Understanding PF Deposition Deadlines: When Do Penalties Kick In for Contractors?

Can anybody guide as to what is the maximum permissible limit or days in the Act to accept PF deposition every month on behalf of the contract laborers engaged by the contractor, after which there will be a penalty on the contractor.

Regards,
Peeush

There is no differentiation between a Manager and a Contractor. Whoever it may be, PF has to be deposited on or before the 15th of the succeeding month of the salary paid month. For example, PF for the month of April 2012 has to be paid to the PF office on or before the 15th of May 2012.

Dear Peeush, there is nothing in the act that specifies a limit per day. PF is calculated on a monthly basis only. In the case of daily wagers, if the salary is given on a daily basis, then the amount should be given after deducting 12% from the basic wage/minimum wage or whatever.

Regards.

PF Penalty Calculation

Further, as PF is paid on a monthly basis, the penalty will also be levied on a monthly basis. For example, if PF is paid on the 22nd of a month, then they can charge a penalty for a 7-day delay in terms of a percentage (%). It may be 5%, 10%, 15%, but not to exceed 37% in any case. There is no penalty on a daily basis.

The PF Act does not differentiate between the principal employer and contractor for the deposit of contributions. In both cases, your contribution should be credited to the PF A/C on or before the 15th of the month.

Regards,
Mangesh Wakodkar
Aurangabad

EPF Monthly Contribution Deadline

The EPF monthly contribution deadline is on or before the 15th of each month, with an additional 3-day grace period. However, these grace days should only be used in unavoidable situations. It is important to note that we cannot rely on the grace days every month, and this is not explicitly mentioned in the policy.

Best Regards,
M Suresh

As I know, the date is the 15th, but we have a grace period up to the 20th of each month. So, if you make the contribution before the 20th of the month, you are safe and fine.

Regards,
Vikramjit.