EPFO Launches Progressive Amnesty Scheme: Empowering Employers for Compliance

The EPFO has approved an amnesty scheme allowing employers to deposit past provident fund dues without penalties, fostering voluntary compliance. This initiative aims to extend social security, encourage formalization, and aid employment generation. An amendment for better financial benefits and a new redemption policy were also approved.

The Employees' Provident Fund Organisation (EPFO) on Saturday launched an amnesty scheme designed to facilitate compliance by employers, allowing them to deposit unpaid provident fund dues sans penalties. Aimed primarily at encouraging voluntary compliance, the scheme promises no legal repercussions for employers willing to rectify past under-compliance.

Headed by Labour Minister Mansukh Mandaviya, the Central Board of Trustees recommended the EPFO Amnesty Scheme 2024 for government approval. This new initiative seeks to broaden social security coverage, rebuild trust among employers, and promote workforce formalization, crucial for the successful implementation of the Employment Linked Incentive Scheme introduced in the FY25 budget.

Additional measures approved include an amendment to the EPF Scheme, enhancing interest payments, and modernizing bank empanelment criteria. The board has also sanctioned a redemption policy for ETF investments to boost income for the EPF Scheme's Interest Account. The auto claim settlement facility limit has been increased, aimed at benefiting members seeking advances for housing, marriage, and education.

(With inputs from agencies.)