In latest days, Byju’s has been within the headlines for all of the flawed causes. the Bengaluru-based ed-tech startup confronted flak for firing folks in giant numbers, and never paying its staff the provident fund for months. As per media studies, Byju’s has cleared 97% ( ₹123.1 crore) of dues after the EPFO probe into delayed PF funds. Regardless that Byjus has paid PF now this is what occurs if the corporate would not pay.
What do EPFO guidelines say?
The EPFO pointers mandate that for every month, employers should credit score provident fund funds by the fifteenth of the next month within the account of staff.
What occurs when an employer delays EPF contribution?
To keep away from paying penalties and curiosity, employers should ensure Worker Provident Fund (EPF) contributions are made on time. In response to a ruling made by the Supreme Court docket in February 2022, an employer is required to cowl damages if an worker’s Workers’ Provident Fund (EPF) contribution is delayed.
“Employers defaulting on contributions are liable to pay Damages & Curiosity on the quantity due,” mentioned EPFO. The retirement fund physique additionally specified the speed at which damages are lined resulting from delayed contributions.
0-2 months 5%
2-4 months 10%
4-6 months 15%
Greater than 6 months 25%
What can staff do if EPFO contribution is delayed?
“Damages are restricted as much as 100 per cent of the quantity in arrears. The Fund added that 12 per cent annual curiosity is utilized on the quantity due for your entire interval of delay,” EPFO knowledgeable through a tweet.
Tax and funding professional Balwant Jain mentioned that if there may be any delay in funds by employers, people can file a criticism with the EPFO in opposition to the employer.
“An inquiry can be initiated by the EPFO in opposition to the employers,” mentioned Jain.
EPFO can get well the broken quantity by charging curiosity on the late deposit as effectively, he added.
Quantity paid by the worker and employer in EPF
An employer is liable to pay a easy curiosity on the charge of 12 per cent every year, in accordance with part 7Q of the Worker’s Provident Funds and Miscellaneous Provisions Act, 1952.
The best way to verify whether or not your employer has deposited EPF contribution
-Workers can verify whether or not their PF contributions are deposited by logging into the EPFO portal.
-EPFO additionally sends SMS alerts of the fee made within the PF account.
Based by former instructor Byju Raveendran over a decade in the past, Byju’s, which was as soon as valued at $22 billion, has missed deadlines for submitting its monetary outcomes and paying curiosity on a mortgage.
Up to date: 28 Jun 2023, 01:07 PM IST