Where has PF of 10,000 sanitation workers gone?

Published on Aug 10, 2022 11:43 PM IST

30 pvt agencies sourced these workers to the LMC. They took money from the corporation for depositing it into EPF accounts of staff, but did not do so

EPFO officials had sought all related documents from the civic body, but the LMC accounts department was not able to do the needful. Subsequently, EPFO officials reached the LMC office on Tuesday to get these documents. (Pic for representation)
EPFO officials had sought all related documents from the civic body, but the LMC accounts department was not able to do the needful. Subsequently, EPFO officials reached the LMC office on Tuesday to get these documents. (Pic for representation)

LUCKNOW The Employees’ Provident Fund Organisation (EPFO) began investigation into the alleged scam in the PF of around 10,000 sanitation workers of the Lucknow Municipal Corporation (LMC).

Around 30 private manpower supply agencies had sourced around 10,000 sanitation workers to the municipal corporation. They took money from the LMC for depositing it into the EPF accounts of these employees, but did not do so. In fact, some of the agencies had not even opened the EPF accounts of the sanitation workers. After this, municipal authorities reported the matter to the EPFO, said civic officials.

EPFO officials had earlier sought all related documents from the civic body, but the LMC accounts department was not able to do the needful. Subsequently, EPFO officials reached the LMC office on Tuesday to get these documents.

The 10,000 sanitation workers get an honorarium of 308.18 each on a daily basis. The LMC pays an additional 13% as EPF and 3.25% as ESI for every such worker. In all, the LMC pays 16.25% additional amount to the agencies. This means 1502.31 per employee per month is paid to these agencies.

On their part, private agencies also have to add 12% as EPF and 0.75% as ESI every month. But this amount was not deposited into the account of any employee by these agencies. It is said that private agencies had not deposited around 32 crore of employees, which should ideally have been in their EPF accounts, said officials.

Additional municipal commissioner Abhay Pandey said, “The investigations are on and those responsible for cheating the employees will not be spared.”

“Recovery of money from the guilty will be done after the inquiry report,” he added.

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