Tuesday, September 30, 2025
spot_img

EPFO warns default employers not contributing employee PF fund

spot_img
- Advertisement -

One of the World’s largest Social Security Organisations, The Employees’ Provident Fund Organisation (EPFO) warned employers defaulting on contributions, are liable to pay damages and Interest on the amount due.

EPFO said that employers defaulting on contributions are liable to pay Damages u/s 14B and interest u/s 7Q on the due amount.

The employers should ensure timely payment of EPF dues to avoid damages and interest. In case of delay in payment by the employers will cause the following:-

  • Damages are restricted up to 100% of the amount in arrears.
  • Simple Interest @12% is payable on the amount due for the entire period of delay.

Damages are levied at the following interest rates:

Period of DefaultRate of Damages
Period less than 2 months5% per Annum
2-4 months10% per Annum
4-6 months15% per Annum
More than 6 months25% per Annum

Employers should ensure timely payment of EPF dues to avoid damages and interest.

EPFO has recently shared a tweet through an official X (formally Twitter) handle saying, “Attention, Employers! Timely payment of Employee Provident Fund (EPF) contributions is important.”

“It incurs both damage and interest due to delay in payment. Be compliant to avoid penalties”, the post added.

Recently, In February the Employees’ Provident Fund Organisation (EPFO) fixed the interest rate as 8.25 % for FY 2023-24.

The Central Board recommended an annual rate of interest of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24.

This interest rate will be officially notified in the government gazette after approval by the Ministry of Finance. Subsequently, EPFO will credit the approved rate of interest to its subscribers’ accounts.

Note: We are also on WhatsApp and YouTube, to get the latest news updates, Join our Channels. WhatsApp– Click here, to subscribe to YouTube – Click Hereand for LinkedIn– Click here.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Survey Shows Salary Budgets Will Increase 3.0% in 2022

The median projected percentage change for total salary budgets...

IndiGo to reinstate pilot salaries to pre-Covid levels from November

India’s largest passenger airline, IndiGo is planning to restore...

Paytm Employees Complain to Labour Ministry Over Layoffs

According to Moneycontrol, several employees of the fintech platform...

Moglix brings Internship Scheme for Defence Personnel’s Children

One of Asia’s largest and fastest-growing B2B Commerce companies,...

TCS jobs scam: 6 employees fired, bans many staffing firms

Tata Sons Chairman N Chandrasekaran said on June 29 that...

TCS modifies its appraisal process to make employees WFO

As per Businesstoday reports, an Indian multinational IT services and...

The Future of Pay in India 2025: Employee Financial Wellbeing

As India continues to experience steady economic growth, businesses...

TCS iON offers a 15-day free digital certification program

TCS iON subsidiary of India’s biggest IT company Tata Consultancy...

Related Articles

Sheenu Pradhan
Sheenu Pradhanhttps://sightsinplus.com/
Sheenu Pradhan, Editor Content, SightsIn Plus. She has over 8 years of experience in human resources. Prior to this, she has been associated with Wictor Chemicals India, Wipro, and Shakti Plas Industry.