The Code on Social Security, 2020 is an important piece of legislation aimed at amending and consolidating the laws relating to social security to extend social security to all employees and workers, whether in the organized, unorganized, or any other sectors and for matters connected therewith or incidental thereto. Our article titled, ‘Changes to the Employees Provident Fund Scheme under the Social Security Code, 2020’ lists out the changes that organizations need to note and ensure compliance with.
Key Changes to the Employees Provident Fund Scheme
- Major reforms in the Employees Provident Fund Scheme include the incorporation of a limitation period of five years for initiation and two years for concluding inquiries.
- Aadhaar-based registration is mandated.
- All establishments having 20 or more workers come under the purview of EPF, earlier it was applicable only on those establishments included in the schedule.
- Systems have been designed to cover the category of self-employed workers or any other category under the purview of the EPF scheme.
- The penalty amount has been increased from 10,000 to 1,00,000 and imprisonment of one to three years is imposed for the deduction of employee contribution from salary and non-depositing.
- Subsequent failure to pay contributions attracts imprisonment of two to five years and a fine of three lakh rupees.
Corrida Legal is equipping companies with processes for ensuring due compliance through audits and implementation and this article provides the precise set of key compliances under the Code on Social Security, 2020. Also read our article The Code on Wages, 2019: Key Compliances
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