The EPFO has launched the EPF Amnesty Scheme campaign from January 1st where employers will get amnesty and pay just Re 1 as damages for each year of default. This campaign by the EPFO aims to get all eligible companies registered under the Provident Fund scheme and extend the benefits of this social security scheme to all workers.
An Ideal Leave Policy facilitates a good work-life balance for your employees ensuring that when they do come into work again they are refreshed and motivated.
The EPF Amnesty Campaign was launched on January 1st, 2017 and was planned to be initially running till March 31st, 2017. The EPFO has now extended the scheme till June 31st 2017.
Although creating a leave policy for your employees is an integral part of the employee engagement policy; it is often the most ignored.
How can the EPF Amnesty help your Company?
If you are organization with more than 20 full-time employees, you are required to be registered under the Employee Provident Fund Scheme. The Employee Provident Fund scheme requires both the employee and employer to both contribute 12% each of the employee’s basic salary (plus dearness allowances, if any) into the employee’s EPF account.
Thus, if your employee size is above 20 and you haven’t registered for PF then there would be penalties and interest rates levied over the defaulted amount, which would be effective from the date on which your company crossed 20 employees. Based on the effective date as well your current employee count, this liability can vary from a few thousand rupees to multiple lakhs. With the EPF Amnesty Scheme, the penalties would be halved and help you stay compliant without burning through your pockets.
What are the Benefits available under scheme?
The goal of EPF Amnesty Scheme aims to have as many companies registered for the PF who haven’t already.
The following incentives are available to employers making a declaration under the scheme-
- The Employee’s share of contribution shall be waived off if the employer declares that no deductions have been made.
- The damages to be paid by the employer in respect of employees for whom declaration has been made under this campaign shall be Rupee 1 per annum.
- No administrative charges shall be charged from employers in respect of the contribution made under the declaration.
You can read more about the EPF Amnesty Scheme here.
How can I register for EPF Amnesty?
If you are company with more than 20 employees and you haven’t registered under PF then you can do so under the EPF Amnesty Scheme. If you are looking to avail the benefits of the scheme you can register with Quikchex as a customer and we can help you stay compliant with PF and other compliance measures, as we do for over 350 customers across Pan India.