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Only 12 jute mills comply with EPFO shift, unions flag losses to workers

Jute workers’ unions in West Bengal allege that a 2024 tripartite agreement to shift Provident Fund deposits from mill trusts to EPFO remains largely unimplemented, causing financial losses and irregular deductions.

By NES Web Desk

Jan 14, 2026 15:24 IST

Although a tripartite agreement was signed on January 3, 2024, between the state government, jute mill owners' organizations, and workers' organizations to close the jute mills' own Provident Fund trusts in the state and bring workers' deposits directly under EPFO, workers' organizations in the state alleged on Tuesday that it has not been fully implemented even after two years have passed. Twenty-five organizations of jute workers participated in a discussion initiated by EPFO's Additional Provident Fund Commissioner on this day. Senior officials of EPFO were also present. Allegations were also raised that the election process in the trustee boards has been suspended for a long time and the old boards are continuing to work illegally.

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Unions flag lower deductions and stalled trustee elections

It was reported that workers are facing financial losses as 10 percent contribution is being deducted from their salaries instead of 12 percent, keeping jute under the sick industry category. Not only that, representatives of workers' organizations claimed that many jute mills are deducting contribution money from workers' salaries but are not depositing that money along with their own contribution money.

In this regard, Shivprasad Tiwari, member of the Central Board of Trustees and General Secretary of Trade Union Co-ordination Center, said, "After the tripartite agreement in 2024, only 12 jute mills have started depositing workers' PF directly to EPFO instead of their own trusts so far. Thirty jute mills are still not under this coverage."

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He blamed the reluctance of the jute mills in this case. According to him, "The PF trusts have stopped accounting by showing various excuses. As a result, the picture of how much money is due for which worker is also not clear. And without accounting, it is not possible to bring them directly under EPFO." He said that in this situation, he has been warned that third party audits will be conducted in the trusts to calculate dues and penalties and demand notices will be sent.

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