Edtech decacorn BYJU’S has reportedly fulfilled its provident fund (PF) obligations by remitting dues to the Employees’ Provident Fund Organisation (EPFO) for the period spanning August 2022 to May 2023. According to sources cited by ET, the company has paid INR 123.1 Cr ($16.5 million) to the EPFO for the past ten months. Additionally, BYJU’S has committed to settling the remaining arrears of INR 3.43 Cr ($460,000) within the next few days.
Despite the payment, the EPFO website has yet to reflect the latest transaction. Publicly available data reveals that BYJU’S made its most recent PF payment on June 19, covering the period from January 2023 to May 2023 for select employees.
The EPFO had noticed a shortfall in payment from BYJU’S through its digital returns, which prompted the retirement fund body to issue a directive to the edtech giant. BYJU’S has reportedly complied with the EPFO’s directive until May 2023, with the EPFO currently monitoring and verifying the remaining compliance.
Previous reports highlighted allegations by former BYJU’S employees that the company failed to deposit the PF component of their salaries to the EPFO despite deductions being made. According to the Employee Provident Fund & Miscellaneous Provisions Act, companies must deposit PF contributions by the 15th of the following month. A Supreme Court ruling in February 2022 stipulated that employers are liable for damages if PF contributions are delayed.
Delays in payment attract a penal interest rate of 12% on the dues, with damages ranging from 5% to 25%, depending on the duration of the delay. However, damages are capped at 100%. Employees have the right to file a complaint with the EPFO against employers for delayed payments.
BYJU’S is currently facing various challenges, including pressure from lenders and investors. Recently, the company received a major reprieve as a Delaware Court rejected a plea from its $1.2 billion term loan B creditors, who sought an investigation into the transfer of $500 million from BYJU’S Alpha, its US-based subsidiary, to other entities.
Moreover, BYJU’S has filed a lawsuit against one of its TLB lenders, Redwood, accusing the firm of acquiring a significant stake in the TLB with the intent of making substantial gains.
Amid these ongoing struggles, the edtech giant is reportedly seeking up to $1 billion in equity funding from new investors to strengthen its operations.
