August 24th, 2016
Provident Fund(PF) amount is an important part of the remuneration structure of any salaried employee. Every month the employer deducts 12% of the basic salary+DA of each employee, adds some amount from the company side for each employee and deposits the total pf amount in Employees’ Provident Fund Organisation (EPFO) account. After this, the money is deposited into individual employees EPFO accounts
There are many instances where the companies deduct contribution towards PF from their employee’s salary but do not deposit with their EPF trust or with EPFO. Most of the employees are not aware of rules and regulations which guide the PF scheme. Employers use this lack of understanding to their advantage.
Employee’s Provident Fund, in the year 2013, introduced an online enquiry platform to check the fund balance. The idea was to give employees quick access to information related to their PF accounts.
Before the introduction of this service, finding out EPF balance was not an easy task. One had to physically visit the local EPF office and fill paper forms to avail information. Now it is much easier.
EPFO says if a company is found to be non-compliant with its PF deposits, it will not only have to pay the dues but also pay an interest penalty on the same, depending on the number of days of delayed payment.
- If two months and above but less than four months, 10 per cent a year
- If four months and above but less than six months, 15 per cent a year
- If six months and above, 25 per cent a year