EPFO clarification regarding the effective date of the revised rate of damages

The Government of India, earlier, via three separate notifications dated 14^th June 2024, has revised the rate of penal damages to 1% per month, effective from 14^th June 2024, under the three schemes administered by EPFO: the Employees’ Provident Funds Scheme, 1952, the Employees’ Pension Scheme, 1995, and the Employees’ Deposit-Linked Insurance Scheme, 1976. We had circulated an alert about this change on 17^th June 2024.

Now, the Employees’ Provident Fund Organisation, vide circular no. Compliance/Notifications/2024, dated 28^th August 2024, has issued a clarification that the damages on any defaults made up to 13^th June 2024, under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, and associated schemes are to be levied and recovered in accordance with the then prevailing provisions.