Employer Underpaid ESI or PF Contributions: What Penalties Could They Face After 2 Months?

Dear Sir, could somebody tell me if the employer submitted less contribution of ESI or PF, what penalty will arise on the employer, as 2 months have been completed?

Regards,
Rana

Yes, you can pay in the column of arrears, but you should submit the valid data for the delay. The EPF Officer will accept it, and then they will calculate the delay payment interest.

Regards,
P. Packiaraj

If your company pays less contribution for ESI, then you must pay this contribution under the subject of omitted wages on the online ESI website. However, before doing so, you need to inform your local ESI office. Failure to do so may result in the ESI authority charging interest and damages on that amount. For PF-related amounts, you should pay using a separate challan.

Regards,
Toufik N.S

Find the attached file; it may help in relation to PF deductions.

PF Form-12 and 10 Explanation

Ensure there is a single line break here.

Regards.

You have to submit Form 5 for returns (RC). Form 6 is the register of employees. Moreover, the RCs should be prepared in quadruplicate and submitted to the appropriate Branch Office within 42 days of the expiry of the contribution period (12th May or November 11th of each year).

For ESI:

Under Section 39(5)(a) of the ESI Act, read with Regulation 31(A) of the ESI (General) Regulations 1950, the employer is liable to pay simple interest at the rate of 15 percent per annum in respect of each day of default or delay in payment contributions. In addition, under the Provision of Regulation 31-C of ESI (General) Regulations, 1950, read with sec.85(B)(i) of the ESI Act, the Corporation is empowered to recover damage as under:

Period of Delay in Payment of Contribution Rate of Damages on the Amount Due:

- Up to less than 2 months: 5%
- 2 months and above but less than 4 months: 10%
- 4 months and above but less than 6 months: 15%
- 6 months and above: 25%

Interest and damages can also be recovered as arrears of land revenue Section 45(c) to Section 45(I) by the Recovery Officer of ESI Corporation.

For PF, refer to the attachment.

One of our company employees' salaries has crossed $15,000. Should he contribute to ESI? Please help.

I wanted to know how I can determine if my previous employer, who has been deducting PF from employee salaries including mine, is registered with the regional PF authority. It is an NGO funded by state and central governments, as well as the corporate sector, with substantial foreign support. I have raised this question before but haven't received any response. We can potentially assist around 300 to 400 people.

Thank you.

Dear Friends, please guide me on the following issue: "Whether interest will be calculated or not in case contribution stops towards PF account?"

Regards, Vinutha