EPFO shifting in the direction of automation; set to rationalise workforce for effectivity


The Employees Provident Fund Organisation (EPFO) goes to undertake an organisational restructuring by way of complete rationalisation of its manpower and area workplaces. This is in maintaining tempo with the technological modifications and evolving nature of social safety in India.

The statutory physique — beneath the ministry of labour & employment — has issued a request for proposal (RFP) to undertake a piece examine by one of many prime 20 National Institutional Ranking Framework (NIRF)-ranked institutes within the class of administration.

The report must be submitted in six months’ time as soon as the examine commences on November 1.

EPFO mentioned it’s shifting extra from forceful compliance to voluntary compliance. And, sooner or later, it is going to be totally ruled by know-how.

“A lot of functions have been centralised and computerised like auto settlement of claims. Manpower is proposed to be utilised more in areas where personal interaction is required. Hence, better utilisation of the workforce has become the need of the hour. These main changes require a rationalisation of the workforce, thereby increasing operating efficiency of the EPFO,” it mentioned within the RFP doc.

EPFO is without doubt one of the largest social safety organisations on the earth with 67 million contributory members in 69 million institutions throughout India. In FY21, it processed 45.8 million claims, 14 per cent of which had been “auto-processed.”

EPFO moving towards automation; set to rationalise workforce for efficiency

With its rising world footprint, EPFO additionally gives social safety advantages to worldwide employees. India is a signatory to bilateral social safety agreements with 20 international locations.

“The organisational structure, the re-deployment and disposition of manpower and the career paths and requirements of officers and staff, among others, need to be taken up as a comprehensive proposal for adoption. This is because the human resource component as well as the organisational structure across the country is prepared to absorb and exploit effectively the technology being envisaged,” EPFO mentioned.

Currently, EPFO has 21 zonal workplaces, 138 regional workplaces, 114 district workplaces, 5 particular state workplaces, one nationwide coaching institute and 5 zonal coaching institutes. It employs 14,484 individuals at the same time as 39.8 per cent of its positions stay vacant.

Last time the EPFO performed a cadre restructuring was in 2016. In this, the essential construction of the organisation and varied departments within the EPFO had been modified.

“As five years have already elapsed since the last cadre restructuring, there has been massive changes in the social security scenario in India,” EPFO mentioned.

The phrases of reference of the examine consists of figuring out and defining every position and key duties and deliverables to remove redundancy within the workforce. This is maintaining in thoughts the present process modifications in IT programs and automation.

The EPF is a compulsory financial savings scheme beneath the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed beneath the aegis of EPFO.

It covers each institution by which 20 or extra individuals are employed and sure different institutions, which can be notified by the central authorities even when they make use of lower than 20 individuals every. The pay ceiling is Rs 15,000 monthly. Persons drawing a pay above Rs 15,000 are exempt or might be enrolled on a voluntary foundation.