EPFO Approves Key Reforms to Improve Compliance and Member Benefits
Amnesty Scheme for Employers
The Employees’ Provident Fund Organisation (EPFO) has introduced an amnesty scheme aimed at encouraging employers to disclose and rectify past non-compliance with EPFO regulations. This initiative provides a penalty-free opportunity for employers to align with EPFO standards.
Investment Guidelines Update
The Central Board of Trustees of EPFO has recommended new guidelines for investments in Public Sector Undertaking (PSU)-sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
Amendment to EPF Scheme, 1952
An amendment has been approved to pay interest to EPFO members up to the date of settlement of claims, addressing a long-standing issue of interest losses during claim processing.
What’s In It for EPFO Members?
• Reduced Grievances: Members will benefit from timely settlement of interest-bearing claims, ensuring they do not lose interest during claim processing delays.
• Optimized Claim Processing: Claims will now be processed throughout the month, reducing pendency and improving resource allocation for quicker resolutions.
What’s In It for HR?
• Compliance Simplification: The amnesty scheme encourages HR departments to reassess and address any past non-compliance without the fear of penalties.
• Employee Trust Building: By ensuring seamless claim processing and interest payouts, HR teams can strengthen employee trust and satisfaction.
• Policy Familiarization: HR must stay updated on the investment guideline changes, which could have broader implications for employee benefits.
Source
Details derived from Times of India.
