EPFO has issued the directions on 15th May 2020, considering the prolong lockdown to prevent COVID 19, that No Penal Interest, or so-called damages, under Section 14B of the EPF Act for any delay in the payment of contribution or administrative charges due for any period during the lockdown shall be levied. No proceedings to be initiated for any such delay. Issued directions are attached herewith for ready reference
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Penal Damages for Late Payment under Section 14B of EPF is as below
|
NO. OF MONTHS DELAYED |
PENALTY RATE APPLICABLE |
|
Delay for up to 2 months |
5% per annum |
|
Delay from 2 months to 4 months |
10% per annum |
|
Delay from 4 months to 6 months |
15% per annum |
|
Delay exceeding 6 months |
25% per annum (with a maximum of 100% of the amount) |
