EPFO announces major relief for companies, no penalty for delayed deposit

New Delhi: The Employees’ Provident Fund Organisation (EPFO) on Friday introduced major relief to the businesses stating that no penalty can be levied upon them for penalty for delayed deposit of dues throughout lockdown.

The transfer is aimed to ease the compliance norms for 6.5 lakhs EPF lined institutions and save them from legal responsibility on account of penal damages.

“Due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 and other disruptions due to pandemic, establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time,” an official launch mentioned.

Considering the issue confronted by the institutions in well timed deposit of contributions or administrative prices due for any interval throughout lockdown, the EPFO has determined that such delays resulting from operational or financial causes shall not be handled as default and penal damages shouldn’t be levied for such delay.

EPFO mentioned {that a} round concerning this has been issued to Field Offices of EPFO containing directions to the impact that no continuing shall be initiated for levy of penal damages in such circumstances which is out there underneath TAB “COVID-19” on residence web page of EPFO web site.

It could also be recalled that Finance Minister Nirmala Sitharaman on Wednesday (May 13) saying the primary tranche of the Rs 20 lakh crore Atmanirbhar Bharat Package had mentioned that that for the subsequent three months worker provident fund (EPF) contribution can be 10 per cent every for staff and employers as in comparison with the statutory obligation of 12 per cent. The transfer is to extend take-home wage for staff and to offer relief to employers in fee of provident fund.

The authorities has determined to proceed EPF help for enterprise and employees for Three extra months offering a liquidity relief of Rs 2,500 crores, the FM mentioned. Under this new provision, the employers will proceed to pay 12 per cent, whereas staff could have the choice to pay 10 per cent for the subsequent three months.

This will profit practically 3.6 lakh institutions and as many as 72.22 lakh staff may even avail this profit, mentioned FM Sitharaman.

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