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Last chance to enroll with PF : 30th June 2017

The Employees Provident Fund Organization had started an enrollment campaign in January 2017. The campaign was till 31.03.2017 to encourage unregistered organization to enroll employees. The campaign provides opportunity to the employers to voluntarily declare employees entitled for coverage during the period 01-04-2009 to 31-12-2016.

The Ministry of Labour & Employment has now extended the scheme till 30th June 2017. The scheme is an attractive opportunity for non-compliant business to get coverage. The salient features of the scheme are :

  1. The scheme covers employee employed during 01-04-2009 to 31-12-2016 but not covered for any reason. Such employees should submit Form – 11 to the employer.

  2. The employer is exempt from paying employee share if such share has not been deducted. Otherwise for the period 12% of wages should be paid as employees contribution and another 12% as employer’s contribution. Now only employer’s share has to be paid

  3. Damages to be paid – Re 1/- per annum only. Otherwise damages @ upto 25% p.a for delays exceeding 6 months has to be paid.

  4. No administrative charges will be collected from the employer. (Administrative charge @ 0.85% during the period)

  5. The amount of PF to be paid as per the declaration should be paid within 15 days. If not then such declaration shall be deemed to be not have made and department may initiate penalty proceedings. Interest is payable for the period of delay @ 12% p.a

  6. The declaration will be deemed to be bondafide and no further inspection shall be conducted.

  7. If inquiry under section 7A is currently underway for example 01-04-2008 to 31-03-2011. Then enrollment under this scheme can be done for the period 01-04-2011 to 31-03-2016 which is the period not covered under inquiry. Also if inquiry  is underway for some employees, the enrollment under this campaign may still be done for the remaining employees.

FAQ – PF Enrollment Campaign

Roshan Thomas, FCA, DISA(ICAI)

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