The Employees’ Provident Fund Organisation has reduced the penal charges on employers who default on depositing the provident fund, pension and insurance contribution of their employees with the retirement fund body while making the penal charges uniform irrespective of the duration of default.
As per the notification issued by the ministry of labour on employment on Saturday, damages from the employer will be recovered at the rate of 1% of the arrear of contribution per month or 12% per annum across three schemes vis the Employees’ Pension Scheme (EPS), the Employees’ Provident Fund (EPF) Scheme and the Employees’ Deposit Linked Insurance Scheme (EDLI) under EPFO. The highest charges so far was 25% per annum.
The new provision will be effective from 14/6/2024
From India
As per the notification issued by the ministry of labour on employment on Saturday, damages from the employer will be recovered at the rate of 1% of the arrear of contribution per month or 12% per annum across three schemes vis the Employees’ Pension Scheme (EPS), the Employees’ Provident Fund (EPF) Scheme and the Employees’ Deposit Linked Insurance Scheme (EDLI) under EPFO. The highest charges so far was 25% per annum.
The new provision will be effective from 14/6/2024
From India
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EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf