India

November 2021

RESPONSE TO COVID-2.0
Delivering social security during the pandemic

Employees' Provident Fund Organisation

Ministry of Labour and Employment, Government of India
EMPLOYEES' PROVIDENT FUND ORGANISATION

KEY HIGHLIGHTS

3rd
largest pension
fund globally in 8th
terms of largest sovereign
membership pension fund in
terms of assets
under ₹15690 bn
management
AUM ($209 bn)

67
million
members
7.1
million
Over 37
pensioners
million claims
settled annually

1
 PANDEMIC PREPAREDNESS

As Covid struck, there was a sudden disruption of services as face-to-face interactions became
infeasible for all Service delivery organisations across the globe. Employees' Provident Fund
Organisation (EPFO) owing to the sheer size of its membership, the complexity of the scale of work,
and also the fact that most of the subscribers come from a socio-economically disadvantaged
section where digital penetration and literacy is limited, this challenge was even greater. But the
Covid thrown challenges offered a rare opportunity to the EPFO, to present its disaster
preparedness through demonstration effect and let the evidence speak louder than claims.

The foundation of this preparedness was laid in the years of hard work the organization invested in
creating a digital architecture and developing expertise in the unique IT-based solutions to cater to
the emerging needs of crores of its members. The success of online services that EPFO intended to
offer mainly depended on the identification of the members through foolproof documentation of
know your customer (KYC) in the system.

Over the years EPFO had worked hard and completed KYC with Aadhaar (a biometric-based
verifiable 12-digit identification number issued to residents of India) seeding for over 72.3 million
members. By the time the pandemic struck, it had already powered its digital system in a way that
enabled its members to avail multiple services from its e-platform with ease. Therefore EPFO was
ready to face the challenge of servicing its members efficiently when economic pressures mounted,
and ripple effects of income cuts, job losses started spreading and people reached out to dip into
their rainy-day funds.

In the initial phase of the spread of the pandemic when there was widespread lockdown, offices of
EPFO across the country have remained operational to serve its members. It was not a mean task in
the absence of public transport which had been fully suspended under the lock-down, but
thousands of EPFO employees, braved the infection risk and logistical challenge to show up in the
offices across India. Amid the raging pandemic as most offices, even shops lay abandoned with
‘closed’ signage hung, doors of EPFO offices and its digital services said “We are open and ready to
serve”.

2
 PERFORMANCE
DURING COVID-19

3
 EPF CLAIM SETTLEMENT

COVID-19 WITHDRAWAL
4 75

3
50

25
1

0 0
20 1

20 1

20 1

20 1

20 2

20 1

20 1

20 1

20 1

20 2

2
-2

-2

-2
Q 20-

0-

Q 20-

Q 21-

Q 20-

0-

Q 20-

Q 20-

1-
20

21

21
2

2
20

20
1

2
Q

Q
Number of claims (million) Amount disbursed (₹billion)

12.1 million ₹282.88 billion

($3.77 billion)
Members benefitted Amount disbursed

OTHER THAN COVID-19 CLAIMS

10 400

7.5 300

5 200

2.5 100

0 0
20 1

20 1

20 1

20 1

20 2

20 1

20 1

20 1

20 1

20 2

2
2

-2

-2
Q 20-

Q 20-

0-

Q 20-

Q 21-

Q 20-

0-

Q 20-

Q 20-

1-
21

21
2

2
20

20
1

2
Q

Number of claims (million) Amount disbursed (₹billion)

34.2 million ₹1420 billion

($18.9 billion)
Members benefitted Amount disbursed

4
 PENSION & INSURANCE CLAIM SETTLEMENT

PENSION-FORM 10D EDLI-FORM 5IF

100 25

20
75
15
50
10
25
5

0 0
20 1

20 1

20 1

20 1

20 2

20 1

20 1

20 1

20 1

20 2

2
-2

-2

-2
Q 20-

0-

Q 20-

Q 21-

Q 20-

0-

Q 20-

Q 20-

1-
20

21

21
2

2
20

20
1

2
Q

Q
Number of claims (thousands) Number of claims (thousands)

