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Monday, March 14, 2011

Penalty Provision in respect of delay in payment of P.F. dues

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Penalty Provision in respect of delay in payment of P.F. dues

1. Delay in deposit of P.F. dues attracts penal damages. Damages are levied at the following FLAT RATES:

o For 0 — 2 months delay – @ 5 % p.a.

o For 2 — 4 months delay – @10 % p.a.

o For 4 — 6 months delay – @ 15 % p.a.

o For delay above 6 months – @ 25 % p.a. (subject to a maximum of 100%)

2. Levy of damages at lesser rates is not permissible under the EPF & MP Act.

3. Reduction/Waiver of damages – considered only for Sick Industrial Companies having rehabilitation scheme sanctioned by BIFR.

4. Deposit dues in time – avoid penal damages.

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