Understanding PF Deposit Deadlines: How Does the Kerala High Court Ruling Affect You?

Provident Fund Deposit Deadlines

We all know that PF is to be deposited by the 15th of each month. The question is: if the salary for March is paid in April, should PF be deposited by the 15th of April or the 15th of May? Furthermore, a 5-day grace period is allowed by the Department.

In this case, Jewel Homes Pvt Ltd argued that PF must be deposited within 20 days (15 days + 5 days grace period) of the close of the month for which the salary is paid, and not the month in which the salary is paid. They also contended that interest for any delay should be charged from the 21st day only.

Kerala High Court Ruling

The Kerala High Court, in its order dated 10.1.2012, made the following rulings:
- PF contributions must be deposited within 20 days (15 days + grace period of 5 days) of the close of the month for which the salary is paid, and not the month in which the salary is paid.
- In cases of delay, interest will be charged from the 16th day and not from the 21st day. This means that the grace period is allowed for the payment of PF contributions only, and not for the calculation of interest and damages in case of a delay.

Regards

The Kerala High Court's decision specifies that PF contributions should be deposited within 20 days (15 days + 5 days grace period) of the close of the month for which the salary is paid, not the month in which the salary is paid. Interest for any delay should be charged from the 16th day, indicating that the grace period is solely for the payment of PF contributions and not for the calculation of interest and damages in case of a delay.

Therefore, as per this ruling, in the scenario where the salary for March is paid in April, the PF should be deposited by the 20th of April, and interest would begin accruing from the 16th day in case of any delay.