Reduction in PF Contribution – Get the Details
With a view to bring contribution under Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952 to be paid by employer and employee at par with other savings instruments like the National Pension System, Contributory Provident Fund etc., an agenda item for lowering the rate of contribution from the present 12 per cent to 10 per cent was deliberated in the 218th meeting of the Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) held on 27.05.2017. All employees’ and employers’ representatives and State Government representatives were against reducing the rate of contribution from 12 per cent to 10 per cent.
The details of action taken by Employees’ Provident Fund Organisation (EPFO) against the defaulting establishments to protect the interest of workers covered under the said Act are as under:
(i) Real time default management system has been implemented to reduce remittance default by establishments.
(ii) Action under section 7A of EPF & MP Act, 1952 against the defaulting establishments for assessment of dues.
(iii) Action under section 14B of the Act for levying of damages for belated deposit of dues.
(iv) Action under section 7Q of the Act for levy of interest for belated remittances.
(v) Action for recovery as provided under sections 8B to 8G of the Act.
(vi) Action under section 14 of the Act for filing prosecution against the defaulters before the competent court of law.
(vii) Action under section 406/409 of Indian Penal Code (IPC) against the employer for non-payment of employees’ share of contribution deducted from the wages/salary of the employees but not deposited in the fund.
This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in a written reply to a question in Lok Sabha, today.
EPFO has implemented a real-time default management system to reduce remittance default by establishments.
EPFO can take action under section 7A of EPF & MP Act, 1952 against defaulting establishments for assessment of dues.
Yes, EPFO can levy damages for belated deposit of dues under section 14B of the Act.
Yes, EPFO can levy interest for belated remittances under section 7Q of the Act.
EPFO can take action for recovery as provided under sections 8B to 8G of the Act.
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