Categories: Business

EPFO gives big relief, companies will not be fined for delay in provident fund payment

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EPFO not charging penalty from companies for delay in payment of provident fund dues

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 since 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 organization PHDCCI, EPFO ​​Central Provident Fund Commissioner Sunil Barthwal said that we are not going to take any penalty for delay during the lockdown period. This 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 10 days extra time for this.

The Ministry of Labor said in a statement that 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 under the EPF & MP Act 1952 and are unable to function normally and pay statutory contributions on time.

The ministry said that in view of the difficulties faced by the establishments in timely submission of contributions or administrative fees during the lockdown, the EPFO ​​has decided that such delay should not be considered as default and punitive loss due to operational or economic reasons. Penalties should not be imposed for such delays.

This post was published on May 16, 2020 2:08 pm

Content Team

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