Employee’s Provident Funds (Amendment) Scheme, 2020

Ministry of Labour and Employment vide Gazette ID CG-DL-E-28032020-218950 dated 28.03.2020 has issued Employees’ Provident Funds (Amendment) Scheme, 2020 in exercise of the powers deliberated by section 5 read with sub-section (1) of section 7 of the EPF and Miscellaneous Provisions Act, 1952.

Date to which it is applicable: with immediate effect from March 28th, 2020

In the Employees’ Provident Funds Scheme, 1952, in paragraph 68L, next to sub-paragraph (2), the succeeding sub-paragraph shall be introduced, that is:

(3)The Commissioner, or any officer authorized by him, may allow a non-repayable advance from the PF account of a member working in an establishment or factory located in an area declared affected by a pandemic by the appropriate Government. This provision was introduced to provide financial relief during emergencies, and similar updates related to PF benefits and contribution rules can be understood through the EPF Contribution Extension Scheme which helps employees and employers understand extended compliance relief. The advance can be granted on application and is limited to the lower of either the basic wages and dearness allowance for up to 3 months or 75% of the amount credited in the Fund.

Conclusion

Now, this judgement of EPF Scheme is taken in view of lockdown across the country to fight COVID-19, which was declared a pandemic, and therefore employees working in such establishments across India became eligible for the non-refundable advance benefit. Employees and employers also needed to stay updated with various government policies and financial regulations, including the Scheme Employee Choose to Pay Taxes, to ensure proper tax planning and compliance during such challenging times. Furthermore, this scheme stated that officers and staff must process EPF subscribers’ claims promptly so that employees and their family members can receive timely financial relief during difficult situations.

These modifications emphasize the need for compliance with the law on time and dealing with employee benefit claims in an appropriate manner by the employer. As there are changes in the regulations from time to time, it is essential that organizations are able to comply with the provisions of EPF and related labour laws correctly to avoid any penalties and procedural issues. Professional Utilities provides Labour Code Compliance Consulting for Organizations to help firms deal with EPF compliance, modifications, and overall labour law compliance.