<p>The Employees Provident Fund Organisation (EPFO) will not levy any penalty for delayed deposit of statutory contributions during the lockdown, as several establishments are "distressed and unable" to function normally.<br /><br />In an official statement, the Ministry of Labour and Employment said the EPFO has issued a circular in this regard to its Field Officers with instructions that no proceeding shall be initiated for levy of penal damages.<br /><br />The step will ease the compliance norms for 6.5 lakhs EPF covered establishments and save them from liability on account of penal damages, it said.<br /><br />"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 and MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time," the statement noted.<br /><br />In a bid to "ramp up" production over the next quarter, Finance Minister Nirmala Sitharaman had on Wednesday announced that statutory provident fund contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. This will provide liquidity of Rs 6,750 crore to employers and employees over 3<br />months.<br /><br />"It is necessary to provide more take-home salary to employees and also to give relief to employers in payment of Provident Fund dues," Sitharaman had said.<br /><br />Besides, the Finance Minister also extended the EPF support for business and workers for three more months under the Pradhan Mantri Garib Kalyan Package (PMGKP) where the government made the payment of 12% of the employer and 12% employee contributions into EPF accounts of eligible establishments. This was provided earlier for salary months of March, April, and May and now it will be extended to June, July, and August.<br /><br />Sitharaman had said that this would provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments and for 72.22 lakh employees.</p>
<p>The Employees Provident Fund Organisation (EPFO) will not levy any penalty for delayed deposit of statutory contributions during the lockdown, as several establishments are "distressed and unable" to function normally.<br /><br />In an official statement, the Ministry of Labour and Employment said the EPFO has issued a circular in this regard to its Field Officers with instructions that no proceeding shall be initiated for levy of penal damages.<br /><br />The step will ease the compliance norms for 6.5 lakhs EPF covered establishments and save them from liability on account of penal damages, it said.<br /><br />"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 and MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time," the statement noted.<br /><br />In a bid to "ramp up" production over the next quarter, Finance Minister Nirmala Sitharaman had on Wednesday announced that statutory provident fund contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. This will provide liquidity of Rs 6,750 crore to employers and employees over 3<br />months.<br /><br />"It is necessary to provide more take-home salary to employees and also to give relief to employers in payment of Provident Fund dues," Sitharaman had said.<br /><br />Besides, the Finance Minister also extended the EPF support for business and workers for three more months under the Pradhan Mantri Garib Kalyan Package (PMGKP) where the government made the payment of 12% of the employer and 12% employee contributions into EPF accounts of eligible establishments. This was provided earlier for salary months of March, April, and May and now it will be extended to June, July, and August.<br /><br />Sitharaman had said that this would provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments and for 72.22 lakh employees.</p>
