The Employees’ Provident Fund Organisation on June 15, 2024, reduced the penal charges on employers who defaulted or delayed making contributions to the employees' Employees’ Provident Fund account, Employees’ Pension Fund and Employees’ Deposit Linked Insurance Scheme. In an official release, the Ministry of Labour and Employment stated that the new penalty stands at 1 per cent interest per month on the arrear of the contributing amount. The one per cent penal charge stands uniform and separately for three schemes namely, Employees’ Provident Fund account, Employees’ Pension Fund and Employees’ Deposit Linked Insurance Scheme. As much as one per cent interest per month will amount to 12 per cent interest per annum on the arrears, significantly lower than the maximum penalty of 25 per cent interest earlier charged on arrears.