Penalty and interest rate on late payment of PF
Hemlata Khandenwal / 2020-03-11 04:29:59


Employer registration can be done voluntarily or through a law mandate. Only those employers who have EPF registration, their employees can contribute to this fund. The amount of interest received (deposit and interest received) on whose total deposit is tax-free.

In order to ensure the safety and timely payment of funds by employers and employees, provisions in relation to the fund are governed by the Employer's Provident Fund and Miscellaneous Provisions Act, 1952 (PF Act).

PF Payment Due Date:

This is the date under which you have to submit the PF which is deducted from the salary of the employees by the companies. This has to be done on or before the 15th of the following month. That is, if you want to submit a PF contribution for the month of March, it must be done on or before April 15.

Rate of interest on delay payment of PF

If an employer is unable to pay the contribution within the time limit, he will be liable to pay simple interest at the rate of 12% per annum for each day of payment or for each day of delay.

Is there a late payment penalty charge in EPF?

Yes. On late payment of EPF challan, the following two penalties apply

Failure to deposit EPF contribution before the appointed time, the employer is charged interest of 12% / year as per Section 7Q for late payment interest.

Penalty charge for late payment under Section 14B - In case of delay or failure of challan payment, the following penalties are charged -

  • 5% interest per year for delays of up to 2 months
  • 10% interest per year for 2-4 months delay
  • 15% interest per year for a delay of 4-6 months
  • 25% interest per year for delays of more than 6 months

If you need any help on the EPF Registration feel free to contact us +91-8766393412, Our Business adviser will clear your doubt.

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