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.