PF and ESI Monthly Payment

Paying your Provident Fund (PF) and Employee State Insurance (ESI) contributions monthly is paramount for ensuring both financial security and comprehensive healthcare coverage for your employees. PF contributions diligently help build a robust retirement corpus, while ESI ensures vital access to critical medical benefits. Timely payment not only fulfills stringent legal obligations but also significantly fosters employee trust and well-being, thereby contributing to a consistently harmonious and productive work environment. Easypaytax ensures your compliance is always on time.

Provident Fund Payment Due Date

Provident Fund (PF) payments are due on the 15th of each month. Employers must meticulously deposit a total of 12% or 10% of the employees’ wages towards PF on or before this stipulated date every month. For most entities, the standard PF rate of 12% would be applicable. The reduced 10% PF rate is specifically applicable for:

  • Any establishment employing less than 20 employees.
  • Any sick industrial company officially declared as such by the Board for Industrial and Financial Reconstruction.
  • Any establishment which has, at the end of any financial year, accumulated losses equal to or exceeding its entire net worth.
  • Any establishment operating in the following industries:
    • Jute
    •  Beedi
    •  Brick
    •  Coir
    •  Guar gum Factories.
  • The contributions are payable on a maximum wage ceiling of Rs 15000/- by both employee and employer. However, an employee can opt to pay at a higher rate, though in such a case, the employer is not under any obligation to match or pay at such a higher rate. Easypaytax ensures accurate calculation and timely payment.
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Provident Fund Return Due Date

Provident fund returns must be filed by all entities holding PF registration monthly. The monthly PF return is due on the 25th of each month. Furthermore, a final PF return for the financial year ending on March 31st is due on the 25th of April. Easypaytax ensures timely and accurate PF return filings.

ESIC payment

The due date for payment of ESIC is the 15th of the following month. Regulation 31 has been specifically amended, stipulating that the contribution in respect of any employee shall be paid within 15 days of the last day of the month of the calendar in which the contributions fall due. Easypaytax provides timely reminders and processing for ESIC payments.

Penalty for Delayed Payment

Delayed remittance of PF deposits will incur significant penal damages. The penal charges, as specifically outlined by the EPFO, are as follows:

  • Time-Period of Delay - Rate of Penalty
  • Delay for up to 2 months - 5% per annum
  • Delay ranging from 2 months to 4 months - 10% per annum
  • Delay ranging from 4 months to 6 months - 15% per annum
  • Delay exceeding 6 months - 25% per annum (It may correspondingly go up to 100%)

Easypaytax’s timely payment services help businesses entirely avoid these substantial penalties, ensuring full compliance.

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