Recent Amendments to the Employees’ Pension Scheme, 2024

The Ministry of Labour and Employment has released notifications dated 14th June 2024, which announce the revised rates of damages applicable to employer defaults under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. These amendments, effective from 14th June 2024, specify that damages for defaults in payment of contributions, charges, or transfer of accumulations occurring on or before 13th June 2024 will be governed by the previous provisions. Additionally, the Information Systems Division has been tasked with updating the MIS and application software to incorporate these changes. The new rate for damages, as outlined in the amended Employees’ Pension Scheme, 1995, is set at one percent of the arrears per month or part thereof. All officers authorized to recover damages are required to take necessary action as per the revised rules. This notification was published on 28/08/2024.