CBSE schools registering with EPFO to benefit teachers, staff

Vinod Kakumanu
May 11, 2023, 10:02 a.m.

Teachers are more likely to stay with a school that offers them financial security and stability during post-retirement years.

In a recent directive announced by the Employee Provident Fund Organization, a statutory body under the Ministry of Labour and Employment, Govt. of India, all CBSE-affiliated schools are now mandatorily required to register themselves with EPFO. The new norm is said to provide employee provident fund benefits to teachers working at small or mid-level schools located in rural areas and functional for three years or more, even without a minimum of 20 employees.

By registering with EPFO, schools could ensure that their employees receive retirement benefits like provident fund, pension, and insurance.

This announcement is not only mandatory for government teachers. Now even private schools are required to contribute 12% of the employee’s basic salary plus dearness allowance towards the employee’s EPF account, while the employee contributes an equal amount. In addition, employers are required to contribute 0.5% of the employee’s basic salary towards the Employees’ Deposit Linked Insurance scheme, providing life insurance cover to the employee.

It is important to note that the benefits of PF amount may vary depending on the specific nature of the job and recruitment type such as part time or contractual teachers.

With this new scheme, teachers are more likely to stay with a school that offers them financial security and stability during post-retirement years as they will be provided a corpus of savings to manage their financial needs. This is also likely to bring job satisfaction among teachers and improve the overall academic environment of school.

This mandate also aims to improve the compliance of school authorities with PF regulations and penalise the defaulter for non-compliance. Thus, teachers and school staff could now reach out to the relevant government authorities such as the Ministry of Labour and Employment or the EPFO office, if a CBSE school is not following the labour laws regarding PF contributions or any other employee benefit.

By making school registration with EPFO mandatory, compliance awareness among schools from remote areas in the country are likely to grow, leading to accountability on their part.