Central Board of Trustees of EPFO gave its go ahead to the Amnesty Scheme 2024
Nov 30, 2024
Synopsis
The EPFO Amnesty Scheme 2024 has been approved, encouraging employers to resolve past compliance issues without penalties and promoting job creation. It will be rolled out with the ELI schemes. The central board of trustees also approved several proposals, including simplifying bank empanelment criteria and extending interest payment benefits for EPFO subscribers.
The central board of trustees of the Employees’ Provident Fund Organisation on Saturday approved the EPFO Amnesty Scheme 2024, encouraging employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties, a move aimed at fostering employment generation under the employment-linked incentive scheme.
Following this, the ministry of labour and employment will hold stakeholder consultation and notify the scheme. However, it is expected to be rolled out with the ELI schemes by the end of this year.
“It is expected that several small establishments (under micro, small and medium enterprises (MSME sector or otherwise) may wish to avail of the benefits under the ELI scheme but would be worried in enrolling under EPFO,” the ministry of labour and employment said in a statement issued after the meeting.
“This Amnesty Scheme would provide the confidence to such employers to enrol without any fear or additional financial burden.”
ET first reported on November 26 that the EPFO is working on an amnesty scheme to encourage formal job creation under the ELI scheme.
The central board of trustees is the highest decision making body of the EPFO. It is chaired by the labour and employment minister and comprises representatives of the employees, employers and the government.
The 236th meeting of the board approved over a half a dozen other proposals including simplification of the criteria for empanelment of banks, both agency and scheduled commercial banks, for centralised collection of EPF contributions. “This initiative will enhance both the ease of doing business and the ease of providing service,” it said.
Besides, the board approved the proposal to pay interest to EPFO subscribers till the claim settlement date unlike the existing provisions under which the claim settled till 24th of the month was entitled to interest up to the end of the preceding month.
“Now, the interest will be paid to the member up to the date of settlement. This will result in financial benefit to the members and reduce the grievances,” it said, adding after this decision, these claims will be processed for the entire month leading to reduced pendency, timely settlement and optimized utilization of resources.
[The Economic Times]
