The Employees provident fund organization “EPFO” (Ministry of Labour and Employment introduced certain amendments to the following schemes,
- Employees’ Provident Fund Scheme – 1952 “EPF Scheme 1952”
- Employees’ Pension Scheme – 1995 “EPS Scheme 1995”
- Employees’ Deposit Linked Insurance Scheme – 1976 “EDLI Scheme -1976”
The Amendment has revised the rate of damages applicable to employers in case of employer paid the contribution delay to the above following schemes.
As per the amendment, previous rate of damages was capped at 25% for a delay of over 6 month and could not be imposed beyond 25%
The amendment has now removed this upper limit with effect from 14th June 2024, the rate of damages is 1% per month, accordingly in case the period of default exceeds 25 months, damages imposed may also beyond 25%
Kindly find the official EPFO notification below
Thank you