Penalties EPF Act Section 7Q — Interest on Delayed PF Contribution
EPF Act Section 7Q — Interest on Delayed PF Contribution
EPF & MP Act 1952 — 7Q
12% per annum simple interest on delayed PF contribution — separate from and in addition to s.14B damages.
The Penalty
12% per annum simple
- Cap
- None stated
- Calculation base
- Contribution amount not paid by the due date
- Period
- From day after due date until deposit.
When does this apply?
PF contribution (12% employer share + 12% employee share deducted from wages) not deposited by the 15th of the following month.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹986₹1,00,000 × 12% ÷ 365 × 30 days
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| PF ₹2,00,000 delayed by 3 months | ₹2,00,000 × 12% × 3/12 = ₹6,000 | ₹6,000 |
How it is levied
RPFC assesses; interest is auto-computed on the ECR portal. s.14B damages levied separately.
⚠ VERIFY
Confirm the 12% rate has not been notified downward; EPFO has kept it steady for many years.