Understanding PF ECR Late Submission Penalties: What Are the Costs and Timelines?

Can anybody help me? Please tell me what is the penalty for late submission of PF ECR. What is the process of penalty, how much penalty, and after how many days will the penalty start? I will be thankful for your help.

Dear Loveneet, Greetings for the day! Can you please tell me how many days late the monthly PF ECR was submitted at your end, and what were the reasons for the delay?

Thank you.

Under Section 14 of the PF Act, penalties are addressed, and Section 32-A deals with damages. When an employer defaults on the payment of any contribution to the provident fund, pension fund, or insurance fund, or defaults in the transfer of accumulations required to be transferred, or defaults in the payment of any charges payable under the act or scheme, penalties and damages may be recovered from the employer at the following rates:

1. Less than 2 months - 17% p.a.
2. 2 months and above but less than 4 months - 22% p.a.
3. 4 months and above but less than 6 months - 27% p.a.
4. 6 months and above - 37% (para 32A of EPF scheme)

Offences and Penalties

Offences and penalties are specified in para 14 of the EPF Act. If an employer fails to pay contributions, submit returns, etc., he shall be punishable with imprisonment which may extend to one year or with a fine which may extend to Rs. 4000 under the provident fund scheme and Rs. 5000 under the pension scheme, or with both. This applies if he deducts or attempts to deduct from the wages or other remuneration of the member the whole or any part of the employer's contribution, fails or refuses to submit any return, statement, or other document required by this scheme, submits a false return, statement, or other document, makes a false declaration, obstructs any inspector or other official appointed under this act or this scheme in the discharge of his duties, fails to produce any record for inspection by such inspector or other official, or is guilty of contravention of or non-compliance with any other requirement of this scheme (para 76 of EPF, para 42 of EPS, para 29 of EDLI scheme).

Hence, to sum up, the employer is liable for both damages and penalties if he contravenes the law. I hope I have cleared your doubt.

Thanks & Regards,

Ankita
Executive HR
SNGL

Hi Ram Sir, Thanks for your concern and for updating my knowledge.

Penalty Rates for Delayed Submission

- For 0–2 months delay: @ 5% p.a.
- For 2–4 months delay: @ 10% p.a.
- For 4–6 months delay: @ 15% p.a.
- For delay above 6 months: @ 25% p.a. (subject to a maximum of 100%)

Please correct me if I am wrong.

Regards,
Ankita

For 0–2 months delay - @ 5% p.a.
For 2–4 months delay - @ 10% p.a.
For 4–6 months delay - @ 15% p.a.
For 6–8 months delay - @ 20% p.a.
For delay above 6 months - @ 25% p.a.

Along with 12% per annum interest, the PF challan's last date is the 15th of every month. If it is not cleared by the 15th, you will get a 5-day grace period. If it is cleared on the 20th, then there will be no penalty or interest. However, if it is cleared on the 21st, then a 6-day penalty and interest will be charged. At the time of inspection, after inspection, you will receive a notice from the PF Department for paying this amount.

Regards,

Challenging Damages Under Section 14 of the EPF Act

Has anyone challenged the damages under Section 14 of the EPF Act? Are we liable for penalties and damages if the amount exceeds 150%? Is there a limit to the total amount of penalties and damages, such as 100%, 200%, and so on?

Regards

Dear Sir,

If we submit PF contributions more than 5 days after the 20th of the month, how much penalty will be imposed by the PF department? Can you guide us regarding this issue?

Thank you.

Please tell me what the penalty is for late submission of PF ECR and ESIC.

Hi,

I have had pending PF for the last 8 months. What should I do to reduce the penalty?

Hello Everybody,

Can anybody help me? Please tell me what the penalty is for the late submission of Nil PF ECR. I would be thankful for your help.