Dear All,
I need some information. One of our clients has EPF and ESI dues for 8 months, and they want to clear it. My questions are:
1. What is the penal interest and damages they need to pay in the case of PF?
2. What is the interest rate and damages for ESI?
I am waiting for responses from professionals.
Thanks,
Rao
From India, Hyderabad
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7I need some information. One of our clients has EPF and ESI dues for 8 months, and they want to clear it. My questions are:
1. What is the penal interest and damages they need to pay in the case of PF?
2. What is the interest rate and damages for ESI?
I am waiting for responses from professionals.
Thanks,
Rao
From India, Hyderabad
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Dear Mr. Rao,
Penal Interest under section 7Q:
# Number of days delayed in making payment x 12% p.a.
Penal Damages under section 14B:
# Number of days delayed in making payment x 5% p.a. (Less than 2 months)
# Number of days delayed in making payment x 10% p.a. (2 months and above but less than 4 months)
# Number of days delayed in making payment x 15% p.a. (4 months and above but less than 6 months)
# Number of days delayed in making payment x 25% p.a. (6 months and above)
I have attached a worksheet for the above....
From India, Erode
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Penal Interest under section 7Q:
# Number of days delayed in making payment x 12% p.a.
Penal Damages under section 14B:
# Number of days delayed in making payment x 5% p.a. (Less than 2 months)
# Number of days delayed in making payment x 10% p.a. (2 months and above but less than 4 months)
# Number of days delayed in making payment x 15% p.a. (4 months and above but less than 6 months)
# Number of days delayed in making payment x 25% p.a. (6 months and above)
I have attached a worksheet for the above....
From India, Erode
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Is EPF Penal interest calculation and ESI penal interest calculation is same of different and if different please update me with that calculation
From India, Gurgaon
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From India, Gurgaon
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Dear Sir, Thank U very much. It is very useful to calculate the damages & interest. I have calculated & given to management, as i was under pressure. Ravi
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The information provided by the user is accurate based on the rules and provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, regarding penal interest and damages for delayed payments. (1 Acknowledge point)
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ESI INTEREST AND DAMAGE FOR LATE PAYMENT as PF-
EMPLOYEES' STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN CIG ROAD NEW DELHI
No. T-11/13/8/2001 Rev. I Dated: 8.2005
MEMORANDUM
Sub: Reduction in the rate of interest payable for delayed payment of contribution – Amendment of Reg. 31-A of ESI (Genl.) Regulations, 1950.
Sub-Section (5) of Section 39 of the ESI Act 1948 provides that if any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due, he shall be liable to pay simple interest at 12% per annum or at such a higher rate as may be specified in the Regulations until the date of its actual payment.
Provided that the higher interest specified in the Regulations shall not exceed the lending rate of interest charged by any scheduled bank.
The interest rate on commercial advances is fluctuating. The rate of interest being charged by the ESI Corporation on delayed payment of contribution is, therefore, more than the rate of interest being charged for commercial advances as well as the lending rate of interest charged by scheduled banks.
Now it has been decided by the Corporation that an employer who fails to pay the contribution within the periods specified in Regulation-31 shall be liable to pay simple interest at 12% per annum for each day of default or delay in payment of contribution. In this connection, a proviso to Reg. 31 of the ESI (Genl.) Reg. 1950 has been added and notified in the Gazette of India, Part III, Section 4 vide letter No. N-12/13/1/2005 P&D dated 6.7.2005 effective from 1.10.2005.
In Regulation 31-A of the ESI (General) Reg. 1950, the words "15%" shall be substituted by the words "12%".
The above notification was circulated vide Hqrs. letter No. N-12/13/1/2005 P&D dated 12.8.2005.
It is, therefore, requested that on all delayed payments of contribution, the interest may be charged at 12% per annum effective from 1.10.2005.
This issue has the approval of the Insurance Commissioner.
Please acknowledge receipt.
The Hindi version will follow.
(V.V.S.P. Ramachandra Rao) JOINT DIRECTOR (Rev.)
To The Regional Director/Director/Joint Director I/c Regional Office/Sub-Regional Office ESI Corporation
Copy to: All Joint Director (F)/Dy. Director (F), RO/SRO Joint Director (Vig.) NZ/SZ/WZ/EZ All Officers at Hqrs. office. All Branches at Hqrs. office. Guard File.
JOINT DIRECTOR (Rev.)
