Penalty Provision in respect of delay in payment of P.F. dues

Penalty Provision in respect of delay in payment of P.F. dues
1.        Delay in deposit of P.F. dues attracts penal damages. Damages are levied at the following
           FLAT RATES:

• For 0 — 2 months delay – @ 5 % p.a.
• For 2 — 4 months delay – @10 % p.a.
• For 4 — 6 months delay – @ 15 % p.a.
• For delay above 6 months – @ 25 % p.a. (subject to a maximum of 100%)

2.        Levy of damages at lesser rates is not permissible under the EPF & MP Act.
3.        Reduction/Waiver of damages – considered only for Sick Industrial Companies having   
           rehabilitation scheme sanctioned by BIFR.

4.        Deposit dues in time – avoid penal damages.