Are you still waiting for your organisation to pay you its contribution of Employers Provident Fund (EPF)? You don’t need to worry as your employer might have to pay fine and higher interest payment. A Supreme Court judgment stated that the employers will have to cover damages if they delay in payment of EPF contribution of the employees, a Mint report stated.According to Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, an employer will be asked to pay higher interest on the amount due from it from the due date of actual payment. On the other hand, Section 14B states that the delayed payment will be regarded as a cognisable offence. The Act also has a provision authorising the government to recover the damage occurred because of non-payment by the employer.The Employees Provident Fund Organisation (EPFO) had recently laid out the rates at which damage due to delayed PF contributions will be levied on the employers. Check this tweet below:
As per the provident fund body, the damages are restricted up to 100 per cent of the amount in arrears. An annual interest of 12 per cent will be applied on the amount due for the entire period. “Employers defaulting on contributions are liable to pay Damages & Interest on the amount due”, the EPFO had posted on its Twitter handle. It is advisable for to keep themselves updated of the monthly deposit of their PF contributions. Besides the SMS alerts sent by EPFO, you can check your balance by logging on to the EPFO portal.
In case your employer delays your EPFO contribution, here’s what you should do:1. File a complaint with the EPFO against your employer. 2. On filing the complaint, an inquiry will be imitated by the EPFO against the employer. If found guilty, the employer can face a legal action. 3. The EPFO is authorised to recover the damaged amount through charging interest on the late deposit. The employer can also face a police complaint. 4. Before penal action is initiated, the employer will get an opportunity to defend itself.
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