EPFO: Your Company is obliged to pay your EPF contribution; know your rights!

If you are a salaried employee and your organisation is registered with the Employees’ Provident Fund Organisation (EPFO), then this piece of information will be critical for you. Do you know that your company is obliged to pay your Employees' Provident Fund (EPF) contribution on priority over other debts even if it has become insolvent or has wound up?

As per the information available on Employees' Provident Fund Organisation (EPFO) Website, the answer is "Yes". Your employer will have to pay contributions towards EPFO accounts in priority over his other debts. It is important to know this important rule which gives you a right to claim your EPFO from the company you are working with.

Also the credited amount to a member's account cannot be attached against any liability as the Provident Fund enjoys protection against attachment by any court as per the provisions of Section 10 of EPF and MP Act 1952.

The employer is required to deduct PF contribution of the employees' share before paying the member, his wages.

Any EPFO account holder can easily know if the employer is paying contributions recovered from his wages or not. He can know this from annual PF statement of Account/Member Passbook. EPFO has made it easier for you to check it online if your Universal Account Number is (UAN) activated.

In case, your employer is not depositing contribution he is deducting from your wages, you can escalate it with the EPFO. The laws prescribe for attachment of bank accounts, realisation of dues from the debtor, attachment and sale of properties and even arrest and detention of the employer under different sections of the Indian Penal Code (IPC) and Criminal Procedure Code (CrPC).

A member can also demand for a contribution card of each member in Form 3-A/ECR from the employer.

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There is protection even for the contract employees. It is the duty of the principal employer to ensure that the contractor discharges his liability. The principal employer must allow payment of bills after ensuring that the contractor has enrolled and complied in respect of all contractual employees every month.