The Government of India is working on measures and packages to provide relief to subscribers and employers in the organized sector as the Covid-19 outbreak shuts factories and offices, takes a toll on jobs and impacts livelihoods.
These measures include-
- Waiving off the penalties on late provident fund deposits by employers.
- Doubling of the minimum pension to Rs 2,000.
- Priority approval for all provident fund withdrawal requests under existing provisions of hospitalization, job loss or closure of establishments.
According to a report published in Economic Times, “The government is working on the financial implication of some of the measures under consideration and the announcement could be made this week.”
According to current rules, employers are liable to pay interest of 12% per annum for every day if there is a delay in payment into the EPF account. Besides, there is a penalty of 5-25% per annum for delays ranging from up to two months to more than six months.
“This could be waived to give some relief to employers,” said media reports.
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