PF – Damages to Employers for Delay in Deposit

Authored by: Nagendra K A |

Delay in deposit of P F dues by employers will attract 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%)
• Levy of damages at lesser rates is not permissible under the EPF & MP Act.
• Reduction/Waiver of damages – considered only for Sick Industrial Companies having rehabilitation scheme sanctioned by BIFR.
• Deposit dues in time – avoid penal damages.