What is PF penal damage?

Delay in deposit of P.F. dues attracts penal damages. Damages are levied at the following FLAT RATES: For 0 — 2 months delay – @ 5 % p.a. For 2 — 4 months delay – @10 % p.a. For 4 — 6 months delay – @ 15 % p.a. For delay above 6 months – @ 25 % p.a. (subject to a. maximum of 100%)

What is 14B 7Q damages in PF?

If an employer makes payment of dues after the due date, he/she is liable to pay damages under Section 14B and interest under section 7Q. When a remittance is deposited on the unified portal after due date, the system will automatically calculate 14B/7Q, and generate challan for online payment of the same.

What are the penalties provided for various Offences committed under the EPF and Miscellaneous Provisions Act 1952?

(2) A scheme framed under this Act may provide that any person who contravenes or makes default in complying with any of the provisions thereof, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

How is penalty calculated for late payment of PF?

Penalty for late payment: Under Section 14B, the following penalties need to be incurred in case of failure of EPF Challan payment.

  1. 5% interest p.a for a delay of upto 2 months.
  2. 10% interest p.a for a delay of 2-4 months.
  3. 15% interest p.a for a delay of 4-6 months.
  4. 25% interest p.a for a delay of more than 6 months.

What is Section 14B of Provident Fund Act?

Damages under section 14B of the EPF & MP Act can be recovered from the transferee – The Employees Provident Funds and Miscellaneous Provisions Act, 1952. Liability to pay EPF contribution and damages would be joint and several by both the transfer or and trans- feree companies.

What is Section 7A in EPF?

Section 7A is the provision under which PF commissioners (who are vested with the powers of a civil court), can initiate an inquiry, by order, to determine (i) the applicability of the EPF Act to an establishment in case of a dispute; and (ii) to determine amounts due from any employer under the EPF Act and its schemes …

What is 14B hearing?

How is interest and damage paid in EPF?

Process for EPF Payment Online

  1. Log in to the EPFO portal using your Electronic Challan cum Return (ECR) credentials.
  2. Check whether the details such as establishment ID, Name, Address, Exemption status, etc.
  3. Go to the ‘Payment’ option from dropdown list and select ‘ECR Upload’

What is the latest amendment in PF?

New EPF Rules 2021 – The Latest Amendments As per EPFO directives, seeding KYC’s (Aadhaar) is mandatory for all employees. Otherwise, the contribution of monthly benefits and subsequent interest will not take place.

What is Supreme Court Judgement on PF?

Employer must pay damages for delay in payment of EPF contribution, rules SC. The Supreme Court today said if an employer fails to deposit the EPF contribution of the Employees’ Provident Fund (EPF) in time, it is liable to pay the damages to the employee.

What are the damages levied under EPF&MP Act?

Damages are levied at the following FLAT RATES: 2. Levy of damages at lesser rates is not permissible under the EPF & MP Act. 3. Reduction/Waiver of damages – considered only for Sick Industrial Companies having rehabilitation scheme sanctioned by BIFR.

What are the administrative charges associated with EPF?

Ans : There is no change in the EPF administrative charges (0.5% of EPF wages subject to minimum prescribed) and EDLI contributions (0.5% of wages) both payable by employers. 362 – How is benefit availed?

What is the 24% EPF payment scheme?

As part of this package, with the objective to prevent disruption in the employment of low wage earning employees and support businesses employing less than one hundred employees, the Central Govt. has decided to pay 24 percent of the monthly wages into their EPF accounts for three months.

What is the effect of reduction in statutory rate of EPF contributions?

Ans : As a result of reduction in statutory rate of contributions from 12% to 10%, the employee shall have a higher take home pay due to reduction in deduction from his pay on account of EPF contributions and employer shall also have his liability reduced by 2% of wages of his employees.