Provident Fund (PF) payments are due on the 15th of each month. The employer must deposit a total of 12% or 10% of the employee wages towards PF on or before this date every month. For most entities, the PF rate of 12% would be applicable. The 10% PF rate is applicable for:
⢠Any establishment in which less than 20 employees are employed.
⢠Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
⢠Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
⢠Any establishment in following industries:-
o Jute
o Beedi
o Brick
o Coir
o Guar gum Factories.
The contributions are payable on maximum wage ceiling of Rs 15000/- by employee and employer. However, an employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.
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