Loss-making companies want PF relief

NEW DELHI: Confederation of Indian Industries ( CII) has sought a relief from Employees’ Provident Fund Organization ( EPFO) for loss-making companies that run their own PF trusts.

As per the rule, companies that run their own PF trusts would not get exemption if they are in the red for three consecutive years. Several firms, including a well-known oil company, have urged EPFO to extend the benefit. But, PF officials say, the organization will not accede to the request.

“We have received a representation from CII, and also from several companies. They have argued that though they are making losses for three years, the workers’ monies are safe. However, we have made it clear to all the companies and also to CII that such a request is not in the interest of the workers,” said an official.

As many as 2,775 companies, called exempted establishments in PF parlance, enjoy a special status under which the money from their employees’ provident fund is not given to EPFO, instead invested through trusts formed by the companies. The exemption, however, can be withdrawn if a company makes losses for three years. EPFO suspects that the lossmaking firms may dip into employees’ dues because of financial constraints.