0.33 million 0.065 million

Members benefitted Members family
benefitted

WITHDRAWAL BENEFIT- FORM 10C

1.5 25

20
1
15

10
0.5
5

0 0
20 1

20 1

20 1

20 1

20 2

20 1

20 1

20 1

20 1

20 2

2
2

-2

-2
Q 20-

Q 20-

0-

Q 20-

Q 21-

Q 20-

0-

Q 20-

Q 20-

1-
21

21
2

2
20

20
1

2
Q

Number of claims (million) Amount disbursed (₹billion)

5.16 million ₹125.55 billion

($1.67 billion)
Members benefitted Amount disbursed

5
 GRIEVANCE REDRESSAL

EPFIGMS
0.5 0.5

0.4 0.4

0.3 0.3

0.2 0.2

0.1 0.1

0 0
20 1

20 1

20 1

20 1

20 2

20 1

20 1

20 1

20 1

20 2

2
-2

-2

-2
Q 20-

0-

Q 20-

Q 21-

Q 20-

0-

Q 20-

Q 20-

1-
20

21

21
2

2
20

20
1

2
Q

Q
Total number of grievance (million) Total grievance redressed (million)

2.05 million 92%

Grievance redressed Redressal rate

PERIODICITY OF REDRESSAL OF GRIEVANCE

50

40

30 64.7%
Percentage

Redressed within 07
20 days

10
91%
Redressed within 15
0
days
ys

ys
ys

ys

ys
Da

Da
Da

Da

Da
30
3

15

31
<=

to

to

to

>
4

16

6
 INITIATIVES
DURING COVID-19

7
 DISASTER PROOFING

EPFO IS NOW DISASTER PROOF

Auto-claim Multi-location claim

settlement settlement

No human Rationalisation
intervention of workload

KYC compliant Location

accounts Independent
settlement

Shut down on account of any calamity or epidemic

EPFO shall continue to serve its members

Multi-location work model: The increase in speed of settlement and productivity

of manpower was also a product of an ingenious and out-of-the-box solution to
redistribute the workload of claim settlement across its 138 regional offices
completely alleviating the dependence on any particular office for delivery of services.
The Covid induced lockdown threw a challenge to continue delivery of services, that
too at a faster pace with fewer staff.

The digital architecture at EPFO along with a motivated workforce ensured that claims
from metro cities, that were receiving a massive number of settlement applications
were redistributed to offices in tier II and tier III cities where Covid hadn’t penetrated.
This work rationalization liquidated claim pendencies.

8
 DISASTER PROOFING

ENABLING WORK FROM HOME

Task
split

Data allowed Data allowed

over Internet over intranet

Information
Exchange

Call, WhatsApp, email

50-85% staff at
15-50% staff at
home
office

Task
complete

Enabled work from home (WFH): With lockdown in place and strict social
distancing norms, only 15 to 50 percent of staff could attend office and the rest
worked from home. This necessitated enabling certain work that could be carried out
from home. The task was accordingly split and some data was allowed over the
internet in a secure manner for staff working from home. Teams were formed of staff
working from the office and those working from home. They worked in collaboration,
exchanged information, and completed the task.

This strategy proved to be a game-changer in delivering services to members in a

seamless manner

9
COVID-19 ADVANCE
The Provident Fund Scheme was amended to allow for
Covid-19 non-refundable advance of upto 75% of
members' total PF contributions or a sum of their
three months wages, whichever was less.

Distress to the members on account of disruption in the economic activity

amidst lockdown led EPFO to promptly recognise the need for an advance that
would help its members to sustain themselves during the difficult times.

Members could directly file their claims on the EPFO website or through an
oft-used government app named UMANG, which is essentially a single
platform for availing multiple public services.

Faster servicing of claims was the key for members as for many of them even
basic survival became a challenge during the job-insecure context of Covid.
EPFO rose to the occasion and Covid-19 advances were settled on an average
within 72 hours with a 50 percent increase in speed of settlement compared
to the past.

