Big EPFO relief for companies! Employers can delay Employees’ Provident Fund contributions now

EPFO Alert: Companies can delay the Employees’ Provident Fund (EPF) contribution for more than one month, but they will have to file their ECR on time.

EPFO Alert: In view of the liquidity or cash crunch being faced by Indian businesses due to the ongoing Coronavirus lockdown, which has been continuing now for some seven weeks, the Narendra Modi Government has decided to ease the ECR filing norms for them. Now, companies can delay the Employees’ Provident Fund (EPF) contribution for more than one month, but they will have to file their ECR on time. It will help the business fraternity to fight the liquidity crunch by generating money from within the company. The Labour and Employment Ministry informed about the decision on evening by issuing a press statement.

The Ministry of Labour and Employment statement said, “In the current scenario of Coronavirus lockdown announced by the Narendra Modi Government to control the spread of COVID-19 pandemic and other disruptions, the businesses and enterprises are not able to function normally and are facing liquidity or cash crunch to pay their statutory dues even though they are retaining the employees on their rolls. Keeping in view the above situation and to further ease the compliance procedure under EPF & MP Act, 1952, the filing of monthly Electronic-Challan cum Return (ECR) is separated from Payment of the statutory contributions reported in the ECR.”

The statement went on to add that the ECR can now be filed by an employer without the need of simultaneous payment of contributions and contributions may be paid later by the employer after filing the ECR. The above change will entail convenience to the employers as well as the employees covered under the Act and Schemes.

Filing of ECR by the employer in time is indicative of employer’s intent to comply and will not therefore, attract penal consequences if the dues are paid within the extended time as announced by the Government.

The current ECR data shall also help in policy planning and decision-making for the purpose of bringing further relief to the businesses and EPF members adversely impacted by the pandemic.

The post Big EPFO relief for companies! Employers can delay Employees’ Provident Fund contributions now appeared first on informalnewz.