The Employees Provident Fund Organisation in its press release dated 30th April 2020 has eased the compliance burden on establishments by allowing employers to file monthly electronic challan cum return and make the statutory contributions later.
Currently, the employers are required to file provident fund (PF) returns and make payment of dues simultaneously. Therefore with a view to further ease the compliance procedure under EPF & MP Act, 1952, the creation and filing of monthly electronic-challan cum return (ECR) is separated from payment of the statutory contributions reported in the ECR. The ECR can now onwards be filed by an employer without the need for simultaneous payment of contributions and contributions may be paid later by the employer after filing the ECR.
Filing of ECR in time shall help in the credit of employer’s and employee’s share of contributions, totaling 24% of wages by Central Govt. in EPF accounts of low wage earners in establishments eligible under Pradhan Mantri Garib Kalyan Yojana package.
Filing of ECR by the employer in time is indicative of employer’s intent to comply will not therefore attract penal consequences if the dues are paid within the extended time as announced by the Govt.
Click here to read the Notification.
