EPFO notice to 144 companies for not depositing PF contributions

The Regional Office of the Employees’ Provident Fund Organisation (EPFO) here has issued notices to 144 companies for not depositing their employees' provident fund (PF) contributions. The EPFO has warned of legal action if the pending contributions are not deposited within the specified time.

The companies in question have reportedly failed to deposit the required PF contributions since April 1, said an EPFO official. Issuing notices to these defaulters is a legal requirement, and further actions, such as arrest warrants or bank account attachment, may follow if the companies do not clear the dues promptly. “The department has authority to issue arrest warrants under the PF Act if contributions remain unpaid,” the official added.

During the 2023–24 fiscal year, a recovery of Rs 6.16 crore was made from 70 companies in the Faridabad and Palwal regions following arrest warrants. As many as 120 bank accounts were frozen in the process.

In the past year, 56 companies have faced attachment of their bank accounts due to PF defaults. Under government regulations, companies are required to deposit 12% of an employee's basic salary, matched by an equal employer contribution, to the EPFO. The department can take recovery action under the PF and Income Tax Act, including issuance of warrant under Sections 8-B and 8-G of the PF Act.

EPFO Assistant Commissioner Krishan Kumar stated that regular notices are issued to defaulters. The department may escalate actions to include attachment of bank accounts, property, and arrest warrants if companies do not comply.