The Employees’ Provident Fund Organisation on Wednesday said that any minor delay in the deposit of contributions or administrative charges by EPF-covered establishments will not be treated as default.
Such delays would usually attract penal charges.
In a statement, Regional Provident Fund Commissioner–I Ganesh Kumar Jani said due to prolonged lockdown announced by the government to control the spread of COVID-19 and other disruptions due to the pandemic, establishments covered under EPF & MP Act, 1952 were distressed and unable to function normally and pay the statutory contributions in time.
Considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO had decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay.
A circular had been issued to Field Offices of EPFO instructing them that no proceeding shall be initiated for levy of penal damages in such cases, which was available on home page of EPFO website.
The aforesaid step shall ease the compliance norms for 6.50 lakh EPF-covered establishments and save them from liability on account of penal damages, Mr. Ganesh Kumar said in the statement.