Byju’s seems to be in news in recent times, in a latest update the edtech company has remitted PF payments of a majority of its employees on July 25.
Byju’s Clears PF Payments Of Most Employees
The news comes after the Employees Provident Fund Organisation (EPFO) questioned the company over delays following the media report.
It appears that Byju’s remitted PF payments worth Rs 8.54 crore for around 24,027 employees on July 25, according to the sources.
This data will take around three days to reflect on the official portal.
But, Byju’s had denied any such delays earlier.
The company said that for a “few hundred employees” it is awaiting KYC and once that is done, the dues would be paid.
“The EPFO will make sure all its members get their dues back from their employers. The system empowers the custodian (EPFO) to act swiftly and protects the financial social security of its members. The current development is driven by the EPFO’s active interest in protecting employees’ rights and the employer’s willingness to coordinate,” said Raghunathan KE, Board Member of EPFO representing employers while confirming the development.
Prior to this, media reported that Byju’s has not paid PF to a majority of its employees for June despite a nudge from EPFO last month over irregularity in PF contributions.
Sign of Cash Flow Pressure
The data showed that Byju’s has made PF contributions towards 738 employees for June, compared to 25,000 employees in the previous month.
The recurring delay in PF payments can be considered a sign of cash flow pressure at the firm, said multiple industry consultants.
Notably, Byju’s is yet to close a long-pending funding round, which is a much-needed infusion essential to tide over the immediate liquidity crunch.
The edtech company, which was last valued at $22 billion, gave up its biggest office space in the country to further cut down costs, as per the media report on On July 24.
In the meantime, Byju’s has already officially fired more than 2,000 employees, and moved a majority of its workforce to contract basis.
