With respect to extension of lockdown in the country, EPFO has decided to postpone the payment of March contributions till May 15. This decision is taken to provide relief to the subscribers of social security schemes run by the Employee Provident Fund Organisation (EPFO).
The March contributions due on April 15 have now been extended to May 15 which is a 30-day grace period allowed to the establishments covered under EPF & MP Act, 1952. The statement released by the Labour Ministry says: “Considering the unprecedented situation created by COVID-19 and lockdown announced by the Central Government from March 24, 2020 midnight onwards to prevent the spread of Covid-19, the due date for filing of Electronic Challan Cum Return (ECR) for wage month March, 2020 is extended up to May 15, 2020 for employers who have paid wages to their employees for March, 2020.”
This decision is adjacent to the objective of Pradhan Mantri Garib Kalyan Yojana to prevent disturbances in the employment as well as ensuring that the employees are paid with their respective salaries to fight the pandemic. Also, the grace period will help companies plan their cash flows better.
The employers laying out the wages for March before May 15 are not just provided with relief of extension of due date for payment of EPF dues but also get to avoid liability of interest and penalty. It was a much needed relief by the PF authorities extended to all the organisations. This extension has been issued with the objective of incentivizing employers to disburse salaries and motivates them to avoid impositioning of penalties and interest.