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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28 Comments

  1. Jayanta Kumar Naik says:

    Sir We are working under odisa government on contractual basis but the concerned establishment not deposits the deducted epf amount on epfo for more then five years,now what can we do ?

  2. Ramnayan says:

    Sir, We have granted 21 emi from epfo for payment of interest and damages for late payment. Now they want additional interest 21 cheque for interest for emi payment. Can they charge again on interest and damages

  3. sanjay barewar says:

    I have received the recovery letter from pf office. Actually my father started the business in 2005 and in 2015 he expired, due to which business is stopped. After that we closed the pf account. After that we start getting the notice from PF office and now they are asking me to pay the amount, else they will take action on me. They said legaly I am responsible to pay his due of 50k. So what should I do.

  4. Monu gope says:

    Sir i had got a penalty letter from bank through epfo then we paid the penalty online in employer pf portal after some days we got to know that my bank was ceased and said that you have to go pf office and tell them to release my bank account as i have paid the penalty.

  5. Chidambaram says:

    Sir plz say this.Sir we actually we payed p.f amount for 15 members for remaining we didnt pay as we were not aware of it.so before 6 months a p.f officer came and checked and he told there are 70 members and he said we cheated,so he asked to pay rs 10 lakhs.so he called before 6months.but we didnt didnt attend the call.so we dont know that we should pay penalty.so before 1 month he warned as and he asked to pay 16lakhs.we dont know why he increased the amount.we asked him why but he didnt respond.so today we got a letter which he warned without considering our words.BUT THIS TIME ONLY WE FAILED TO PAY.BEFORE THAT WE REGULARLY PAID.SO PLZ SAY HOW TO ESCAPE FROM THIS P.F OFFICER IT IS URGENT

  6. Subash says:

    I am working in A company. I have started working with this company from Sept-17 to present. My Employer is not paying my PF from Day 1 and he didn’t even register my details with PF. Even employer is not paying salaries on time. What is the process to send legal notice to my employer. I have all the proofs. Appointment letter, offer letter, Payslips, bank statement.

  7. deena says:

    Pf is not paid for july 2017.. what is the penalty and interest i have to pay in november 2017? is it based on basic salary or pf amount .. how to calculate?

  8. shivakumar.N.S says:

    We established school in 2002,with small capital by unemployee, facing so much financial problem,& in 2007&2008 ESI inspector visit school & collecting register & 25 teachers working that time.But from that day we are not paid ESI or EPF ,Inspector his self Registered school for ESI&EPF.After that we received Noticefrom both office.Now we paid EPF,but interest.Our school run by rented building.By
    misguide by KUSUMA&violation Bhasha Meet hi.Any way is their to reduce avoid interest rat.

  9. R.Balasubramanian says:

    EPF dues were deposited 3 months behind the schedule. i.e. March 2014 was depositted in June 2014. Can we pay the demages and penal interest as per law for 3 months today. Any time limit for the payment of demages and penalty interest after 2 years. please clarify.

  10. sourabhsharma says:

    Can i pay PF late without late payment charges ? would it show balance amount of penalty anywhere ?
    I can’t online payment on 15th of this month because of server down.I will try to payment on 16th.Pls give me a suggesion

  11. Nikhil says:

    We had a 7A inquiry in the year 2012 in which PF officials had raised liability on special allowance which was the part of the CTC from 2005-2008. We came to know about the same after the inspection in 2012, where in we were told that special allowance would also be considered for PF calculation. Based on that we made the adhoc payment against the liability. Earlier we received the payment notice which was of X amount and when we visited PF office with all the necessary documents recently we were again asked to give employee wise details of that X amount to credit that amount in their respective account which should have been done earlier when we paid that X amount in 2012. Our point is that we have never defaulted in paying the regular payments. Now we have received the revised order stating the amount has increased from X to 3 times as they have considered the effect of that adhoc payment from 2005 which was not a regular payment.
    We would like to know whether such kind of payments/ arrears (Liability on special allowance identified in 2012) would also attract damages & interest from 2005 OR 2012.
    Through some sources we came to know that recently there was judgement passed on such case where in the damages were levied on such adhoc payments when identified and not from the beginning.

    Please guide us on the same & help with some citations.

  12. manjunath says:

    we remit january pf amt in the month of march,but challen will genarate for the month of feb, so how to genarate the january challen.

  13. girish says:

    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

  14. Dr. Abhay Kumar says:

    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.

  15. Rajan Philipose says:

    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.

  16. Santharam,V says:

    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.

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