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20% of temporary staff may not be able to avail full benefit of PF withdrawal: Indian Staffing Federation

The staffing federation has written to labour ministry last week asking them to re-look into the issue.

, ET Bureau|
Last Updated: Mar 30, 2020, 02.45 PM IST
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NEW DELHI: The Indian Staffing Federation has claimed that 20% of the temporary staff of 3.3 million may not be able to avail the full benefit of provident fund withdrawal option as their PF amount has not been credited into their accounts for as long as six months owing to UAN-Aadhaar mismatch.

As part of the Rs 1.7 lakh crore fiscal package to tide over the economic crisis owing to the outbreak of Coronavirus pandemic, finance minister Nirmala Sitharaman had said employees will be able to withdraw three months of salary or 75% of their kitty, whichever is lower.

The staffing federation has written to labour ministry last week asking them to re-look into the issue.

It is estimated that 6.6 lakh temporary workers with average salary ranging from Rs 18000 to Rs 25000 will be most affected as their provident fund is being deducted every month but not being deposited to EPFO accounts because of the mismatch. Hence the overall kitty of these EPFO subscribers does not reflect the accurate accumulation in their PF accounts.

“EPFO has not allowed remittances to be deposited where UAN-Aadhaar mismatch was found. At least 20% beneficiaries will not be able to receive their dues despite it being collected from them,” Suchita Dutta, executive director, Indian Staffing Federation told ET.

According to ISF, EPFO’s strong stance on making employers liable and not letting them deposit the beneficiary remittance where Aadhaar wasn't matching, a situation beyond employers’ control, will lead to a major loss to the beneficiary in this time of need.

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