EPFO issues fresh guidelines for granting exemption to establishments

The Employees’ Provident Fund Organisation (EPFO) has issued a fresh standard operating procedure (SOP).

These SOPs describe the process and proposals of establishments seeking exemptions from the operation of the Employee Provident Fund (EPF) scheme.

INTRODUCTION

Establishments that seek to maintain their own Provident Fund Trusts apply for a grant of exemption under Section 17 of the EPF & MP Act, 1952 (Act).

While exemption for the establishment as a whole is regulated by Section 17(1) of the EPF Act, the exemption for a class of employees is regulated by Section 17(2) of the Act; the enabling provision enshrined in Para 27A of the EPF Scheme, 1952.

This Standard Operating Procedure (SOP) defines the documents, the proper channel, role, responsibilities, and procedures for time-bound processing of the grant of exemption cases.

PURPOSE

This Standard Operating Procedure describes the process through which the proposals of exemptions are to be examined and forwarded with recommendations by the field offices to the Head Office, EPFO.

The Head Office examines and obtains recommendations from its committees and the Central Board to communicate for the consideration of the appropriate Government.

SCOPE

This SOP provides for:

(a) Standardisation of the administrative procedures for Grant of Exemption.
(b) Prescribes the documents, the formats, the channel, and timelines for various scenarios of Grant of Exemption.
(c) Defines mechanism for monitoring, feedback, and stakeholder engagement.

The new procedure contains directions for the establishments, regional offices, zonal offices, and head offices. The fresh SOP provides for the standardization of the administrative procedures for the grant of exemption.

Establishment

1. To formulate the Trust rules in adherence to the conditions of Exemption.
2. To apply in a standard format with due signatures and necessary details, undertakings, and certified copies of the requisite documents.
3. a) To apply for exemption in accordance with prescribed guidelines to the appropriate Government.
   b) To prepare the comparative statement of benefits in the prescribed
   proforma.
4. To reply to the queries raised by RPFC when the process of scrutiny of
   application is underway.

The official SOP and procedures can be read here.