PF and ESI Monthly Payment

Paying your Provident Fund (PF) and Employee State Insurance (ESI) contributions monthly is crucial for ensuring financial security and healthcare coverage for employees. PF contributions help build a retirement corpus, while ESI ensures access to medical benefits. Timely payment not only fulfills legal obligations but also fosters employee trust and well-being, contributing to a harmonious work environment.

Provident Fund Payment Due Date

Provident Fund (PF) payments are due on the 15th of each month. The employer must deposit a total of 12% or 10% of the employee's wages towards PF on or before this date every month. For most entities, the PF rate of 12% would be applicable. The 10% PF rate is applicable for:

  • Any establishment in which less than 20 employees are employed.
  • Any sick industrial company that has been 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 and

  • Any establishment in following industries:

    • Jute
    • Beedi
    • Brick
    • Coir
    • Guar gum Factories.

       

  • The contributions are payable on maximum wage ceiling of Rs 15000/- by employee and employer. However, an employee can pay at a higher rate and in such case, the employer is not under any obligation to pay at such higher rate.
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Provident Fund Return Due Date

Provident fund return must be filed by all entities having PF registration every month. PF return is due on the 25th of each month. Further, a final PF return is due on the 25th of April for the year ended on 31st March.

ESIC payment

Due date for payment of ESIC is 15th of following month. Regulation 31 stands amended whereby the contribution in respect of any employee shall be paid within 15 days of the last day of the calendar month in which the contributions fall due.

Penalty for Delayed Payment

Delayed remittance of PF deposit will incur penal damages. The penal charges, as specified by the EPFO, are as follows:

Delayed remittance of PF deposit will incur penal damages. The penal charges, as specified 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%)

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