EPFO: No penalty for delayed payment of dues during Lockdown

The Employees’ Provident Fund Organisation (EPFO) vide a circular dated 15th May 2020 has decided to provide relief to establishments covered under EPF and MP Act, 1952 from levy of penalty for delayed deposit of dues during lockdown. The delay deposit of dues includes payment of contribution or administrative charges.

This relaxation from paying penalty is granted due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 for which establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time.

EPFO in the circular provides that considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays shall not be treated as default and penal damages should not be levied for such delay.

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