Read why Byju’s may face EPFO action, says reports
According to sources, Byju’s, the Bengaluru-based ed-tech startup that has recently grabbed news for all the wrong reasons, has been delaying provident fund (PF) employee payments nearly every month since October last year.
Several former employees have also accused Byju’s of failing to deposit the PF component of their wages into their Employees’ Provident Fund (EPF) accounts.
Byju’s hitting the headlines:
According to sources, the corporation has been making PF contributions with a three to four-month lag. For example, the PF contributions for December 2022, January 2023, February, and March were only made on June 19. This money, however, has not gone to everyone.
Only 3,164 employees had their PF contributions credited in April, after a 36-day wait; in May, only 31 workers received their payouts.
The data also suggests that only roughly 10,000-13,000 employees received their PF in January, February, and March. Furthermore, in other situations, the money due in 2020 was only paid this month.
Edtech giant on the matter:
While the country’s most valuable startup has yet to publish a statement, insiders close to the company say the PF delay is a reflection issue,’ and that Byju’s has been making ‘timely’ payments.
According to EPFO requirements, organisations must credit provident fund payments by the 15th of the next month for each month. The employer must bear the costs if a worker’s contribution is late. The delay may also result in a penalty ranging from 5% to 100% of the amount.
Get all the latest news on Indian daily post.
