Employers dodge KYC compliance for EPF

PANAJI: A large number of employees in the state are likely to lose out on the online claim facility of the Employee Provident Fund, starting from January 1 2019, due to the negligence of companies in complying with KYC. 

Of the 2.09 lakh provident fund subscribers in the state only 50 per cent of the subscribers have KYC.  The deadline for KYC compliance is only 12 days away with December 25 set as the date by the Employee Provident Fund Organisation to abide by the know-your-customer norm.

“KYC compliance for subscribers is a statutory obligation by the employers and failure to do so may attract legal action against the establishments,” regional PF commissioner Ashwini Kumar Gupta warned.

If establishments need assistance for complying with the KYC norm then they can contact the office immediately, Gupta said, adding that special squads of officials have been formed to visit establishments or contact them on the phone in meeting the deadline.

Gupta said that despite repeated guidance, directions and visits of officials, the response from the employers has been “unsatisfactory”. Regular complaints are being received from subscribers against their employers’ refusal to approve their KYC, he said.

The regional office has set up special counters for assisting the subscribers facing difficulty in filing online claims.

KYC of a subscriber requires linking of the bank account, PAN and Aadhaar number with the universal account number (UAN) of the subscriber given by the employer.

The UAN number is assigned by the EPFO office.

Online settlement of claims is likely to give a respite to a large number of the claimants, especially those staying in remote places.

The PF payment is expected to be quick under the online system, according to officials at the regional office.

It has been estimated that the state has 5,100 establishments with 16.9 lakh EPF accounts. However, nearly 50 per cent of establishments are closed or wound up and actual establishments registered under the electronic challan cum return (ECR) portal of the EPFO are 2,600 companies.

PF evasion is rampant in Goa with companies delaying in contributing their share or not disclosing the actual number of employees eligible for PF.

“Out of the 2,600 establishments approximately 1,000 companies are not contributing regularly. And even among those who are contributing there is 50 per cent evasion,” according to the regional office.