The EPFO-managed employee provident fund scheme is well-known to salaried workers. The employer deposits a predetermined sum into the employee’s PF account. The worker also contributes a predetermined amount to his or her PF account. This fund functions as a retirement corpus when combined.
After retirement, the employee receives the funds. But what happens if the employer does not contribute his fair share? Let’s look at it.
In accordance with the law, the employer will be required to pay with a fixed interest rate if he has not been contributing to the employee’s PF account. Nonpayment of an employee’s PF contribution is also a crime. In accordance with the law, the government can also demand payment from the employer, with interest.
The interest rates for late payments have been set by EPFO. It may impose a fine equal to one hundred percent of the unpaid amount and annual interest of twelve percent.
EPFO is another place where employees can file a complaint about their employer.
Rates are as follows: The employer will be responsible for paying interest at a rate of 5% per year if the delay is less than two months; between two and four months, the rate is 10%; The rate is 15% between the ages of 4 and 6 months; The employer will be required to pay annual interest of 25% for delays of at least six months.
