EPF Compliance After Code on Social Security 2020

Background of the Code on Social Security, 2020

The Code on Social Security, 2020 consolidates multiple labour laws including the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. With its phased implementation, employers raised concerns regarding the continuity of EPF inquiries, recovery actions, wage definitions, and enforcement mechanisms.

To address these concerns, authorities issued a comprehensive FAQ clarifying how compliance and recovery proceedings will operate during the transition period.

Status of Ongoing EPF Inquiries (Section 7A)

• All inquiries initiated before 21 November 2025 shall continue
• Proceedings must be concluded within 2 years i.e. by 20 November 2027
• Existing powers are protected under saving provisions of the Code

✔ Employers are not required to restart proceedings or challenge jurisdiction solely due to CoSS implementation.

Can New EPF Inquiries Be Initiated?

New inquiries under Section 7A may continue until the EPF Act is repealed. However:

• No inquiry can cover a period older than 5 years
• New inquiries under Section 125 of CoSS require fresh notification of authorised officers

Review & Escaped Amount Proceedings (Section 7B / 7C)

• No new review or escaped amount cases can be initiated
• Existing cases may continue but must conclude within 2 years

Damages & Interest on EPF Dues

Levy of Damages

Ongoing damage proceedings may continue. Authorities recommend issuing fresh notifications to strengthen legal validity.

Interest on Delayed Payments

• Before 21 Nov 2025 – 12% simple interest under EPF Act
• After 20 Nov 2025 – Interest under Section 127 of CoSS (subject to notification)

Inspections Under the Social Security Code

Inspections can only be allotted after:

• Notification of inspection scheme
• Appointment of Inspectors-cum-Facilitators
• Jurisdiction allocation by Central Government

Recovery Proceedings

Existing recovery actions shall continue even after repeal. Recovery Officers notified under EPF Act retain authority for ongoing matters.

Definition of Wages – Crucial Clarification

For all inquiries relating to periods prior to repeal, the wage definition under the EPF Act, 1952 applies.

The expanded wage definition under the Code on Social Security will apply only after:

• Repeal of EPF Act
• Notification of schemes under Sections 148–150

⚠ Wage restructuring based on CoSS is premature without notification.

Authorised Officers & Jurisdiction

• Existing authorised officers retain jurisdiction
• No fresh notification required for pending cases
• New CoSS inquiries require fresh authorisation

Validity of Notices Under CoSS

Notices under the Code on Social Security are not permissible for ongoing EPF inquiries. All notices must continue under EPF Act procedures.