interest rates for esi and pf

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Retirement fund body Employees’ Provident Fund Organisation (EPFO) has reduced interest rate on deposits to 8.55 percent for the financial year 2017-18, from earlier rates of 8.65% for 2016-17 and 8.8% in 2015-16. 

Due Date to Deposit EPF 2017

i. Due Date to Deposit EPF (Employee Provident Fund) for the Month is 15th of next month

Penalty Provision in respect of delay in payment of P.F. dues

· For 0-2 months delay- @ 5% p.a.

· For2-4 month delay- @ 10% p.a.

· For 4-6 month- @ 15% p.a.

· For delay above 6 month- @ 25 % p.a.(Subject to a maximum of 100 %)

ii. Deposit dues in time- avoid penal damages

Due Date to Deposit ESI 2017 (15th of next month)

Due Date to Deposit ESI (Employee Provident Fund) is 15th of next month

Provision for interest on late payment of ESI

Section 39 (5) (a): If any contribution payable under this act is not by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent a annum or at such higher rate as may be specified in the regulations till the date of its actual payment:

· 1-10-2005 onwards: 12 % p.a.

The following rates by way of penalty, not exceeding the amount of arrears

Period of delay amount                                          Maximum rate of damages in

                                                                               % per Annum of the

· For 0-2 month delay –                                          @ 5% p.a.

· For2-4 month delay –                                           @ 10% p.a.

· For 4-6 month –                                                    @ 15% p.a.

· For delay above 6 month –                                   @ 25 % p.a.(Subject to a maximum of 100 %)

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