Employees Provident Fund: If the company has not deposited the money in your PF account, what are your rights? Where can complain – where to complain if company does not deposit money in pf account
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How much penalty will have to be paid for not depositing money
If an employee delays from 0 to 2 months, then he will have to pay a penalty of 5 percent per year. Similarly, 10 percent per annum will have to be paid for a delay of 2 to 4 months, 15 percent per annum for a delay of 4-6 months. The Employees’ Provident Fund Organization said the loss is limited to 100 per cent of the outstanding amount.
Employees can complain here
If the company deducts money from the employee’s salary and does not deposit it in his PF account, then the employee will first have to lodge a complaint with the EPFO. After this EPFO will inquire about that employer. If it becomes clear in the inquiry that the company deducted the money but did not deposit it in the PF account, then EPFO will take legal action.
How much money has to be deposited in pf account
Under the Employees’ Provident Fund and Miscellaneous Provisions Act 1952, the employee has to contribute 12% of the basic salary. The same amount is also deposited by the company in the PF account of other employees. Of the 12 per cent company contribution, 8.33 per cent is deposited in the Employees’ Pension Scheme and the remaining 3.67 per cent in the EPF account.
EPFO alerts every month through SMS
EPFO gives information about the money deposited in the PF account to its subscribers every month through SMS alerts. If an employee wishes, he can also know the balance of his PF account every month by login to the EPFO portal. From this, it will be known whether money is being deposited in the account or not.
It is necessary to deposit money in pf account within 15 days
It is necessary for the company to deposit the money in the PF account within 15 days of the release of the last month’s salary. However, many employers are unable to deposit money in the employee’s PF account on time. In such a situation, there are many ways with the help of which the employees can deposit money in the PF account.
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