there and the members will have to send us a hard copy within a specified time, subsequent to the filling of the form online.
EPFO has the capability now. Why can’t this be allowed quickly?
We are trying to take one step at a time. Considering the huge size of our organisation, it is difficult to cope with too many facilities at one point of time. So, we are trying to do it step by step.
What about Indian employees working abroad and contributing to the social security scheme of that country with whom India has a Social Security Agreement (SSA)? Are they coverable for PF in India or are they treated as excluded employees?
An Indian employee sent on posting to a country with which India has an SSA becomes an “international worker” and is required to contribute on full salary. He can, however, seek exemption from the social security legislation of the country in which he is posted on the basis of a detachment certificate issued, in terms of SSA. If an Indian employee is directly employed by a local employer abroad, he will be covered by the foreign country’s legislation.
What is the status of SSAs?
Three SSAs in respect of Belgium, Germany and Switzerland have been made effective from September 1, 2009, October 1, 2009 and January 29, 2011, respectively. Apart from these, SSAs have already been signed with France, the Netherlands, Czech Republic, Denmark, Hungary, Norway, Luxembourg, and Republic of Korea, but not yet made effective. Negotiations are at various stages with Canada, Quebec, Sweden, Australia, USA and Austria. Government-level talks are on with many other countries where sizable numbers of Indian workers are employed.
What about Indian employees working abroad and contributing to the social security scheme of a country with which India does not have a SSA?
If an Indian employee prior to his posting abroad qualifies/happens to be a contributing member of EPF, he will continue to be a member during his posting to a country with which India does not have an SSA.
And, foreign nationals employed in India and being paid in foreign currency...
International workers drawing salary in any currency and in any manner are to be covered.
How long can an Indian employee retain the status of ‘international worker’?
An Indian employee attains the status of ‘international worker’ only on account of employment in a country with which India has an SSA. He will have that status till the time he avails the benefits under a social security programme covered under that SSA.
When will the independent custodian of securities be appointed?
We are in the process. We expect the independent custodian of securities to be appointed along with the new fund managers, before August. There would be four fund managers.
Will it be possible to retain 9.5 per cent interest rate for 2011-12?
We are in the process of consolidating and calculating. At this juncture, I can only say we will try to give the best return possible based on the earnings.
The income tax department has raised tax demand on withdrawals. How do you plan to tackle this?
Some field officials in the income tax department have issued some notices and raised tax demands. We are taking it up at the appropriate fora and that will take its own course.
The online account information facility started from July 1. How will this work, moving ahead?
We have started the online account information facility on the Employees’ Provident Fund Organisation (EPFO) website. To avail themselves of this facility, subscribers will have to go to the site and provide their account number and mobile number. They will be intimated about their account balance through SMS. In some cases, accounts have been updated till 2010-11. By mid-July, all the accounts will be updated till at least 2008-09 and by December, these will be updated till 2010-11. The status of account updation is available on our website. In case of those organisations where filing of the Employees’ Provident Fund (EPF) details have been regular, the accounts were updated till 2010-11.
This is for accounts with EPFO. What about exempted trusts?
After we have made these available on our website, we will ask the exempted trusts to put them up on their own websites or link these with our website. Organisations which have exempted trusts for EPF will be required to update their accounts themselves. There are 3,000 of them, managing Rs 1 lakh crore. EPFO has a nearly Rs 2.5 lakh crore PF corpus from employees belonging to 600,000 organisations.
How are the other subscriber-friendly measures working such as information on claim status through the website and SMS?
The keen interest of the minister of labour and employment has ensured speedy movement on the computerisation front. Besides, we are adding new features. One of these is the SMS facility. Earlier, members could not know about their claim status after filing applications. Now, they can view it on our website as well as be intimated at every stage of processing through SMSes — from acceptance of the form to actual transfer of their money to their bank accounts.
Don’t you think there is a possibility of misuse of these facilities?
After all, at some stage, you have to trust the people. The good thing is that the mobile number will get recorded with us. In case of any mischief, we will be able to trace the person.
The members are only getting information about the account balance. Through the mobile and website, we are not allowing any transaction. Transactions will follow the traditional method. We are not giving it on the screen. We are giving them through SMSes. To that extent, it is safe and secure.
Are you thinking of providing an online window for filing applications for transfer and settlement of accounts, as a next step?
We are already in the process. We are developing the software and testing it. We would wait for the current work of computerisation before introducing this facility. After that, we will definitely be bringing in the online filing of applications for transfer and settlement of accounts, followed by a hard copy. Initially, the digital signature facility will not be there and the members will have to send us a hard copy within a specified time, subsequent to the filling of the form online.
EPFO has the capability now. Why can’t this be allowed quickly?
We are trying to take one step at a time. Considering the huge size of our organisation, it is difficult to cope with too many facilities at one point of time. So, we are trying to do it step by step.
An Indian employee sent on posting to a country with which India has an SSA becomes an “international worker” and is required to contribute on full salary. He can, however, seek exemption from the social security legislation of the country in which he is posted on the basis of a detachment certificate issued, in terms of SSA. If an Indian employee is directly employed by a local employer abroad, he will be covered by the foreign country’s legislation.
What is the status of SSAs?
Three SSAs in respect of Belgium, Germany and Switzerland have been made effective from September 1, 2009, October 1, 2009 and January 29, 2011, respectively. Apart from these, SSAs have already been signed with France, the Netherlands, Czech Republic, Denmark, Hungary, Norway, Luxembourg, and Republic of Korea, but not yet made effective. Negotiations are at various stages with Canada, Quebec, Sweden, Australia, USA and Austria. Government-level talks are on with many other countries where sizable numbers of Indian workers are employed.
What about Indian employees working abroad and contributing to the social security scheme of a country with which India does not have a SSA?
If an Indian employee prior to his posting abroad qualifies/happens to be a contributing member of EPF, he will continue to be a member during his posting to a country with which India does not have an SSA.
And, foreign nationals employed in India and being paid in foreign currency...
International workers drawing salary in any currency and in any manner are to be covered.
How long can an Indian employee retain the status of ‘international worker’?
An Indian employee attains the status of ‘international worker’ only on account of employment in a country with which India has an SSA. He will have that status till the time he avails the benefits under a social security programme covered under that SSA.
When will the independent custodian of securities be appointed?
We are in the process. We expect the independent custodian of securities to be appointed along with the new fund managers, before August. There would be four fund managers.
Will it be possible to retain 9.5 per cent interest rate for 2011-12?
We are in the process of consolidating and calculating. At this juncture, I can only say we will try to give the best return possible based on the earnings.
The income tax department has raised tax demand on withdrawals. How do you plan to tackle this?
Some field officials in the income tax department have issued some notices and raised tax demands. We are taking it up at the appropriate fora and that will take its own course.
