EPFO UPDATE: Many times it is seen that the financial condition of the companies gets worse. In such a situation, some companies stop the contribution given every month in the EPF account of the employees to save money. To deal with this situation, some rules have been implemented by EPFO, the organization running EPF. Let us tell about it in the report.
If you are an EPFO subscriber, then according to the guidelines issued by EPFO, every employer has to deposit the contribution given in the EPF account of the employees by 15th.
What happens when the company delays the contribution to EPF?
If there is any kind of delay on the contribution to EPF, then penalty and interest is imposed on the company for this. For this, in a tweet made on behalf of EPFO, it was told that if the employer fails to contribute, then the penalty and interest have to be paid on the remaining amount.
If this delay is less than 2 months, then a penalty of 5 per cent will be imposed. 10% for 2 months to 4 months, 15% for 4 to 6 months and 25% for less than 6 months.
Employees will take these steps for not depositing money in EPF
If there is any kind of delay in giving contribution to EPF by the company, then the employee can file a complaint against the employer in EPFO, EPFO can recover that amount along with interest and penalty.
On the other hand, if a company delays the employee in PF contribution, then according to Section 7Q of the EPF Act 1952, the employer will have to pay 12% interest on the remaining amount.
