Inoperative EPF accounts rise to 5 fold worth Rs 8,505.23 crore in six years

As many as 21,55,387 inoperative accounts with Rs 8,505.23 crore were detected in 2023-24 as against 6,91,774 inoperative accounts with Rs 1,638.37 crore in 2018-19.

Inoperative accounts in employees' provident fund (EPF) have risen over five-fold from Rs 1,638.37 crore in 2018-19 to Rs 8,505.23 crore in 2023-24, the Ministry of Labour and Employment informed Lok Sabha on Monday.

In a written response to queries by Congress MP Manish Tewari and AIMIM's Asaduddin Owaisi, Minister of State Shobha Karandlaje said there are no unclaimed accounts in EPF though the scheme has identified certain accounts as inoperative accounts.

As many as 21,55,387 inoperative accounts with Rs 8,505.23 crore were detected in 2023-24 as against 6,91,774 inoperative accounts with Rs 1,638.37 crore, the Ministry data presented in Lok Sabha showed.

The number of accounts and the amount held in those accounts had risen over the years. In 2019-20, there were 9,77,763 accounts with Rs 2,827.29 crore while it rose to 11,72,923 accounts with REs 3,930.85 crore in the next fiscal.

In 2021-22, there were 13,41,848 accounts with Rs 4,962.70 crore while in 2022-23, it further rose to 17,44,518 with Rs 6,804.88 crore.

"The EPFO (Employees' Provident Fund Organisation) will return the amount held in the inoperative accounts to the concerned beneficiaries," Karandlaje said adding all inoperative accounts with definite claimants, who file a claim with the EPFO, will get the money after scrutiny,

While Rs 2,881.53 crore in inoperative accounts was settled in favour of beneficiaries in 2018-19, it rose to Rs 4,123.82 crore the next fiscal followed by Es 1,855.55 crore in 2020-21, ERs 2,269.75 crore in 2021-22 and Rs 2,673.97 crore in 2022-23.

In 2023-24, EPFO settled claims of Rs 2,632.29 crore.

"Several steps are being taken to raise awareness and improve the utilization of EPFO funds by employees through multimedia activities like educational videos, webinars, social media, print media, etc," Karandlaje added.

To another question, she said five states are yet to pre-publish draft rules under three codes on Industrial Relations, Social Security and Occupational Safety while four states or Union Territories have also not pre-publish draft rules on Code on Wages, 2019.

"Several meetings were held to facilitate them to frame their respective Rules within the ambit of Labour Codes," Karandlaje said.