Retirement fund physique EPFO on Thursday allowed employers to file month-to-month PF returns with out making simultaneous cost of dues, giving a reduction to about 6 lakh corporations amid lockdown to fight the COVID-19 disaster.
Presently, the employers are required to file provident fund (PF) returns and make cost of dues concurrently.
The PF returns have particulars about workers’ and employers’ contributions in the direction of the social safety scheme run by the Workers’ Provident Fund Organisation (EPFO).
In the course of the ongoing coronavirus-induced lockdown, companies usually are not capable of perform usually and are going through liquidity points or money crunch to pay their statutory dues though they’re retaining the staff on their rolls, in accordance with a press release by the labour ministry.
Maintaining in view the scenario and to additional ease the compliance process underneath the Workers Provident Funds and Miscellaneous Provisions Act, 1952, the submitting of month-to-month digital challan-cum-return (ECR) is separated from cost of the statutory contributions reported within the ECR, it mentioned.
Now onwards, the ECR could be filed by an employer with none want of simultaneous cost of contributions and contributions could also be paid later by the employer after submitting the ECR, it added.
The change will entail comfort to the employers in addition to the staff coated underneath the Act.
Submitting of ECR by the employer in time is indicative of the employer’s intent to adjust to norms and won’t subsequently appeal to penal penalties if the dues are paid inside the prolonged time as introduced by the federal government.
Submitting of ECR in time shall assist in credit score of employer’s and worker’s share of contributions, totalling 24 per cent of wages by the central authorities, to EPF accounts of low-wage earners in institutions eligible underneath the Pradhan Mantri Garib Kalyan Yojana bundle.
The present ECR knowledge shall additionally assist in coverage planning and determination making for additional reduction to the companies and EPF members adversely affected by the pandemic, it added.
Earlier this month, the EPFO prolonged the deadline for submitting ECR and making cost of PF dues for the month of March until Could 15.
The ECR and PF dues funds for March have been due on April 15. Thereafter, the employers have been to get 10 days’ grace interval for compliance until April 25.