What Happens if Your Employer Misses a Month of PF Contribution? Understanding Penalties from EPFO

Dear Sir,

Please help me to know, if an employer fails to submit their PF contribution for the month due to some account or other issues and wants to submit the contribution in the next month, what would be the charges of penalty from EPFO.

Dear Raj,

Belated remittance of EPF contribution attracts interest at 12% per annum. In addition to interest, a penalty will also be imposed based on the duration of the belated payment.

Dear Raj,

The PF contribution is payable by the 15th of the following month. In case of delayed remittance, interest at 12% per annum is payable. If interest is not paid, the PF authorities can initiate proceedings under Section 7Q of the Act.

In addition, they can also initiate proceedings under Section 14B and claim damages depending on the number of days of default in remittance.