Madhu.T.K
Industrial Relations And Labour Laws

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I paid salary arrears to my employees for the month of Jun to Aug in Dec. Accordingly, I paid the PF for the same on 07 Jan 18 clearly mentioning while preparing the challan as arrears for Jun to Aug. The delay was on account of the Principal Employer needing time to get approvals from his HO.
Now, the EPF site has charged me 7Q and 14B damages and interest.
Kindly advise.
ARB
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In computerised system of making payments, you cannot write much ore than what the system permits. Therefore, you should have written the amounts in the "other" column of the challan. Otherwise, you should have clubbed the salary of Dec and the arrears and paid it without showing the arrears separately. You should also have got an opportunity to show cause when you have received notice. Now, you may file a review petition describing that the amount paid was arrears of salary and there was no delay in payment.
Dear Madhu,
In First Place Clubbing the Arrears and the monthly pay is valid. when we have a option of Paying the arrears .Will the EPFO charge Interest on Arrears amount as the word "Arrears" it self define the due Payment & not "Late Payment". In Case if we club the Arrears & Monthly Pay and the employee has NCR days will it effect the Pension amount on NCR days .In the next month again the gross wages will come down with the difference of Arrears amount.Request to please advice the effect on the same.
Regards
Umesh

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File Type: pdf Servagya_EPF_No_Interest__Damages_On_Arrear_Payments.pdf (133.2 KB, 42 views)

There is nothing wrong in paying the PF on arrears of salary paid along with the current month's contribution. It is true that in the next month the contribution will come down but that is not at all an issue. At the same time,if you pay it as an arrears it will be presumed that it is late payment of PF. This will attract interest and damages. Therefore, if you have revised the salary effective from 1st April 2019 and the arrears of salary is paid only in August 2019, you can club the salary of August and pay the contribution for the whole amount.
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