PF ECR and Para 26(6) Compliance
The EPFO has introduced a new requirement for generating PF ECR statements effective October 2024 wage month.
The new requirement states:
- Employees contributing more than the statutory PF limit of Rs. 15,000/- per month are marked with a “##” symbol in the PF ECR statement by the Portal automatically.
- Employers must confirm that a Joint Request has been obtained from these employees.
- Without submitting “Agree”, the PF ECR Statement and challan generation won’t be executed.
To ensure compliance, we strongly recommend the following:
- New Joinees: Incorporate the process of obtaining and submitting Joint Requests as part of the onboarding process.
- Existing Employees: Obtain Joint Requests from all employees who have not already submitted them.
- Exiting Employees: Ensure that Joint Requests are obtained from employees who are leaving the organization.
Please note:
- While there are plans to introduce an online process for Para 26(6) compliance, a specific timeline has not been announced.
- Currently, employers are required to maintain physical copies of Joint Requests and submit them to the PF office upon request.
What is Para 26(6) under EPF Act, 1952:
[Para 26(6) Notwithstanding anything contained in this paragraph [an officer not below the rank of an Assistant Provident Fund Commissioner] may, on the joint request in writing, of any employee of a factory or other establishment to which this Scheme applies and his employer, enroll such employee as a member or allow him to contribute more than rupees [fifteen thousand rupees] of his pay per month if he is already a member of the Fund and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund, provided that the employer gives an undertaking in writing that he shall pay the administrative charges payable and shall comply with all statutory provisions in respect of such employee]