EPFO announces major relief for companies, no penalty for delayed deposit

Centre has decided to provide relief to establishments covered under EPF and MP Act, 1952 from levy of penalty for delayed deposit of dues during lockdown.

Ministry of Labour and Employment in a statement said that considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, Employees' Provident Fund Organisation EPFO has decided that



such delays will not be treated as default and penal damages should not be levied. 

The Ministry said that a Circular has been issued to Field Offices of EPFO containing instructions to the effect that no proceeding will be initiated for levy of penal damages in such cases.It said, the step will ease the compliance norms for 6.5 lakhs EPF covered establishments.