Parliament Question: Private Employers’ Non-Compliance with Provident Fund Regulations

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT RAJYA SABHA UNSTARRED QUESTION NO. 90 TO BE ANSWERED ON 29.01.2026 PRIVATE EMPLOYERS’ NON-COMPLIANCE WITH PROVIDENT FUND REGULATIONS

90. SHRI SANJAY SINGH:

Will the Minister of Labour and Employment be pleased to state:

(a) whether certain private sector employers are failing to deposit both the employer’s share and the employee’s share of PF contributions into EPFO account;

(b) if so, the number of such reported cases and the number of grievances received by Government/EPFO on this issue during the last three years;

(c) the details of action taken, including recoveries made, penalties imposed and prosecutions initiated against such employers; and

(d) whether some private sector organisations are diverting PF contributions into trusts outside the direct supervision of EPFO, resulting in employee funds not being credited to their statutory accounts and if so, the details of action taken in this regard? ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) to (c): During the last three years, 6839 grievances were received related to compliance/ coverage/ evasion in the CPGRAM portal. On the reported cases of default, 14,349 inquiries u/s 7A have been initiated.

During this period, EPFO has been able to recover a sum of Rs. 11,897.49 crores. Further, in 1,47,440 cases, penalty have been imposed u/s 14B of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

159 cases have been initiated for criminal breach of trust against such defaulting employers, u/s 406/409 of IPC and u/s 316 of BNS.

(d): No such case has been reported in EPFO. *****