The government can provide great relief to companies facing economic crisis amid the Corona epidemic. The government is gearing up to provide penalty and interest relief on delay in EPF contributions. This can be decided in view of the poor economic condition of the companies.
New Delhi: The government can provide great relief to companies facing economic crisis amid corona epidemic (Coronavirus). The government is preparing to provide penalty and interest relief on delay in EPF contributions. This can be decided in view of the poor economic condition of the companies. Even though the government has started economic activity under the unlock process, many companies are still not able to make PF contributions because of the Corona crisis. The government wants these companies to first improve their economic condition, regulate payment of employees’ salary. These reliefs will be for only during the lockdown period.
How much does it seem now penalty
Companies would have to pay EPF every month. The penalty on delay in PF payments depends on the duration. These penalties are usually between 5 and 25 cents. In addition to the penalty on delay, the government also charges interest on this dues payment at 12 cents per annum. EPFO had deposited Rs 52.40 crore as interest and penalty from companies in FY18.
6.5 lakh companies to benefit
If the government announces this relief, it will benefit 4.3 crore employees and 6.5 lakh companies. Let’s tell you that 12% of PF contributions of 24 cents are employees and 12% are the company’s share.
Small companies already benefit
Besides, the Central Government is also giving benefits to many small companies under Pradhan Mantri Garib Kalyan Yojana. The central government is making a full PF contribution of 24 cents. These companies are those with a salary of 90 cents less than Rs 15,000. The relief was extended by the government in March for three months, after which it was extended for another three months. The scheme is now coming to an end on August 31.