DAMAGE: # Number of days delayed in making payment x 5% p.a (Less than 2 months) # Number of days delayed in making payment x 10% p.a (2 months and above but less than 4 months) # Number of days delayed in making payment x 15% p.a (4 months and above but less than 6 months) # Number of days delayed in making payment x 25% p.a (6 months and above)
From India, Kota
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EMPLOYEES' STATE INSURANCE CORPORATION
PANCHDEEP BHAWAN CIG ROAD NEW DELHI
No. T-11/13/8/2001 Rev. I Dated: 8.2005
MEMORANDUM
Sub: Reduction in the rate of interest payable for delayed payment of contribution – Amendment of Reg. 31-A of ESI (Genl.) Regulations, 1950.
Sub-Section (5) of Section 39 of the ESI Act 1948 provides that if any contribution payable under this Act is not paid by the Principal Employer on the date on which such contribution has become due, he shall be liable to pay simple interest at 12% per annum or at such a higher rate as may be specified in the Regulations until the date of its actual payment.
Provided that the higher interest specified in the Regulations shall not exceed the lending rate of interest charged by any scheduled bank.
The interest rate on commercial advances is fluctuating. The rate of interest being charged by the ESI Corporation on delayed payment of contribution is, therefore, more than the rate of interest being charged for commercial advances as well as the lending rate of interest charged by scheduled banks.
Now it has been decided by the Corporation that an employer who fails to pay the contribution within the periods specified in Regulation-31 shall be liable to pay simple interest at 12% per annum for each day of default or delay in payment of contribution. In this connection, a proviso to Reg. 31 of the ESI (Genl.) Reg. 1950 has been added and notified in the Gazette of India, Part III, Section 4 vide letter No. N-12/13/1/2005 P&D dated 6.7.2005 effective from 1.10.2005.
In Regulation 31-A of the ESI (General) Reg. 1950, the words "15%" shall be substituted by the words "12%".
The above notification was circulated vide Hqrs. letter No. N-12/13/1/2005 P&D dated 12.8.2005.
It is, therefore, requested that on all delayed payments of contribution, the interest may be charged at 12% per annum effective from 1.10.2005.
This issue has the approval of the Insurance Commissioner.
Please acknowledge receipt.
The Hindi version will follow.
(V.V.S.P. Ramachandra Rao) JOINT DIRECTOR (Rev.)
To The Regional Director/Director/Joint Director I/c Regional Office/Sub-Regional Office ESI Corporation
Copy to: All Joint Director (F)/Dy. Director (F), RO/SRO Joint Director (Vig.) NZ/SZ/WZ/EZ All Officers at Hqrs. office. All Branches at Hqrs. office. Guard File.
JOINT DIRECTOR (Rev.)
DAMAGE: # Number of days delayed in making payment x 5% p.a (Less than 2 months) # Number of days delayed in making payment x 10% p.a (2 months and above but less than 4 months) # Number of days delayed in making payment x 15% p.a (4 months and above but less than 6 months) # Number of days delayed in making payment x 25% p.a (6 months and above)
From India, Kota
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(Fact Checked)-The interest rate for delayed ESI payments is 12% per annum from 1.10.2005. Damages are calculated as follows: - Less than 2 months: 5% p.a - 2-4 months: 10% p.a - 4-6 months: 15% p.a - Above 6 months: 25% p.a Thank you for sharing this detailed information. (1 Acknowledge point)
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Do you need more clarification on the above subject? I can help you with free of cost Lakshminaryana 9866917232
From India, Hyderabad
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From India, Hyderabad
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i am new to this field so kindly heip me about Account 21, Account 22, Account10?
From India, Vijayawada
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From India, Vijayawada
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Dear Members,
I have made a late payment of EPF for many members of my small firm. This was due to an accounting glitch as many new members were not onboarded in our internal EPF tracker, and hence we forgot to pay EPF for them for several months. It has been corrected now, and PFs for old months have been paid. Do I need to pay both interest (7Q) and damages (14B)? Or can I just pay the interest component (12% under 7Q) since we discovered the mistake ourselves and have corrected it now?
Thanks for your help.
From India, Delhi
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I have made a late payment of EPF for many members of my small firm. This was due to an accounting glitch as many new members were not onboarded in our internal EPF tracker, and hence we forgot to pay EPF for them for several months. It has been corrected now, and PFs for old months have been paid. Do I need to pay both interest (7Q) and damages (14B)? Or can I just pay the interest component (12% under 7Q) since we discovered the mistake ourselves and have corrected it now?
Thanks for your help.
From India, Delhi
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Our establishment is a partnership firm. The said firm closed all its activities since 2013. We have been allotted provident fund registration, which we want to cancel/deregister. Kindly give us the procedure and the formalities.
Thanking you,
Rushikesh
From India, Pune
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Thanking you,
Rushikesh
From India, Pune
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Thanx alot for the calculation sheet sir. it is very useful.
