EPF new rule: Retirement fund body reduces penal charges for delayed contributions by employers

The Employees' Provident Fund Organization (EPFO) has reduced penalties for delayed deposits of provident fund, pension, and insurance contributions by employers. Under the new rules, defaulters will face a penalty of 1% per month (12% annually), down from a maximum of 25% annually. Previously, penalties ranged from 5% to 25% depending on the duration of default. This change aims to ease financial burdens on employers with prolonged defaults. Penalties for defaults under four months remain unchanged. Employers must still submit returns to EPFO by the 15th of each month; delays beyond this constitute default under the revised guidelines issued by the Ministry of Labour.