EPFO’S withdraws grace period of 5 days for depositing the dues

The Employees Provident Fund Organization (“EPFO”) grants employers the concession of grace period of 5 days in each month in addition to statutory period of 15 days for depositing the contribution and other dues towards the settlement of provident fund of their employees. Presently due to availability of technological tools available to the employers such as filing through Electronic Challan-cum-Return and remittances of dues through internet banking the time period and process required for calculation of wages and dues of employees has been substantially reduced in view of which the concession of 5 days has outlived its basic purpose and utility. Accordingly, the concession of grace period of 5 days available to the employers for depositing the contribution and other dues has been withdrawn by EPFO vide a circular dated 8th January, 2016 with effect from Employers are now required to pay the contributions & administrative charges within 15 days of close of every month as per the provisions of Employee Provident Fund & Miscellaneous Provisions Act 1952 under 3 Schemes namely Employees’ Provident Funds Scheme, 1952, Employees’ Pension Scheme, 1995 and Employees’ Deposit Linked Insurance Scheme, 1976. EPFO has informed that the dues for the month of January, 2016 are to be paid by 15th February 2016.

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