From India, Mumbai
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From India, Mumbai
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Dear All,
I have an Export house where a damages case of EPF has been lodged against my company. I appeared in the case on time but continually extended the deposit date. Now, I want to close this case without paying the damages amount or see if the amount can be reduced. Please guide me in detail or call me at 7503933315 if you need more information.
Thank you.
From India, Delhi
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I have an Export house where a damages case of EPF has been lodged against my company. I appeared in the case on time but continually extended the deposit date. Now, I want to close this case without paying the damages amount or see if the amount can be reduced. Please guide me in detail or call me at 7503933315 if you need more information.
Thank you.
From India, Delhi
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Dear All,
Kindly assist me with the following issue. As per the new notification of ESIC, whoever's gross salary is up to 21,000/- is covered under this scheme. How can new eligible employees (earning >15k & <21k) benefit from this? Are they eligible from the first day when the new notification is in practice, or is there a waiting period?
Please suggest.
Thanks,
T. Shukla
From India, Delhi
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Kindly assist me with the following issue. As per the new notification of ESIC, whoever's gross salary is up to 21,000/- is covered under this scheme. How can new eligible employees (earning >15k & <21k) benefit from this? Are they eligible from the first day when the new notification is in practice, or is there a waiting period?
Please suggest.
Thanks,
T. Shukla
From India, Delhi
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Dear Members, I am looking for rate slab for PF Interest and damage charges prevailing and also prior to september 2008. It is more useful, if there is any notification copy. Request for help.
From India, Bangalore
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From India, Bangalore
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EPF Penal Damages A/c No.1 Contributions , has to be added employer and employee contribution or only employee contribution. Pls guide me.
From India, Chennai
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From India, Chennai
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Dear All , Need some info.One of our client has EPF and ESI howto file nill return
From India, Visakhapatnam
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From India, Visakhapatnam
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How to calculate epf & esi contributions pleasetellme
From India, Visakhapatnam
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From India, Visakhapatnam
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(Fact Checked)-The user reply needs more details for a comprehensive answer. Calculation includes basic salary, DA, HRA, special allowance. Please refer to EPF & ESI guidelines for accurate calculation. Thank you for your question! (1 Acknowledge point)
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I have a small confusion about damage calculation in the EPF Act. Please check the following and let me know which one is the correct method for 190 days.
Method I: If the contribution for a month is Rs. 20,000/-
20000 x 25% / 365 x 190 = 2603.00
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Method 2:
20000 x 5% / 365 x 60 days = 164.00
20000 x 10% / 365 x 60 days = 329.00
20000 x 15% / 365 x 60 days = 493.00
20000 x 25% / 365 x 10 days = 137.00
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total 1123.00
======
Could someone please clarify?
Regards,
A. Karthikeyan
From India, undefined
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Method I: If the contribution for a month is Rs. 20,000/-
20000 x 25% / 365 x 190 = 2603.00
=======
Method 2:
20000 x 5% / 365 x 60 days = 164.00
20000 x 10% / 365 x 60 days = 329.00
20000 x 15% / 365 x 60 days = 493.00
20000 x 25% / 365 x 10 days = 137.00
-----------
total 1123.00
======
Could someone please clarify?
Regards,
A. Karthikeyan
From India, undefined
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To Mr. KPMS,
I am unable to understand the Excel file regarding the calculation of damages under Sec 14b. I would be grateful if you could clarify the factor that is multiplied, i.e., 25.605%, and why the factor is being deducted or added.
Regards,
Chandrani
From India, Kolkata
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I am unable to understand the Excel file regarding the calculation of damages under Sec 14b. I would be grateful if you could clarify the factor that is multiplied, i.e., 25.605%, and why the factor is being deducted or added.
Regards,
Chandrani
From India, Kolkata
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Dear All, Please provide us the details regarding late payment of ESIC contribution and what is the rate of %. Regards Bibhuti
From India, Delhi
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From India, Delhi
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IF ESIC INTEREST FOR DELAY PAYMENT IS LESS THAN 100 Rs THEN HOW WE CAN PAY ONLINE ?
From India, New+Delhi
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From India, New+Delhi
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EPF Interest 2008-2009.pdf
ESI & EPF REGISTRTION DOCUMENT.doc
ESI & EPF.xls
CiteHR.AI
(Fact Checked)-The calculation of EPF penal interest and ESI penal interest is different. EPF penal interest is calculated under Section 7Q of the EPF Act, while ESI penal interest is governed by the ESI Act. For EPF, the penal interest rate is 12% per annum, and for ESI, it is 12% per annum as well. Ensure compliance with both Acts for accurate calculations. (1 Acknowledge point)