EPFO approved new scheme for employers, now you will get more interest – ..
EPFO Big Decision: EPFO, the body that manages the retirement fund, on Saturday approved the waiver scheme for employers. Under this, they will be allowed to deposit the previous provident fund dues without any penalty. Apart from this, amendment in EPF Scheme 1952 has also been approved under which members will be given interest till the date of settlement.
The Central Board of Trustees (CBT), the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), headed by Labor Minister Mansukh Mandaviya, recommended the EPFO Amnesty Scheme 2024 to the central government, the Labor Ministry said in a statement.
The scheme is designed to encourage employers to voluntarily disclose past non-compliance or short-compliance and deposit the dues without facing penalties or legal consequences. A simple online declaration from the employers will be sufficient to avail the benefits of this scheme.
Its purpose is to provide social security benefits
The statement said the scheme aims to provide social security benefits to more employees, restore trust with employers and promote formalization of the workforce. This initiative will help in implementing the employment linked incentive scheme, which was announced in the Budget for FY 2024-25.
Payment of interest till the date of settlement
Meanwhile, the board also approved amendments to the EPF Scheme 1952, under which interest will be paid to members till the date of settlement. As per existing provisions, for claims settled by 24th of the month, interest is paid only till the end of the previous month. Due to this amendment, EPFO members will get more financial benefits and complaints will be reduced.
The Board also confirmed the extension of EDLI (Employee Deposit Linked Insurance) benefits with retrospective effect from April 28, 2024. Under this scheme, an insurance cover ranging from Rs 2.5 lakh to Rs 7 lakh is given to the dependents of the member in the event of death.
