EPFO Warns Defaulter Employers: Its an employer’s duty to contibute provident fund to their employee’s account every month. However, if the employer defeaults on PF contributions, EPFO has stern warning for them.

In a tweet on Thursday, Employees Provident Fund Organisation (EPFO) warned employers missing PF contribution to their employees’ PF accounts. “Employers defaulting on contributions are liable to pay damages u/s 14B and interest u/s 7Q on the amount due,” EPFO said. 

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.#EmployersLiability #EPFOwithYou #EPFO #EPF #PF #HumHaiNa #पीएफ #ईपीएफ pic.twitter.com/bbREOmOlwh

— EPFO (@socialepfo) March 7, 2024

The EPFO said that employer failing to contribute to EPF for different duration will have to pay penalty at different rates of damages. In this write-up, we will tell what are EPFO rules for defaulter employers.

In its tweet, EPFO says that if the duration of default (of not contributing to EPF) is less than two months, the employer has to pay 5 per cent per annum of the total contribution to the employee’s fund.

Those of who default for two to fur months will have to pay damages at 10 per cent per annum.

For missing contributions to the employee’ PF account, the employer is bound to pay penalty 15 per cent per annum of the total contribution.

If the employer misses it for more than six months, the penalty is 25 per cent per annum of the total contribution.

“Damages are restricted up to 100 per cent of the amount in arrear. Simple interest at 12 per cent p.a. is payable on the amount due for the entire period of the day.

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