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4 Things You Can Do If Employer Stops EPF Contribution

Employees’ Provident Fund (EPF) is a social security scheme to empower individuals financially post-retirement. Here’s what you can do if the employer stops EPF contributions.

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Outlook Money
January 18, 2024
Finance Ministry Bars EPFO

Finance Ministry Bars EPFO

Employees’ Provident Fund (EPF) is a social security scheme aimed at providing financial support post-retirement. Organizations that have 20 or more employees must create the EPF facility, where both the employer and the employee contribute 12 per cent of the employee’s salary (basic plus dearness allowance). From the employer’s contribution, 3.67 per cent goes to EPF while the remaining 8.33 per cent goes towards the employee pension scheme (EPS).

As per the Employees’ Provident Fund Organisation (EPFO) rules, the employer must deposit 12 per cent of the employee’s salary, along with the employer’s contribution towards the EPF account. If the employer fails to do so, you can take the following steps to address the issue.

Here is what one can do if Employer Stops EPF Contribution: 

Check EPF Statement: To know whether the contributions are regularly deposited into the employees’ PF account, they need to periodically check their EPF statements, which can be easily accessed through the EPFO portal or the Umang app. To know how to check the EPF account statement, click here. Although SMS alerts are sent to EPF members confirming the monthly deposits, they should still verify it through these platforms.

Also Read: What Do The Revised FAQs From EPFO Say About Higher Pension?

Clarify With The Employer: If the amount is not deposited regularly, you can ask the employer why. If the issue still remains unresolved, lodge a complaint with the EPFO.  

Lodging A Complaint: Employees can lodge a complaint with the EPFO on its grievance portal ‘EPFiGMS’, where they can also track the status of their request. 

To know how to lodge a complaint on the grievance portal, click here. 

When lodging a complaint, the complainant must provide proof of their grievances through salary slips, EPF statements, etc. After the complaint is lodged, the employee will receive a registration number. If the issue remains unresolved for over 30 days, it will be escalated to the subsequent higher authority. Meanwhile, the complainant can track all the developments regarding their complaint.  

Legal Action: If an employer is found guilty, EPFO can take legal action under sections 406 and 409 of the Indian Penal Code (IPC). To recover the amount from the defaulting employer, EPFO has laid down measures such as attachment of bank account and property, action under section 110 of CPC for the realization of dues, and prosecution under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPFO can also impose interest penalties on the employer for not depositing the amount.

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