Byju’s staff to get their PF dues as company transfers Rs 123 crore to EPFO
Contents News/Article Date: 28th June 2023
Relating to which Act: The Employees Provident Funds & Miscellaneous Provisions Act, 1952;
Penalty under the Act: Whoever, for the purpose of avoiding any payment to be made by himself under this Act [the Scheme, the [Pension] Scheme] or the Insurance Scheme] or of enabling any other person to avoid such payment knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to one year, or with fine of five thousand rupees, or with both].
Applicable to which State: All the States and Establishments to be covered by these Acts
Type: Times News Report
Pertains to: PF registered establishments and members
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And in the current instance: Think & Learn, the parent company of edtech firm Byju’s, has sent the outstanding provident fund amount of its employees from August 2022 to May 2023 to the Employees’ Provident Fund Organization (EPFO). Following the instructions of EPFO, the company has sent the PF amount of its employees. Byju’s sent money to EPFO (Byju’s Transfers Rs 123.1 Crore to EPFO) Sources aware of this development have informed that Byju’s has paid Rs 123.1 crore to EPFO for a period of 10 months. At the same time, has expressed commitment to repay the remaining arrears of Rs 3.43 crore in the next few days.
Subject: Byju’s staff to get their PF dues as company transfers Rs 123 crore to EPFO
Appended is the complete news item
Byju’s staff to get their PF dues as company transfers Rs 123 crore to EPFO
New Delhi | Bengaluru: Think & Learn, the parent company of edtech firm Byju’s, has remitted provident fund dues of its employees for August 2022 to May 2023 to the Employees’ Provident Fund Organisation following a directive from the retirement fund body.
According to people familiar with the development, Byju’s has made a payment of `123.1 crore to the EPFO for the 10-month period, while committing to pay the remaining arrears of `3.43 crore within a couple of days. “EPFO had observed a shortfall in payment with respect to Think & Learn through its digital returns. However, following a directive from EPFO, the compliance has reportedly been made by the establishment up to May 2023 and the remaining compliance is being monitored and verified,” said one of the people.
Several former employees of Byju’s had accused the company of not depositing the provident fund component of their salaries in the Employees Provident Fund (EPF) account despite the same being deducted. This, according to them, led to a breach of trust under the Indian Penal Code.
Under the Employee Provident Fund & Miscellaneous Provisions Act, a company should deposit the provident fund money for a month by the 15th of the next month. Any delay would attract a penal interest of 12% of the dues and damages which could range from 5% to 25% depending on the tenure of a delay from two months to six months, but capped at 100%, along with even prosecution in some cases. Under the Act, employees have the right to file a complaint with the EPFO against the employer for delayed payments. The EPFO system also throws up a list of defaulters on a monthly basis.