Categories: Business

no penalty for late EPF deposit says EPFO



new Delhi. The Employees Provident Fund Organization (EPFO), the institution that manages the retirement fund, has decided not to take any penalty from the companies for not submitting the provident fund contribution on time during lockdown. The government has implemented a lockdown from March 25 to prevent the corona virus epidemic in the country. Due to this, companies are facing cash problems and they are also facing problems in making necessary payments to the Provident Fund. In a webinar organized by industry body PHDCCI, EPFO ​​Central Provident Fund Commissioner Sunil Barthwal said on Friday, "We are not going to take any compensation (penalty) for the delay during the lockdown period." It is part of our attitude to take care of stakeholders, companies, employers, which we are following. ”

The EPFO ​​has the right to recover damages or fines from employers who are unable to submit mandatory PF contribution under the EPF Scheme 1952. Employers are required to deposit the arrears on the salary of the previous month by the 15th of the following month. However, companies are also given an additional time of 10 days for this. The Ministry of Labor said in a statement about this, "The lockdown imposed by the government to prevent the spread of the corona virus epidemic has been prolonged. Apart from this, there have been other problems due to the epidemic. All these have affected establishments covered under the EPF & MP Act 1952 and are unable to function normally and pay statutory contributions on time. "The Ministry said," On time of contribution or administrative fee during lockdown In view of the difficulties faced by the establishments in depositing, the EPFO ​​has decided that such delay will be defaulted due to operational or economic reasons. And should not be considered criminal damage. Penalties should not be imposed for such delays.

This post was published on May 15, 2020 11:49 pm

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