EPFO Delayed Payment of Contributions: Do's and Don'ts

Under the Employees' Provident Fund Organisation (EPFO), damages may be imposed on employers for non-compliance or delays in depositing contributions. Employers are liable to pay damages for delayed EPF, EPS, and EDLI contributions remittance under Section 14B of the EPF & MP Act, 1952.
Damages are calculated as a percentage of the amount in arrears, depending on the delay duration:
Up to 2 months: 5%
2-4 months: 10%
4-6 months: 15%
Beyond 6 months: 25%
In addition to damages, 12% annual interest under Section 7Q is charged on delayed payments until the dues are cleared. Persistent defaulters may face legal action, including prosecution under Section 14 of the Act. Employers can request a waiver of damages under special circumstances, subject to approval by the EPFO authorities. Employers must comply with EPFO regulations to avoid financial and legal repercussions.
Submit accurate and timely ECR for all eligible employees. Never submit inaccurate or fraudulent data in ECR filings. Address any EPFO queries or notices within stipulated timelines.
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