The Employees’ Provident Fund Organisation has urged employers to continue filing monthly electronic challan-cum-return even if the payment of statutory contributions is delayed because of a liquidity crunch on account of the lockdown.

The labour ministry has extended the contributions for March, which are due by April 15, till May 15. Rules mandate contributions for a month be deposited within 15 days of the next month, or else the employers will have to pay a penalty.

An exception has been made for the month of March because of the disruptions caused by Covid-19. While the government is yet to announce an extension for the month of April, EPFO officials are hopeful of the same.

The provident fund body said in a statement that in the current situation, enterprises are not able to function normally and are facing a cash crunch to pay the statutory dues even though they are retaining employees on their rolls.

“Keeping in view the situation and to further ease the compliance procedure under EPF & MP Act, 1952, the filing of the monthly electronic- challan-cum-return (ECR) is separated from the payment of the statutory contributions reported in the ECR,” the EPFO said.

Employers can, therefore, file the ECR without the need of simultaneous payment of contributions, which may be paid later by the employer after filing the ECR.

“The filing of ECR by the employer in time is indicative of the employer’s intent to comply and will, therefore, not attract penal consequences if the dues are paid within the extended time as announced by the government,” said the EPFO.

Around six lakh establishments can now file electronic- challan-cum-return without default by paying salary to about five crore employees, according to labour ministry estimate.

The provident fund body said that filing of ECR in time shall help in credit of employer’s and employee’s share of contributions, totalling 24 per cent of wages in EPF accounts of low wage earners in establishments eligible under Pradhan Mantri Garib Kalyan Yojana package.