EPF Contribution Deadline Change: How Will the Removal of the Grace Period Affect You?

sripadhr
Dear All,

Please find the attached circular issued by the EPFO regarding the removal of the grace period of 5 days for remitting EPF contributions. This change will be effective from February 2016.

Thank you.
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pca
EPFO has been allowing us a grace period of 5 days for the payment of PF. However, now the grace period will not be allowed. The circular dated 8.1.2016 in this regard is attached for reference.

Thanks
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Nanjegowda
Dear HR Leaders,

Please find the enclosed circular issued by the EPFO regarding the removal of the grace period of 5 days for remitting EPF contributions. This change will be effective from February '16.

With thanks and best regards,

Nanjegowda
9945282846
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natraj@sakthimanagement.com
It is sad and unfortunate that the EPFO is suddenly withdrawing the long-established practice of allowing a five-day grace period without any valid reasons. The practice has been in place for over 50 years, and EPFO is not losing any amount by allowing the grace period to be used occasionally by some employers. Even now, due to frequent bank strikes and network problems in banks, many employers are unable to remit the dues on time. EPFO should be strongly represented by all Employers Forums/Associations to ensure that the existing practice is not withdrawn.

Moreover, as pointed out by EPFO, most of the work is being done by employers electronically, and therefore there is no valid reason to collect huge administrative charges from employers. EPFO should also be requested not to collect any administrative charges.

Regards,
N. Nataraajhan
[Phone Number Removed For Privacy Reasons]
Sakthi Management Services
sumitk.saxena
Nice update and also a warning signal to the employer to deposit the contributions on time rather than face legal consequences.

Thanks & Regards,

Sumit Kumar Saxena
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