Deadlines · Social Security Code
Provident fund, pension and insurance contributions
- Every month, within 15 days after it ends
- Employer
- Set by a Scheme made under the Code; the Central Rules add nothing on this
What to do
Deduct the employee’s contribution from the wages before paying them, add the employer’s contribution and the administrative charge, and pay them to the Fund G.S.R. 525(E), paragraph 28. Pay the insurance contribution and its administrative charges too G.S.R. 526(E), paragraph 6.
Who it applies to
Every establishment in which twenty or more employees are employed First Schedule, or to which the provident fund Chapter has been applied by notification s. 1(5).
In the checklist: Employees’ Provident Fund.
When
Within fifteen days of the close of every month G.S.R. 525(E), paragraph 28.
How
The employer and the employee each pay twelve per cent of wages, unless the notification leaves the establishment out S.O. 3582(E).
Where wages exceed the wage ceiling, both contributions are limited to what is payable on the ceiling G.S.R. 525(E), paragraph 18. The ceiling is ₹25,000 a month S.O. 5109(E).
Out of the employer’s share, eight and one-third per cent of wages goes to the Pension Fund S.O. 3580(E).
The employer pays a further one-half per cent of wages to the Insurance Fund S.O. 3581(E).
The employer’s share cannot be taken from the employee’s wages G.S.R. 525(E), paragraph 21.
A late payment carries simple interest at twelve per cent a year S.O. 2698(E).
Damages may also be levied on arrears G.S.R. 525(E), paragraph 23.