Late PF Challan Submission: Does It Affect Employee Benefits and Entitlements?

Dear Sirs,

We have around 1500 contract laborers under 7 different contractors. The last date for the submission of ESI and PF challans is the 21st and 15th of the particular month, respectively.

My query pertains to the provision of a 5-day grace period for the submission of PF challans. Could you please provide the relevant section/circular that allows for this grace period? Additionally, if the contractor submits the challan late, what impact does it have on the employees? Are they entitled to interest for that particular month?

Kindly provide a prompt response.

Regards,
Harpreet Singh
(AM - P&A)

Whether it is PF or ESI, there is no loss to the employee. However, penal interest is charged by PF/ESI authorities on the amount due to the contractors.