PROVIDENT FUND

Provident fund is a social security system that was introduced for the purpose of encouraging savings among employees, so as to benefit them during the course of their retirement. Contributions are made by the employer and the employee on a monthly basis. PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions.

PF DUE DATE

PF has two due dates they are payment due date and ECR filing due date.

PF PAYMENT DUE DATE:

This is the date by which you have to submit the PF which you will deduct from your employees’ salary. This has to be done on or before 15th of next month. i.e., if you want to deposit PF contribution for the month of June, then it has to be done on or before 15th of July.

PF RETURN DUE DATE:

With the new ECR in place, filing and payment can be both done at the same time. Hence, the PF return due date is the same as that of payment. I.e., on or before 15th of every month.

•  PF payment :- On or before 15th of every month
•  ECR filing :- On or before 15th of every month
•  PF annual return :- 25th April of every year

PF DELAY PAYMENT INTEREST

An employer who does not pay the contribution within the time limit shall be liable to pay a simple interest at the rate of 12% per annum for each day of the default or delay in payment of contribution.

PF PENALTY

Delayed remittance of PF deposit will incur penal damages. The charges as specified by the EPFO, are as follows:

•  Delay for up to 2 months :- 5% per annum
•  Delay ranging from 2 months to 4 months :- 10% per annum
•  Delay ranging from 4 months to 6 months :- 15% per annum
•  Delay exceeding 6 months :- 25% per annum (It may correspondingly go up to 100%)