EPFO Policies: Employer to pay big interest costs if PF not paid on time
If you are a salaried employee, you will be aware of the amount of the employee provident fund scheme that is run with the assistance of the EPFO. The agency pays a set quantity into the employee’s PF account. The employee also can pay a hard and fast sum in his/her pf account. This group of funds functions as a retirement corpus.
The worker gets the money after retirement. However, what happens if the business enterprise isn’t always paying its share of the cash? Let’s see.
If the organization has no longer been paying the worker’s proportion into his PF account, he might be liable to pay a hard and fast hobby charge, as per regulation. It is also considered against the law to no longer pay the employee’s PF contribution. The government also can genuine the cash from the enterprise as consistent with regulation with interest.
Epfo has fixed the fees of hobby on postponement in payments. It could fee an excellent of a hundred percent of the cash no longer paid together with 12 percent every year hobby.
Also Read – All about Employees Provident Fund Organization
Employees can also file a complaint with the EPFO against their employer.
Right here are the charges: if the postponement is two months or less, the agency will be liable to pay interest at five percent per annum; between two and four months, the price is 10 percent; between four and six months, the price is 15 percent; for a delay of six months or more, the company will need to pay an interest rate of 25 percent per annum.
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