EPF Account Holder Update: Employers should ensure this! That Employees’ Provident Fund Organization contribution should be made on time! According to a decision given by the Supreme Court in February 2022, the employer is required to cover the damages if there is a delay in the Employees Provident Fund (EPF) contribution of an employee.
EPF Account Holder Update
Note that employers who default in contribution are liable to pay interest on the amount due under Section 14B and Section 7Q of the Employees’ Provident Fund Organization and Miscellaneous Provisions Act, 1952!
- Damages are levied at the following rates
- For delay of 0 – 2 months: 5 per cent per annum
- For delay of 2 – 4 months: 10 percent per annum
- For delay of 4-6 months: 15 per cent per annum
- For delay of more than 6 months: 25 per cent per annum
EPF Account Holder Update
Employees’ Provident Fund Organization has said! That loss is limited to 100 percent of the outstanding amount. Note that a simple interest rate of 12 percent per annum is payable on the amount due for the entire period of delay. As per the latest tweet by EPFO, “Employers who default on contribution are liable to pay loss and interest on the amount due.
Learn this also :- Online Business Ideas: Earn good money without investing, start this online business
How much should the employer contribute to EPF?
The Employees’ Provident Fund Organization and Miscellaneous Provisions Act, 1952 mandates that both the employee and the employer contribute to the EPF account at the rate of 12 per cent of the employee’s basic salary, dearness allowance and retention allowance, if applicable. Account) match each other’s contribution!
Employees’ Provident Fund Organization
Employees get full contribution in EPF account. In contrast, 8.33 percent of the employer’s 12 percent pay is put into the employee pension scheme. While the remaining 3.67 percent is put into the EPF account! Out of the 12 percent contribution of the employer, 8.33 percent is deposited in the Employees Pension Scheme and the remaining 3.67 percent is deposited in the EPF account. Therefore, a total of 24 percent of the employee’s salary is contributed to his EPFO (Employees’ Provident Fund Organisation) account.