BYJU’S Transfers PF Dues To EPFO

Edtech decacorn BYJU’S has reportedly remitted the provident fund (PF) dues of its employees for August 2022 to May 2023 to the Employees’ Provident Fund Organisation (EPFO) following a directive from the retirement fund body.

According to the sources cited by the ET, the edtech giant has paid INR 123.1 Cr to the EPFO for the past 10 months. It has also committed to paying the remaining arrears of INR 3.43 Cr within a couple of days.

The latest payment, however, is not reflected on the EPFO website yet. As per the available data, BYJU’S made the last PF payment on June 19 for a few of its employees for January 2023 to May 2023 period.

While the edtech giant contributed PF for a few months earlier this year as well, a majority of payments were made in June. For instance, BYJU’S paid PF contributions for January 2023 in February and May as well, but the biggest chunk of payments for the month of January was made on June 19.

The EPFO had observed a shortfall in payment from BYJU’S from its digital returns, which prompted the retirement fund to issue a directive to the edtech giant, as per the report.

Following this, BYJU’S has reportedly complied up to May 2023, with the remaining compliance being monitored and verified by the EPFO.

Earlier, several former employees of BYJU’S alleged that it did not deposit the PF component of their salaries to the EPFO, despite the same being deducted. Under the Employee Provident Fund & Miscellaneous Provisions Act, a company has to deposit the PF contribution for a month by the 15th of the next month.

Further, according to a Supreme Court ruling in February 2022, an employer is needed to cover damages if an employee’s PF contribution is delayed. 

Delays on the matter attract a penal interest of 12% on the dues and damages, ranging from 5-25%, depending on the tenure of the delay. The damages are, however, capped at 100%. Employees are also entitled to file a complaint with the EPFO against the employer for delayed payments. 

BYJU’S is currently fighting battles on multiple fronts, including pressure from its lenders and investors. 

Earlier this week, the edtech received major relief as a Delaware Court rejected a plea filed by its $1.2 Bn term loan B creditors seeking a probe into the transfer of $500 Mn from its US-based subsidiary BYJU’S Alpha to other entities. 

Meanwhile, BYJU’S has also sued one of its TLB lenders, Redwood, alleging that Redwood ‘consistently increased its exposure by acquiring a sizable stake in the TLB with the intent of making windfall gains’.

Amid all the struggles, the edtech giant is also said to be looking to raise up to $1 Bn in equity funding from new investors to shore up its operations.