Due date for payment of PF (Provident Fund)

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Due Date for payment of PF

Due date for payment of PF (Provident Fund)

Provident Fund (PF) is a periodic contribution by both the employer and the employee. The contribution is towards a common fund. This is to ensure that the employee is financially secure even after his employment. Provident Fund is applicable for all employers in India having more than 20 employees. In this article, we cover the due date for payment of PF and due date for filing returns.

 

What is the due date for payment of PF?

When is the due date for payment of PF – The due date for payment of PF is the 15th of each month. E.g the due date for January 20X1 will be February 15th 20X1.

What are the rates under PF?

The employer must deposit a total of 12% or 10% of the employee wages towards PF on or before the date every month. For most establishments, the PF rate of 12% would be applicable.

What if the number of employees is less than 20? When is the rate of 10% applicable for PF?

  • Establishments with less than 20 employees to contribute to PF @ 10%.
  • Sick industrial company and declared as such by the Board for Industrial and Financial Reconstruction.
  • An establishment which has accumulated losses equal to or exceeding its net worth.
  • Any establishment in following industries:
    • Jute
    • Beedi
    • Brick
    • Coir
    • Guar gum Factories.

The contributions are payable on maximum wage ceiling of Rs 15000/- by employee and employer. However, an employee, at his option, can contribute at a higher rate. In such cases, the employer is not under any obligation to pay at such higher rate.

It is possible to make Provident fund payment through the Unified Portal. Click here to know more.

What is the Penalty in case of delayed deposit of PF?

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

S.NoTime-Period of DelayRate of Penalty
1Delay for up to 2 months5% per annum
2Delay ranging from 2 months to 4 months10% per annum
3Delay ranging from 4 months to 6 months15% per annum
4Delay exceeding 6 months25% per annum (It may correspondingly go up to 100%)

Penalties cannot be levied at a lesser rate than what is specified. The date of debit from the employers account may be considered as the date of payment of penal damages. However, it is possible to get a waiver of penalties for sick industrial companies having rehabilitation scheme sanctioned by the BIFR.

What is the due date for filing PF return (Provident Fund Return)?

While payments are by the 15th, the due date for filing returns is the 25th. E.g the due date for January 20X1 will be February 25th 20X1. Further, there is also an annual PF return. It is due on the 25th of April for the year ended on 31st March.

Is there grace period for payment of PF and does it affect the due date for payment of PF?

Earlier, a grace period of five(5) days was available to the employers to remit the PF contribution. Hence, employers could pay the PF contribution within 20 days of the next month. However, the grace period is no longer in place. Hence, employers must now deposit their contributions by the 15th.

What if the due date for payment of PF falls on a public holiday?

Before withdrawal of the grace period, if the due date for payment of PF was on a public holiday, there was a penalty on employers for paying after the due date, even if it was a delay of one day. However, After withdrawal of the grace period, the above scenario would not attract penalties. That is, if the due date falls on a public holiday & payment made is on the next working day, no penalties are attracted.

Incase you have any questions about the article, then drop us a mail at communications@goforfiling.com.

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