In a recent development aimed at bolstering adherence to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the Ministry of Labour and Employment has introduced the Employees’ Provident Funds (Amendment) Scheme, 2024. Effective from its publication date in the Official Gazette, this amendment primarily focuses on reinforcing employer responsibilities concerning fund contributions and accumulations. This notification was published on June 14, 2024.
Under the revised scheme, if an employer defaults in remitting contributions or transferring required accumulations as mandated by the Act or fails to fulfill payment obligations under other provisions or specified conditions, penalties will ensue. The Central Provident Fund Commissioner or authorized officers may impose damages on such defaulting employers. These penalties are set at one percent of the overdue contribution amount per month or part thereof.
This proactive measure underscores the government’s commitment to ensuring timely and accurate fulfillment of employer obligations under the Provident Funds Scheme, thereby safeguarding employee interests and financial security. By imposing stricter penalties, the amendment aims to promote greater compliance and accountability among employers nationwide.
