Non-Payment of ProvidentFund dues always cost thousands of rupees to Companies as penalties or fines.
As per the Employees Provident Fund & Miscellaneous Provisions Act, 1952, every company or establishment required to get their organization registered under the Act if they wish to employ 20 or more manpower in their organization.
According to the provisions of the Act, every employer required to file the monthly Provident Fund return from their employer portal before 15th of every month for the preceding month. And payment against such return need to pay mandatorily before 15th of this month.
If employer fails to remit the dues against such return within its due date, EPFO impose penalties in the form of Damage which need to be paid online via EPFO Employer portal.
You can check the payable Damage as per the below flow chart: (Non-Payment of Provident Fund)
Prepare and Generate the Challan (if you have any Damage payment it will show here).
Then again go back to ECR/Return Filing.
Click on View/Pay 7Q-14B Challan for payment.
Please note that the non payment of Damage also attract compound interest on the payable dues. So, if any Damage Payable amount showing in the employer portal it is advisable to clear the dues as earliest.
Or if you think that the payable damage amount is not matching as per your records then you may file Grievance and contact the Regional Provident Fund office physically.
What employee can do in case of Non-Payment of PF by Employer?
Employee can check their Provident Fund Balance in their Provident Fund Passbook and know the status of deposition by employer in their PF account. There are multiple option available to check the PF Balance. You may click here to know the more about How to check PF Balance.
If employer delayed in PF deposition against their employee it may attract penalties or damages to employer as explained above. In such situation employee may take the below steps to report such Non-Compliances:
Submit Grievance at EPFO which can be done online.
Employee may File an RTI to report such non-Compliances.
Employee may file Police case against such non-compliance under sections 406 and 409 of the Indian Penal Code (IPC) for criminal breach of trust.
EPFO Contribution Details
According to the Provision of the EPF and MP Act, 1952, the present contribution rate for the employee is 12%. Out of this 12% 3.67% goes to Provident Fund and 8.33% goes to Pension Fund.
Aside that, employer contribution rate is 13%. Out of this 13% 3.67 goes to Provident Fund and 8.33% goes to Pension Fund. Remaining 1% goes to EDLI (Employees Deposit Link Insurance) and Administrative Charges 0.50% for each.
