Employers can deposit PF dues sans penalty

The board also approved an amendment to the EPF Scheme, 1952, under which interest will be paid to members up to the date of settlement

NEW DELHI: Retirement fund body EPFO on Saturday approved an amnesty scheme to encourage compliance by employers, allowing them to deposit past provident fund dues without any penalty.

Central Board of Trustee (CBT), the apex decision-making body of Employees Provident Fund Organisation (EPFO), headed by Labour Minister Mansukh Mandaviya on Saturday recommended the EPFO Amnesty Scheme 2024 to the central government, a labour ministry statement said.

The initiative is designed to encourage employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties or legal repercussions, it said.

A simple online declaration from employers will be sufficient to avail the scheme benefits. By providing a limited window for voluntary compliance, the scheme aims to extend social security benefits to more employees, rebuild trust with employers, and promote formalisation of the workforce, it stated.

The scheme will help in the implementation of Employment Linked Incentive Scheme, which was announced in the FY25 budget to foster employment generation and incentivize formalization of jobs in the economy.

According to the statement, several small establishments (under MSME sector or otherwise) may wish to avail of the benefits under the ELI Scheme but would be worried in enrolling under EPFO. This amnesty scheme would provide them the confidence to enrol without any fear or additional financial burden.