EPFO: Code on Social Security FAQ: Compliance & Recovery

Code on Social Security – FAQ: Compliance & Recovery

Code on Social Security – FAQ

Topic: Compliance & Recovery under the Code on Social Security, 2020 (CoSS)
Scope: Ongoing and new inquiries, recovery, interest, damages and related procedural issues
This FAQ is intended to explain the transition from the EPF & MP Act, 1952 to the Code on Social Security, 2020 (CoSS) for compliance and recovery matters, including ongoing inquiries and future actions. [file:1]

FAQ Index

FAQs with Responses

1. Whether inquiries initiated under section 7A prior to 21/11/2025 can continue after notification of CoSS?

Response:
  • Yes, these proceedings shall continue. [file:1]
  • The inquiries must be concluded within two years, i.e. by 20/11/2027. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act, 1897; third proviso to section 125(2) of CoSS. [file:1]

2. Whether 7A inquiries dealing with period prior to 5 years can continue after notification of CoSS?

Response:
  • Yes, such proceedings shall continue. [file:1]
  • They must also be concluded within two years, i.e. by 20/11/2027. [file:1]
  • Powers of inquiry/assessing officers will be drawn from section 7A of the EPF & MP Act and section 125 of CoSS. [file:1]
Relevant clauses: Section 164(2)(a), 164(3) of CoSS; Section 6 of the General Clauses Act; third proviso to section 125(2) of CoSS. [file:1]

3. Whether new inquiries can be initiated under section 7A of the EPF & MP Act?

Response:
  • Yes, new inquiries under section 7A can be initiated till the EPF & MP Act is repealed. [file:1]
  • No inquiry can be initiated for applicability or default for a period prior to five years from the date of such initiation. [file:1]
  • Only after notification of Authorised Officers can inquiries be initiated under section 125 of CoSS. [file:1]
Relevant clause: Proviso to section 125(1) of CoSS. [file:1]

4. Status of ongoing assessments/inquiries under sections 7B and 7C – can they be continued?

Response:
  • Yes, ongoing inquiries under sections 7B and 7C can continue. [file:1]
  • They must be concluded within two years, i.e. by 20/11/2027. [file:1]
Relevant clauses: Third proviso to section 125(2) of CoSS; Section 6 of the General Clauses Act. [file:1]

5. Whether any new matter can be initiated under sections 7B/7C (Review/Escaped Amount)?

Response:
  • No new matter for review or escaped amount can be initiated because there is no corresponding provision in CoSS. [file:1]
Relevant clause: Not specifically provided; absence of corresponding provision in CoSS. [file:1]

6. Status of ongoing inquiry under section 14B and initiation of new inquiries for levy of damages?

Response:
  • Authorised officers for initiating inquiry under damages can be taken as APFC, RPFC, ACC as notified in Gazette on 29 October 2025. [file:1]
  • A fresh notification under section 128 of CoSS is recommended at the earliest to be on firm legal ground. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act. [file:1]

7. Status of levy under section 7Q and whether interest can be charged under section 127 of CoSS?

Response:
  • For period prior to 21 November 2025, interest is to be levied at the rate (12% simple interest) mentioned in the EPF & MP Act, 1952. [file:1]
  • For period after 20 November 2025, levy under section 127 of CoSS can be charged after the rate is notified by the Central Government. [file:1]
Relevant clauses: Section 164(2)(a), 164(3) and 127 of CoSS; Section 6 of the General Clauses Act; section 7Q of the EPF & MP Act, 1952. [file:1]

8. Whether new inspections can be allotted through SS portal?

Response:
  • Inspections can be allotted only after the Inspection Scheme under section 122(2) is notified and Inspectors-cum-Facilitators (ICF) are appointed and their jurisdiction notified under sections 122(1) and 122(3) by the Central Government. [file:1]
Relevant clauses: Section 122(1), 122(2) and 122(3) of CoSS. [file:1]

9. Whether recovery proceedings can continue after CoSS and repeal of EPF & MP Act?

Response:
  • All actions can continue till such time as the EPF & MP Act, 1952 is repealed. [file:1]
  • After repeal, Recovery Officers notified under the EPF & MP Act, 1952 can continue to act on all provisions of recovery for existing recovery matters. [file:1]
  • For section 131 of CoSS (corresponding to section 8F), a separate notification is to be issued by the Social Security Organisation (Central Board). [file:1]
  • A fresh notification under section 2(68) is recommended to be issued at the earliest to be on firm legal ground. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act; section 131 and section 2(68) of CoSS. [file:1]

