How to Fix an EPF Deduction Mistake for a New Employee Without Facing Penalties

We have an employee who joined our company on 4th July 2022. At the time of joining, he requested us not to deduct his EPF, which we accepted and did not deduct. His gross salary is Rs. 34,800, and his basic salary is Rs. 13,920. Since this employee's basic salary is less than Rs. 15,000, EPF deduction was mandatory from his joining month, which we just discovered during our internal office audit.

I request guidance on how we can rectify this mistake to prevent any action from the EPF department in this regard.

Thank you,

Gajinder Singh

Dear Seniors, Kindly help me by replying to the following query:

We have an employee who joined our company on 4th July 2022, and at the time of joining, he requested us not to deduct his EPF, which we accepted, and did not deduct his EPF. His gross salary is Rs. 34,800, and his basic salary is Rs. 13,920. Since this employee's basic salary is less than Rs. 15,000, his EPF deduction was mandatory from his joining month, which we just got to know during our internal office audit.

Now, I request guidance on how we can correct this mistake to avoid any action by the EPF department in this regard.

Thank you,
Gajinder Singh

Immediate Action for Pending Dues

Immediately calculate the pending dues under the PF & Misc. Act and deposit the same to the authority. Then continue to deposit the dues every month on time. Wait for penal interest, etc., in the future.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity

Hi, you need to pay arrears starting from the Date of Joining (DOJ) of the employee. Please calculate the amount for the period that was missed and ensure that it is remitted accordingly.

Dear Concern,

Thank you for your reply and assistance. Could you kindly guide me on the formula for calculating arrears and whether they can be paid in one go or if we need to pay them separately on a month-by-month basis?

Thank you,

Gajinder Singh