In a recent development aimed at bolstering compliance with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the Ministry of Labour and Employment has introduced the Employees’ Pension (Third Amendment) Scheme, 2024. Effective immediately upon its publication in the Official Gazette, this scheme brings forth crucial changes to ensure timely contributions by employers towards the Employees’ Pension Fund. This notification was published on June 14, 2024.
Under the amended Employees’ Pension Scheme, 1995, paragraph 5(1) now stipulates that employers failing to remit contributions or any other statutory payments are liable to pay damages. Specifically, employers in default will be subject to a penalty of one percent of the arrears per month or part thereof. This measure, authorized by the Central Government, aims to deter defaults and enhance adherence to financial obligations mandated by the Act.
By enforcing stricter penalties, the government aims to safeguard employee interests and strengthen the pension framework, thereby promoting a more secure retirement for all covered under the scheme.
