PF Interest not credited: Company did not deposit the PF money? Employee can take this action– know details
PF Balance Check: EPFO regularly updates customers about monthly deposits in their PF accounts through SMS alerts. Employees can also check the deposits made in the PF account every month by logging on to the EPFO portal.
PF Login: If you are an employee working with any company or organization in India, then you have to give a certain amount of your salary in the EPF scheme. Along with this, your employer also gives the same amount and it gets added to your Provident Fund (PF). This particular amount can be used by the employee or the nominee in case of emergency or at the time of retirement. However, many times it happens that the employer does not deposit the amount in the PF account of the employee. After which the employee can also take some steps.
Have to contribute so much
Actually, the employer has to deposit the amount deducted in the Employees Provident Fund every month in the PF account of the employee. As per the existing Employees’ Provident Fund Organization (EPFO) rules, employees and employers contribute 12 per cent of Basic Pay and Dearness Allowance (Basic Pay + DA) to the PF account every month. Of the employer’s share, 8.33 per cent goes to the Employees’ Pension Scheme (EPS), and the remaining 3.67 per cent is deposited in the PF account.
Can check amount
EPFO regularly updates the subscribers about monthly deposits in their PF accounts through SMS alerts. Employees can also check the deposits made in the PF account every month by logging on to the EPFO portal. The employer has to deposit the monthly deduction made towards EPF in the PF account of the employee. However, many employers fail to deposit the PF amount many times, after which the employee can also take action.
Employee can take this action–
- Employees can file a complaint with EPFO against the employer for non-deposit of PF contribution.
- After the complaint is filed, the Retirement Fund Regulatory Body inquires against the employer. If during the investigation it is found that the amount of EPF was deducted but not deposited, then legal action will be taken against him.
- EPFO authorities can also charge interest for late deposit of EPF deduction and initiate recovery action.
- Under the EPF Act, penalty will be levied for non-deposit of the amount deducted towards provident fund. The EPFO can also file a police complaint against the employer under sections 406 and 409 of the Indian Penal Code (IPC) for criminal breach of trust.
- The EPFO is empowered to recover damages under 14-B of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, where the employer defaults in payment of any contribution to the PF account.
- EPFO will give a reasonable opportunity of being heard to the employer before initiating punitive action.
- As per extant tax rules, if employers fail to make timely deposits in PF account, they cannot claim tax exemption for EPF contribution.