EPFO clarifies regarding procedure for processing applications for exemption or extension by authorities; prescribes format for proposal for exemption or extension

The Employees Provident Fund Organization (“EPFO”) clarifies regarding the procedure to be followed by the Addl. CPFC (Zones) and RPFCs in-charge of the ROs for processing applications for grant of exemption or extension of exemption under the Section 17(2A)* of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“Act”).

EPFO re-iterates that the Addl. CPFC, Zone has to enclose a certificate that the exemption has to be granted and the establishment comply/is complying in respect of all the categories and classes of employees including contractual and casual ones in its own EPF Code number.

Background:

Under the Employees’ Deposit Linked Insurance Scheme, 1976 (“EDLI Scheme”), in addition to the Central P.F. Commissioner, Addl. CPFC (Zone) as the authority to grant exemption to the establishments where it is case of exemption of “class of employees” under the Act. In this regard it is observed that most of the establishments that submit proposal for grant of exemption from the Scheme, seek exemption only for their regular / direct employees who are on their rolls and for whom the ECR is being filed by the establishment. Contractual employees or employees engaged through Contractor/s, daily wage workers, etc. are not included in the exemption applications.

Key procedure to be followed by Addl. CPFC (Zones) and RPFCs in-charge of the ROs for processing applications for grant of exemption or extension of exemption:

1. The applications complete in all respects will be scrutinized by RPFCs in-charge before forwarding to the Addl. CPFC (Zone) and stating clearly the section under which approval of grant of exemption is required.
2. The requisite documents such as Group Insurance Policy, acceptance of the policy by majority of the employees, advance premium receipts, benefit comparison statement, declaration of the employer for coverage of all categories of employees and EOs report to be enclosed.
3. The exemption application will be scrutinised by the Addl. CPFCs (Zones) carefully and determine whether the request pertains to the whole of the establishment or a class of employees.
4. The Addl. CPFCs Zones will grant exemption to all such applications either retrospectively or prospectively under the Scheme.
5. The Addl. CPFC (Zone) will forward the proposal for exemption/extension in the prescribed proforma with the requisite certificates to Head Office.
6. ACCs(Zones) may ensure that all pending applications for EDLI Scheme exemptions may be processed and disposed by 30th November 2025.

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Source: Employees Provident Fund Organization