What is Penalty for late payment of PF/ESI contributions?
Nexa Consultancy | Startup & Finance Glossary
Late payment of PF and ESI contributions attracts damages and interest. For PF, damages can range from 5% to 25% per annum depending on the delay. For ESI, interest is charged at 12% per annum.
Startup Example: A startup delays its PF payment by 3 months. It will be liable to pay the contribution plus interest and damages, significantly increasing the cost.
We ensure timely payroll compliance to avoid these penalties.