EPF account deposit will be delayed due to the pandemic and here’s how it will affect you

Due to the pandemic outbreak, everything is getting delayed. And one more thing that is suffering from it is your EPF account deposit. If you don’t find any deposit made, it will be due to the outbreak. According to the EPFO rule, all the employers are required to deposit the provident fund due on salaries by the 15th of next month and if the grace period of 10 days is over and still there is no money, the employers will be penalised.

But since it is a tough time for all of us, the retirement fund body has issued a letter saying that there will be no penalty charged for any delay in depositing the provident fund.

The letter reads- “Considering the difficulty faced by the establishments in timely deposit of contributions during the period of lockdown due to operational and economic reasons, it is evident that such delays are without mens rea (intention) of the employer,”

So if you want to make any withdrawal of your EPF fun, then it will not include your latest deposit since there will be a delay in depositing the funds. Also, you only can withdraw the less of the two amounts,

1- That should be less than your basic salary and dearness allowance for three months.

2- less than the 75% of the amount standing to member’s credit in their EPF account.

So if you are planning to make any withdrawal, please keep these things in your mind before you check the balance and withdraw the money for your own use. These guidelines are issued by the law bodies so it is not in your hands to change them or request for any kind of allowance for the same.