Penalty Provision in respect of delay in payment of P.F. dues
- Saturday, March 12, 2011, 7:32
- Corporate Law
- Articles
Penalty Provision in respect of delay in payment of P.F. dues
1. Delay in deposit of P.F. dues attracts penal damages. Damages are levied at the following FLAT RATES:
- For 0 — 2 months delay – @ 5 % p.a.
- For 2 — 4 months delay – @10 % p.a.
- For 4 — 6 months delay – @ 15 % p.a.
- For delay above 6 months – @ 25 % p.a. (subject to a maximum of 100%)
2. Levy of damages at lesser rates is not permissible under the EPF & MP Act.
3. Reduction/Waiver of damages – considered only for Sick Industrial Companies having rehabilitation scheme sanctioned by BIFR.
4. Deposit dues in time – avoid penal damages.
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I read the article reg penalty.I feel the penalty of 25% for above 6 months is less instead it should be 50%.one year it should be 100% and for subsequent years it should be number of years multiplied by 100 and that much percentage should be the penalty.
It is most welcome measure of providing faciality to tract PF Claim status on internet. But, what is required more urgently is the facility to tract the PF account status itself (i.e.: accumulated amount, interest accrued, loan availability etc., as the yearly statement is very irregular from PF Office at Kolkata as I am not getting any statement for the last 2 years.
By enforcing a high rate of penalty the employers would pay attention to the EPF.
Further, what would be the action taken against the employers who do not want to take the employees (getting a salary of >6500) registered under the EPF who were already registered with EPF while with their previous employer.
pfrd aloowed to some private companies as exempted organisation and loal authourities ,even commissiner level persons are also not entertaining complaint about them .where common people will go .my about 60000/-rs is lying with my employer m/s nrc limited but local authourities saying your company is exempet orgn .does it means they are above the indian laws
whather interest is also charged for delay or only damages is charged as penality.