Hi Seniors,
Please guide me on PF Contribution as per below case:
For any New Joinee we processed salary for two months together in April(March & April) & Pay PF Contribution on Arrear payment & Current month contribution on time before 15th of May, then should i need to pay any penalty on late contribution for March?
Please share if any notification or official reference for this scenario
Regards, Shalaka from Mumbai
From India, Mumbai
Please guide me on PF Contribution as per below case:
For any New Joinee we processed salary for two months together in April(March & April) & Pay PF Contribution on Arrear payment & Current month contribution on time before 15th of May, then should i need to pay any penalty on late contribution for March?
Please share if any notification or official reference for this scenario
Regards, Shalaka from Mumbai
From India, Mumbai
Penalties under EPF Act : Offense & Penalty
False statement or representation for avoiding payment or enabling to avoid such payment. 1 Year or Rs 5,000 or Both
If deduction has been made from employee wages and not submitted - Atleast 1 year and fine of Rs 10,000
If contribution is not properly made in accordance of section 6 - Atleast 6 months and fine of Rs 5,000
If no return or compliance’s is made or made in violation of laws - Atleast 1 month, that can be extended to 6 month and fine of Rs 5,000
If employer fails to pay provident fund to any employee, he is obligated to pay him the same with additional 12 Percent simple interest.
See the website in footnote for details and case study
From India, Kolkata
180False statement or representation for avoiding payment or enabling to avoid such payment. 1 Year or Rs 5,000 or Both
If deduction has been made from employee wages and not submitted - Atleast 1 year and fine of Rs 10,000
If contribution is not properly made in accordance of section 6 - Atleast 6 months and fine of Rs 5,000
If no return or compliance’s is made or made in violation of laws - Atleast 1 month, that can be extended to 6 month and fine of Rs 5,000
If employer fails to pay provident fund to any employee, he is obligated to pay him the same with additional 12 Percent simple interest.
See the website in footnote for details and case study
From India, Kolkata
salary has to be processed in the same Month including for New Joined Employees.Similarly PF Contributions also to be remitted accordingly.In PF Records you are showing actual date of joining.Stop this practice forthwith.In case of Death, PF department may refuse to entertain Claim on the ground that Employee has not been covered & contributions not remitted.You have not mentioned valid reasons for following practice of remitting PF Contributions after 2 Months for new Joined Employees.
From India, New Delhi
From India, New Delhi
Dear Sir,
Thanks for the update.
Actually I am from staffing industry. We consider attendance from 21st of last month to 20th of current month, but Payroll processed from 1st to 31st considering 10 days advance present, so new joinee after 21st of that month get paid in the next month for last month & current month.
My Management is not allowing this as per logic explained by you , but client is forcing to process new joinee after 21st in next month as arrear payment. they dont want to process 2 lots for payroll
Regards,
Shalaka
From India, Mumbai
Thanks for the update.
Actually I am from staffing industry. We consider attendance from 21st of last month to 20th of current month, but Payroll processed from 1st to 31st considering 10 days advance present, so new joinee after 21st of that month get paid in the next month for last month & current month.
My Management is not allowing this as per logic explained by you , but client is forcing to process new joinee after 21st in next month as arrear payment. they dont want to process 2 lots for payroll
Regards,
Shalaka
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf