In a circular by the EPFO, it has been notified that the PF due date grace period which was provided for the payment of PF amount has now been removed.
Earlier, the employers had to pay the PF contributions and the administrative charges by 15th of every month. A grace period of 5 days had been provided as well.
Now, according to the latest circular, this grace period, which was given on the due date for payment has been removed. This will be applicable from February 2016. This means that the contributions for the month of January i.e., PF contributions and administrative charges, has to be paid by 15th of February, 2016. From February onwards, no grace period will be provided for the payment of PF contributions.
Explaining the reason behind this move, the EPFO had said that the due date grace period has been removed due to the fact the computation of wages and PF contributions is being done electronically by the employer.
Filing of PF returns is also done electronically through the Electronic Challan-cum-Return (ECR) and the remittances are also being deposited through internet banking. This has reduced the time taken for the calculation of PF dues and its remittance to the banks.
Following this line of reasoning, the PF due date grace period concession of 5 days is now being withdrawn.