What To Do If Employer Doesn't Deposits Money In Your EPF A/c Every Month?

As per the EPF rules, 12% of the employee's salary i.e. basic plus dearness allowance/DA needs to be contributed towards the employee's EPF account. A similar contribution is also to be made by the employer and from it 8.33% is deployed towards the EPS or Employees Pension Scheme and the balance to the EPF account. This is a mandate which needs to be adhered to by the employer strictly month on month.

Pertinently, whenever the contribution is made to an employee's EPF, EPFO sends an SMS to the employee's registered mobile number.

What To Do If Employer Doesn't Deposits Money In Your EPF A/c Every Month?

What if employer doesn't transfers the mandatory EPF contributions to an employee's EPF?

In a case when the employer does not adheres to the mandate and fails to transfer EPF contribution to an employee's EPF, the employee can lodge a complaint with the EPFO for the non-deposit of EPF contributions.

"Employees may file a complaint before the EPFO regarding non-deposit of PF contribution which may potentially lead to an inspection out by the authority. Thereafter, the statutory enquiry may commence wherein employers, in addition to their contribution, may be required to pay employees contribution as well," Suyash Srivastava, Partner at DSK Legal is cited as saying in a report.

"In the event, the contribution is deducted but not deposited, such non-compliances are viewed very strictly and May warrant criminal action," he added.

Further experts suggest that the PF managing body-EPFO may resort to penal provisions under the EPF Act and file a police complaint u/s 406/409 of the Indian Penal Code (IPC) for such a non-compliance by employers.

"In case of default by the employer, the Employees Provident Fund Organization (EPFO) can invoke penal provisions of The Employees' Provident Funds And Miscellaneous Provisions Act, 1952 ("Act") to recover the dues from the employer. Complaint can be lodged with Police under section-406/409 of IPC by the EPFO for action against such employers," Anushkaa Arora, Principal and Founder of ABA Law Office is quoted as saying in the report.

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