10. What would be the definition of wages in ongoing 7A inquiries – EPF Act, 1952 or CoSS?

Response:
  • For ongoing inquiries under section 7A that pertain to periods prior to repeal of the EPF & MP Act, 1952, the definition of wages shall be as per the EPF & MP Act, 1952 and the schemes framed thereunder, including judicial interpretations. [file:1]
  • Only for periods after repeal of the EPF & MP Act, 1952, and after notification of new schemes under sections 148–150 of CoSS, will the definition of “wages” under section 2(zzl) of CoSS apply. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act; sections 148–150 and 2(zzl) of CoSS. [file:1]

11. Who would be the Authorised Officer to conduct ongoing inquiries under section 7A of the EPF Act?

Response:
  • For ongoing inquiries under section 7A of the EPF & MP Act, 1952, the same officers who were authorised prior to 21/11/2025 shall continue to exercise jurisdiction. [file:1]
  • These officers were empowered through notifications under the EPF & MP Act, 1952 and retain that authority for all pending 7A matters, even after CoSS comes into force. [file:1]
  • For new inquiries under section 125 of CoSS, the Central Government must issue a fresh notification of Authorised Officers. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 125 of CoSS; Section 6 of the General Clauses Act; existing EPFO notifications. [file:1]

12. Whether a new notification is required for ongoing 7A inquiries?

Response:
  • No, a new notification is not required for continuing ongoing inquiries under section 7A of the EPF & MP Act, 1952. [file:1]
  • Section 6 of the General Clauses Act preserves ongoing proceedings, existing rights and liabilities, and powers of authorities under a repealed Act, unless the new Act indicates a contrary intention. [file:1]
  • Section 164(2)(a) and 164(3) of CoSS explicitly save all existing inquiries, actions and authority of officers empowered under the EPF Act, so ongoing 7A inquiries continue as if the EPF Act had not been repealed. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act. [file:1]

13. For new inquiries under section 125 of CoSS, does the Authorised Officer need to be notified afresh?

Response:
  • New inquiries under section 125 of CoSS can be initiated only by officers specifically notified under that provision. [file:1]
  • Earlier authorisations issued under section 7A of the EPF & MP Act, 1952 do not automatically extend to CoSS inquiries. [file:1]
  • Therefore, a fresh notification is required from the Central Government designating Authorised Officers under section 125 before any new inquiry is initiated. [file:1]
Relevant clauses: Section 125(1) of CoSS; Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act. [file:1]

14. Jurisdiction of Authorised Officers for ongoing 7A inquiries?

Response:
  • The jurisdiction of Authorised Officers for ongoing 7A inquiries remains the same as the jurisdiction assigned under the EPF & MP Act, 1952 and EPFO administrative orders. [file:1]
  • By virtue of Section 6 of the General Clauses Act and section 164(2)(a) & 164(3) of CoSS, territorial and functional jurisdiction continues unchanged until completion of the inquiry, and no fresh notification of jurisdiction is required. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act; existing EPFO notifications/administrative orders. [file:1]

15. Are notices under CoSS required for ongoing 7A inquiries?

Response:
  • No, notices under CoSS, 2020 are not required and are not permissible for ongoing 7A inquiries. [file:1]
  • All notices must continue to be issued under the EPF & MP Act, 1952 in accordance with the original 7A procedure until the inquiry is concluded. [file:1]
Relevant clauses: Section 164(2)(a) and 164(3) of CoSS; Section 6 of the General Clauses Act; section 7A of the EPF & MP Act, 1952. [file:1]

16. Time limit and manner of holding inquiry under section 125(1) of CoSS?

Response:
  • Section 125(2) of CoSS provides that inquiries under section 125(1), as far as practicable, shall be held on a day-to-day basis and an endeavour shall be made to conclude the inquiry within two years. [file:1]
  • Pending inquiries immediately before commencement of CoSS shall be concluded within a period not exceeding two years from the date of such commencement. [file:1]
  • Practically, inquiries under section 125(1) are to be held regularly (e.g. weekly) and concluded within two years, with recorded reasons and possible extension up to one year where not concluded in time. [file:1]
Relevant clause: Section 125(2) of CoSS. [file:1]
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