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EPFO Rules: A part of the salary of the employed person is deposited in the PF account. And a part is deposited by the company in which that employee works. Employees Provident Fund Organization transfers interest only to those accounts in which EPF (EPFO) contribution has been made on time. In February 2022, the Supreme Court had said in its order that if a company does not transfer money to the employee’s PF account on time and because of that the employee suffers loss of interest, then the company will have to compensate him.
The company will have to pay compensation
According to Section 14B and 7Q of the Employees Provident Fund Act, if a company has delayed its contribution to the EPFO account of its employee, then it will have to compensate the loss as per the rules. This amount will depend only on how late the company has transferred the money to the employee’s EPFO account. It is worth noting that this fine can also be up to 100 percent. The company will have to deposit this fine in the employee’s account as arrears. Along with this, the company will have to pay interest at the rate of 12 percent on the outstanding amount.
- 0-2 months-5%
- 2-4 months – 10%
- 4-6 months – 15%
- More than 6 months – 25%
Employers defaulting on contributions are liable to pay Damages & Interest on the amount due.#AmritMahotsav #epfo #PF @PMOIndia @byadavbjp @Rameswar_Teli @LabourMinistry @mygovindia @PIB_India @MIB_India @AmritMahotsav pic.twitter.com/19ZLL5ohA2
— EPFO (@socialepfo) February 17, 2023
In case of emergency, you can use the money deposited in PF
A part of the salary of every employed person is deposited in the PF account. This money is 12 percent of the basic salary of the employee. At the same time, the company also deposits 12 percent in the PF account. Out of this, 8.33 per cent is deposited in the Employees’ Pension Scheme. And the remaining 3.67 percent is deposited in the EPFO account. You can withdraw this money in case of emergency if needed. This money can be withdrawn for work like marriage of children, medical emergency, construction of house etc. At the same time, after retirement, you can withdraw the total deposit amount in lump sum.
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