Increase in speed of Average manpower

settlement of claims productivity

50% 87%

Number of members Total amount withdrawn

made Covid-19 as Covid-19 advance
withdrawals
₹282.88 billion
12.1 million ($3.77 billion)

10
 Aatmanirbhar Bharat Rozgar Yojna (ABRY)

Incentivise employers for giving employment to new

employees and re-employing persons from low wage
bracket who have lost jobs during the pandemic

Central Government to pay both the employees' and employer's share of

contribution or only the employees' share, depending on the employment
strength of the establishment.

Commenced from 1st October 2020 and shall remain open for registration of
eligible employers and new employees up to 31 March 2022.

Establishments employing a minimum of 2 new employees (for less than 50

employees), minimum of 5 new employees (for more than 50 employees) to
get the incentive.

Establishments up to 1,000 employees both employer's and employee's

share to a maximum of 24% of wages while establishments with more than
1,000 employees only employees' share of contribution subject to a
maximum of 12% of wages to be paid by the Government.

Number of estblishments Amount contributed by

benefitted Government

0.106 million ₹18.453 billion

Total number of new Total number of re-

employee beneficiaries employed beneficiaries

2.88 million 0.418 million

(Figures till Sept 2021)

11
Pradhan Mantri Garib Kalyan Yojna (PMGKY):
Relief to small enterprises and low wage earners

For enterprises with 100 or less employees where 90%

or more of such workers earned less than Rs.15,000
every month, government paid the entire employees'
and employers’ contribution (24% of wages) from April
to August 2020.

As small enterprises---particularly those which had a large share of low-wage

workers on their rolls---were highly vulnerable to economic challenges thrown
up by the pandemic. A timely scheme like this acted as an incentive for
employers to prevent disruption in employment.

This initiative along with the Covid-19 advance was part of the Prime Minister’s
comprehensive package to take care of the welfare of the less privileged
under a programme called PMGKY (Pradhan Mantri Garib Kalyan Yojna).

Number of establishments Number of low wage

availed benefits employees benefitted

0.26 million 3.88 million

Total amount made available by Government

₹25.67 billion
($.34 billion)

12
 RELAXATION IN PAYMENT OF CONTRIBUTIONS

Businesses and enterprises were facing a liquidity crunch to pay statutory while
retaining the employees on their rolls. To incentivise and prioritise payment of
wages across establishments, the dates for official filing of returns and payments
of contributions were extended for enterprises of all types-big and small.

PENAL DAMAGES FOR DELAYED REMITTANCE WAIVED

Employers were facing difficulty in a timely deposit of contribution during the

lockdown. Delayed remittance of EPF contributions by the employers would
attract penal damages causing an additional financial burden on them. Therefore
to ease this financial burden on the employer it was decided that delay in payment
of contributions due for any period during the lockdown, would not attract levy of
any penal damages.

MORE SERVICES MOVED ONLINE

Members needed to have correct demographic details matching with the KYC, enter
the date of exit from employment for facilitating withdrawals and transfers, submit
nominations for extension of social security benefits to the family and also submit a
tax exemption form to avail of income tax exemption facility. These essential
services were made available online with a document upload facility.

13
REDUCTION IN STATUTORY CONTRIBUTION RATES

The Government as part of the Atma Nirbhar Bharat Package reduced the statutory rate
of EPF contributions from 12% to 10% for a period of three months from May to July
2020. Reduction in statutory rate of contributions meant that the employees' take-home
pay increases and at the same time employer’s liability stands reduced too. It has helped
17.5 million subscribers and about 0.13 million establishments each month to tide over
the immediate liquidity crisis.

FILING OF ELECTRONIC-CHALLAN CUM RECEIPT MADE EASIER

Filing of monthly ECR was separated from payment of statutory contributions

reported in ECR. Returns can now be filed by an employer without the need for
simultaneous payment of contributions which can be paid later after the filing of
ECR. The segregation of return from payment facilitated employers to avail
benefits towards EPF for low-wage employees working in smaller establishments
under the central government scheme.

