If your employer has delayed your PF contribution for any particular month then you don’t have to worry about it. Your employer, as per EPFO rules, will be liable to pay a heavy fine and high-interest payment. A Supreme Court ruling governs that if an employer fails to make or delay the PF contributions for employees then they will have to cover the damages, as mentioned by Mint in a report.
Employers to Fine and Cover Damages if They Delay making PF Contributions
As per Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, an employer will have to pay a high-interest rate on the due amount from the date of actual payment. Whereas, Section 14B states that the payment delayed by the employer will be considered a cognisable offence. Furthermore, the same act calls an employer to cover all the damages in case of non-payment.
The Employees Provident Fund Organisation (EPFO) has recently released the rates at which employers will be charged for delayed payments.
As per EPFO, the damages levied from the employers are limited to 100 per cent of the amount payable. Moreover, an annual interest rate of 12 per cent will be levied on the total amount due for the entire term.
“Employers defaulting on contributions are liable to pay Damages & Interest on the amount due,” EPFO informed via the Twitter handle.
So, these are the reasons why an employee should be aware of his or her PF contributions and balance.
Here’s What You Can Do if Your Employer Delays Contributions:
- You can file a complaint on EPFO against your employer.
- Once your complaint is logged in, EPFO will immediately enquire about the employers. And if found guilty, the employer will face legal action.
- The employer may also face a police complaint.
- As per the rules, EPFO is allowed on legal grounds to recover the damages caused by late payments from the employer.
- However, an employer will be granted an opportunity to defend before the final action against it.