BPOs Come Under PF Bodys Net: Government

Business process outsourcing (BPO) and knowledge process outsourcing (KPO) firms are covered by the Employees' Provident Fund Organisation (EPFO), Parliament was informed on Monday.

"BPOs and KPOs deal with supply of manpower services and are covered under the Schedule (I) as establishments rendering expert services such as supplying of personnel, advice on domestic or departmental enquiries, special services in rectifying pilferage, thefts, and pay roll irregularities, to factories and establishment," Minister of State for Labour Vishnu Deo Sai said in a written reply to Lok Sabha.

According to the statement, the Employees' Provident Funds and Miscellaneous Provisions Act 1952 applies to all those industries which are notified in Schedule-I to the Act and class of establishments notified by the government from time to time.

At present, there are 187 industries and classes of establishment to which the EPF & MP Act applies, the minister added.

It was also informed that a proposal for deletion of the schedule-I coverable under EPF & MP Act has be received from the EPFO which is under consideration of the government.

"There is need to junk the Schedule-I and there should be negative list of sector which would not be covered by EPFO in organised sector," a senior EPFO official said.

Elaborating further, he said, "Sometimes firms contend that they don't fall under the category of industries in Schedule-I. Therefore it is appropriate to have an exclusive lists of sectors which would not be covered under the Act."

Meanwhile, replying to another question he informed that there was Rs 26,496.61 crore lying in the inoperative PF accounts with EPFO as on March 31, 2014.

All those accounts are classified as inoperative accounts where contributions have not been received for 36 months continuously by EPFO. But all such accounts have definite claimants.

The minister also said the government is notifying the minimum monthly pension of Rs 1,000 under the Employees' Pension Scheme-1995.