Provident Fund (PF) Due Date

Provident Fund (PF) is a periodic contribution by both the employer and the employee towards a common fund, to ensure that the employee is financially secure during the course of his retirement. Provident Fund is applicable for all employers in India having more than 20 employees. In this article, we look at some of the important Provident Fund due date applicable for an employer in India.

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 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 and which 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 employer is not under any obligation to pay at such higher rate. Provident fund payment can be made through the Unified Portal.

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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.

Withdrawal of Grace Period for PF Deposit

Earlier, a grace period of five days was allowed to the employers to remit the PF deposit, thereby affording the employer a 20 period window in a given month. This can be attributed to the manual calculation of remuneration and dues, which was time-consuming. Such a delay is now being avoided, thanks to the electronic computation of wages and EPF liabilities. Moreover, the contributions are now deposited through internet banking. Taking this into perspective, the EPFO decided to withdraw the grace period that was previously afforded to the employers. Hence, the employers must deposit their contributions by the 15

th of every month.

PF Due Date Falling on Public Holiday/Sunday

Previously, when grace period was allowed, employers were levied with penal damages for payments deposited by them after the due date, even if the particular due date was a public/bank holiday. After EPFO’s recent update on due date, remittances made under such circumstances will be treated as a normal payment, and will not incur penal damages.

Penalty for Delayed Payment

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

S.No	Time-Period of Delay	Rate of Penalty
1	Delay for up to 2 months	5% per annum
2	Delay ranging from 2 months to 4 months	10% per annum
3	Delay ranging from 4 months to 6 months	15% per annum
4	Delay exceeding 6 months	25% per annum (It may correspondingly go up to 100%)

Damages cannot be levied at a lesser rate than what is specified. However, exceptions in terms of reductions or waiver of damages can be extended to sick industrial companies having rehabilitation scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR). The date of debit from the employers account may be considered as the date of payment of penal damages. Occurance of delay due to delayed credit in EPFO's accounts or delayed transacting by the banks will be dealt with in accordance with the banking agreement with the various banks.

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Frequently Asked Questions

Common questions about Provident Fund Due Dates and Penalties India.

The Provident Fund (PF) payment is due on the 15th of each month. The employer must deposit a total of 12% or 10% (depending on the type of establishment) of the employee wages towards PF on or before this date every month.

No, the PF contribution rate is not the same for all establishments. For most entities, the PF rate of 12% (12% by employer and 12% by employee) is applicable. However, a rate of 10% is applicable for certain establishments like those with less than 20 employees, sick industrial companies, establishments with accumulated losses equal to or exceeding their net worth, and establishments in certain industries like jute, beedi, brick, coir, guar gum, and factories.

The contributions are payable on a maximum wage ceiling of Rs 15,000/- by both the employee and the employer. However, an employee can pay at a higher rate, but the employer is not obligated to pay at such a higher rate.

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

Earlier, a grace period of five days was allowed for employers to remit the PF deposit, but this grace period has now been withdrawn by the EPFO. Employers must deposit their contributions by the 15th of every month.

If the PF due date falls on a public holiday or Sunday, remittances made under such circumstances will be treated as a normal payment and will not incur any penal damages.

Delayed remittance of PF deposit will incur penal damages. The penalties range from 5% per annum for a delay of up to 2 months to 25% per annum (and potentially up to 100%) for a delay exceeding 6 months.

Exceptions in terms of reductions or waiver of damages can be extended to sick industrial companies having a rehabilitation scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR).

Provident Fund payments can be made through the Unified Portal.

In case of delay due to delayed credit in EPFO's accounts or delayed transacting by banks, the situation will be dealt with in accordance with the banking agreement with the various banks.