Late Deposit of PF Contribution - in such case whether employees will get the interest on PF?

I have a question: if the employer is not depositing the Provident Fund contribution (both employee & employer) within time, will employees still get the interest on PF for the delayed period? If anyone has any documents related to this, kindly provide them.

Regards,

Dear San Sri,

Yes, the employee will receive interest on his PF amount even though the payment was delayed.

I am not sure whether interest is paid by the P.F. Dept. for the period of delay in paying contributions, but the P.F. authorities can levy interest and damages for the period of delay on the contributions thus defaulted by the employer under the provisions of the P.F. Act.

B. Saikumar

Getting interest on PF amount by the employee will go as usual in case of the management delays the deposit.

The PF authorities will take care of collecting interest on delayed payment from the Employer.

Dear Friend,

In response to your query, I am confirming that employees will receive their due interest from PF Authorities despite the fact that the employer has failed to deposit the monthly PF contribution on time, i.e., by the 15th of the month.

For the delayed payment, the EPFO will issue a show cause notice to the employer regarding interest and damages at the end of the financial year when the PF accounts of all employees are finalized and Form 23 is generated. If the reply to the show cause notice is unsatisfactory, the EPFO will charge interest for the delayed payment as well as damages as per the provisions of the Act.

In any event, the employee will not be disadvantaged in terms of the interest to be received. I hope this clarification is clear to you.

Sibabarata Majumdar
Management Consultant Legal & HR
Kolkata, Mb: 9830023706

Hi, this is Tanu, and I am handling compliance in my company. For the past four months, we have not submitted the EPF contributions, and we have received multiple show cause notices. Currently, we have already created the challans for the last four months, and the payment will be made next week. I am stuck in deciding how to reply to this situation. Please suggest a suitable response.

Hi, This is Santosh Kumar, and I'm handling compliance in my company. For the past 4 months, we have not submitted the EPF contributions, and we have received multiple SHOW CAUSE NOTICES. Currently, we have already created the challans for the last 4 months, and the payments will be made next week.

Please suggest how to reply as I am currently stuck in this situation.