Firms not enrolled with EPFO can do so with just Re 1 fine under Amnesty Scheme

[vc_row][vc_column][vc_column_text]In a move that will encourage many micro, small and medium enterprises (MSMEs) to enrol their employees as members under the Employee Provident Fund (EPF) scheme.

The EPFO has launched a 3-month campaign from Jan 1 for an amnesty scheme under which Employers can get themselves enrolled against payment of a minimal damage fee of Rs 1 per year of default.
Additionally, if the employee wasn’t enrolled earlier and his/her share of contribution was not deducted from salary, the employer company had to pay this sum also in addition to the past defaults of its own contribution. Now under the amnesty scheme, only the employer’s contribution has to be deposited.

The companies having 20 or more employees are required to mandatorily enrol those employees under the EPF scheme who have a salary of up to Rs 15,000 per month.

The EPF scheme is optional for those drawing a higher salary. Meanwhile, once an employee opts for the scheme, he or she cannot opt out.

Both the employer and employee are required to contribute 12% per month towards EPF against the employee’s basic salary plus dearness allowance.

However, under the amnesty, interest at the rate of 12% on the amount due for delayed deposit of the contribution will be payable for the period of delay.

This amnesty scheme, which comes into force from January 1, is open until March-end.[/vc_column_text][/vc_column][/vc_row]