FISME Flags Persistent ESI & EPF Portals Issues Impacting MSME Compliance, Seeks Govt Intervention

FISME Flags Persistent ESI & EPF Portals Issues Impacting MSME Compliance, Seeks Govt Intervention

New Delhi, Mar 25 (KNN) The Federation of Indian Micro and Small & Medium Enterprises (FISME) has raised concerns over recurring technical and operational issues in key government digital platforms, particularly those managed by the Employees’ State Insurance Corporation (ESI) and the Employees’ Provident Fund Organisation (EPFO), which continue to pose challenges for micro, small and medium enterprises (MSMEs).

These portals play a critical role in ensuring statutory compliance. However, MSMEs report frequent disruptions that often lead to delays in filings and increased compliance burden.

Common issues highlighted include slow website performance during peak working hours, difficulty in loading or refreshing pages, and delays in receiving one-time passwords (OTPs), sometimes rendering them invalid before use. Frequent system updates and unpredictable portal behaviour have also been cited as causes of operational disruptions.

Concerns Over Maintenance and Communication

Businesses have pointed to instances of prolonged downtime without prior notification. For example, the EPF portal reportedly faced disruptions between March 5 and March 10, even ahead of a scheduled maintenance on March 15.

Stakeholders have also raised concerns about maintenance activities being carried out during working hours instead of non-business hours, affecting timely compliance. 

Additionally, communication from authorities is perceived as largely one-sided, with limited response to queries, complaints, or suggestions submitted by employers.

Changes in Filing Systems

On March 11, changes were introduced to the Electronic Challan cum Return (ECR) system, a mandatory monthly filing mechanism for EPFO-registered employers.

While the system earlier provided employee-wise contribution details, users report that only summary data is currently available. According to the portal, employee-wise data was to be released shortly; however, no information has been provided to date. This has added to compliance-related uncertainties for employers.

Operational Gaps at Field Level

Concerns have also been raised regarding inconsistencies between digital and physical processes at certain EPFO offices, particularly the Jhilmil branch. 

Despite the government’s digitisation shift, visitors report being asked to submit physical documents, including for digital signature verification. Limited awareness among some field-level staff about updated digital procedures has further contributed to procedural inefficiencies.

Need for System Improvements

With increasing reliance on digital platforms for regulatory compliance, FISME has emphasised the need for reliable, user-friendly systems. It has called for stronger technical support mechanisms, better communication, and regular stakeholder consultations to address usability issues and improve the overall ease of doing business.

The Central government has repeatedly stressed the need to improve portal functionality and usability, while noting that efforts are underway to address these issues.

(KNN Bureau)

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