TIMELY RELEASE OF PENSIONS

EPFO processed pension payments for April 2020 in advance to avoid

inconvenience to pensioners on account of nationwide lockdown. EPFO officers
and staff battled all odds to enable pension disbursing banks to disburse pensions
throughout India. Timely credit of pension was the need of hour and was
accorded topmost priority by EPFO to bring succour to the pensioners during the
Covid-19 crisis.

14
 EPFO POWERS UMANG MOBILE APP

19 Services available on UMANG App

21568 261 Employers
Services Departments ECR payment search

Reach of UMANG Employees/Members

View passbook
File claims & track claim status
UAN activation
E-KYC Services to validate UAN with Aadhaar
Self generation of UAN by employee

88% Pensioners
View Passbook
Update Jeevan Pramaan

General Services
Search EPFO Offices
Still EPFO services account for
Search Establishment
88% of hits on UMANG app Account balance information (SMS)

DigiLocker JPP CSS

EPFO pensioners EPFO is the single EPFO is using over

enabled to store their largest user of the 3.6 lakh common
pension papers Jeevan Praman Patra service centres as
digitally digital touch points

Over 86 % of all Online claim filing, JPP

7.1million pensioners Jeevan Praman Patra submission,
benefitted is filed by EPFO demographic details
pensioners corrections

15
E- Nominations
Assurance of Social Security to members

Aadhaar-based e-nomination is an
initiative to help family members of
Employees' Provident Fund Organisation I care for my
members to avail benefits under spouse, children
and parents
Employees' Provident Fund, Employees'
Pension Scheme and Employees'
Deposit Linked Insurance Scheme on
members death.

Updation of nomination
One can update the nomination anytime
as per need. It is mandatory after
marriage

Documentation and approval

Self deceleration is sufficient. No

documentation or approval is required
from the employer

How to file

Login with UAN on Unified member portal and follow instructions

https://unifiedportal-mem.epfindia.gov.in/memberinterface/

Total E-nominations filed (Till Sept'21)

2.12 million

16
 Outreach Programs

PRAYAAS
This initiative is an endeavour to release pension on the day
of Superannuation.

Webinars are being conducted by field offices, wherein

members who are superannuating within 03 months are
invited. Over 3285 such webinars have already been
conducted.

The purpose of these webinars is to educate the members

of the Employees' Pension Scheme (EPS) 1995 along with 15.9 thousand
Members benefitted
their employers so that they can submit pension claims (Till Sept'21)

complete in every respect and EPFO can issue pensions on

the day of superannuation to such members

WEBINARS BASED NIDHI AAPKE NIKAT

Nidhi Aapke NIkat is a public outreach programme that is

held on the 10th of every month. These programs have been
conducted in an online mode to resolve any outstanding 30.38 thousand
issues with our stakeholders. Additionally, special pension Webinars Conducted

Adalats are also being conducted in both offline and online

mode to resolve grievances of pensioners 0.22 milllion
Stakeholders attended
(Till Oct'21)

17
 RESPONSIBILITY CENTERS

21
ZONAL OFFICES

138 117
REGIONAL OFFICES DISTRICT OFFICES

EPFO HAS A NATIONWIDE PRESENCE

The responsibility centers in these offices reach out to the
clients and ensure extension of the Social Security services

/socialepfo www.epfindia.gov.in @socialepfo

DOCUMENTATION BY

पं डत द नदयाल उपा याय रा ीय सामा जक सुर ा अकादमी

कमचारी भ व य न ध संगठन
म और रोजगार मं ालय
भारत सरकार, नई द ली
PANDIT DEENDAYAL UPADHYAYA NATIONAL ACADEMY OF SOCIAL SECURITY
Employees’ Provident Fund Organizaon
Ministry of Labour & Employment
Government of India, New Delhi
18
 EPFO

PDNASS
PANDIT DEENDAYAL UPADHYAYA NATIONAL ACADEMY OF SOCIAL SECURITY