Provident Fund is a crucial part of your retirement savings. By defaulting on PF deposits, your employer may put your financial future at risk. The Employees’ Provident Fund Organisation keeps urging that employers should ensure timely payment of EPF dues to avoid damages and interest.
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Employees’ Provident Fund (EPF) Scheme is a mandatory contributory provident fund scheme for employees in certain industries and establishments. Under this scheme, both the employer and the employee contribute towards EPF. The accumulated amount in the EPF account is payable to the employee at the time of retirement or on withdrawal from service.
PF Default By Employer
It should be noted that employers defaulting on contributions are liable to pay damages and interest on the amount due, as per the rates fixed by EPFO. An employee can raise a complaint with EPFO, if their PF amount is deducted from the salary but not credited in their EPF account.
The first step is to verify that your employer has not deposited your PF contributions. You can check your PF account statement online through the EPFO Member Portal or by contacting your PF office.
Damages & Interest Payable To EPFO By Employer
Employers defaulting on contributions are liable to pay damages under section 14B and interest under section 7Q on the amount due.
Damages are levied at the following rates;
| Period of default | Rate of damages |
| Less than 2 months | 5%/annum |
| 2-4 months | 10%/annum |
| 4-6 months | 15%/annum |
| More than 6 months | 25%/annum |
Damages are restricted upto 100% of the amount in arrear. Simple interest @12%/annum is payable on amount due for the entire period delay.
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How To File Complaint If Employer Defaulted Your PF Deposit Into Your EPF Account?
File a complaint online: The most convenient way to file a complaint is through the EPFiGMS (EPF i Grievance Management System) portal. You can register a complaint by providing your details, including your UAN (Universal Account Number), employer’s establishment code, and the nature of your grievance.
File a written complaint: If you are unable to file a complaint online, you can submit a written complaint to your PF regional office. The complaint should be addressed to the Regional Provident Fund Commissioner and should include your details, employer’s details, the nature of the grievance, and supporting evidence.
EPFiGMS
EPFiGMS is a customised portal of EPFO with an aim to redress grievances for the services provided by EPFO. Grievances are directed towards the concerned office to which the grievances pertain.
EPFiGMS Features;
Grievance can be lodged by PF member, EPS Pensioner, Employer and Others
OTP verification
Online lodging of grievance/complaint based on UAN
UAN integrated with master database of EPFO resulting in identification of EPF office for redress of grievance
Grievance can be lodged for multiple PF numbers available in UAN
PPO number validation/integration (for EPS pensioners) with centralised database of EPFO
Facility to send reminder for pending grievance
View current status of grievance
Facility to provide feedback on redress of grievance
Comprehensive categorisation for identifying the grievance prone areas
Facility to upload more than one grievance document
EPFiGMS is also available in UMANG. You can lodge grievances using UMANG mobile application and select EPFO Services.
Further, once a grievance is registered, the system generates a unique registration number and auto generates acknowledgement through SMS & email.
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If you’re not satisfied with the resolution provided by EPFO, you may write to the Ministry of Labour & Employment and file a complaint.
The EPFO is a statutory body under the Ministry of Labour and Employment, Government of India that administers various social security schemes for workers. These schemes provide for provident fund, pension, insurance coverage, and other benefits to the employees in case of their retirement, death, or disability.
