EPFO relief for 650,000 employers: no penalty for late EPF deposits

Under existing rules, once companies file their returns, known as ECR, they must also subsequently submit the EPF payments of employees at one go. Not doing so attracts a penalty

In what may come as a relief to formal sector companies, the Employees’ Provident Fund Organisation (EPFO) on Friday decided not to penalise employers for delay in depositing provident fund (PF) dues during the lockdown. It also clarified that companies will get the benefit of a lower EPF contribution regime, as announced by finance minister Nirmala Sitharaman.
 

This is part of the economic package to tackle Covid-19.
 

“Considering the difficulty faced by establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons