EPF Damages & Interest Calculator

Basis: Section 7Q charges simple interest at 12% per annum for every day of delay in remitting EPF/EPS/EDLI dues, and that levy is unchanged. Section 14B (Para 32-A of the EPF Scheme) separately charges damages on the arrears, and the rate changed on 14 June 2024. Gazette notifications of the Ministry of Labour and Employment dated 14 June 2024 replaced the old slab keyed to the length of default — under 2 months: 5% p.a.; 2–4 months: 10% p.a.; 4–6 months: 15% p.a.; 6 months and above: 25% p.a., subject to a 25% ceiling — with a uniform 1% of the arrears per month or part thereof (12% p.a.), applying regardless of how long the default ran, across the EPF Scheme, the Employees' Pension Scheme, 1995 and the EDLI Scheme, 1976. This is not uniformly a reduction. Because the rate no longer depends on the period, a default of under two months now attracts 12% p.a. where it once attracted 5%; and because the 25% ceiling was removed, a default running beyond about 25 months now exceeds what the old ceiling permitted. “Per month or part thereof” also means a part month counts as a whole one, so the new figure is not pro-rated by days as the slab was. Both interest and damages are payable in addition to the arrears themselves. No 100% -of-arrears ceiling is applied here — the calculator used to impose one and it has no basis in Para 32-A. Sources record the notifications as dated 14 June 2024 and published 14–15 June 2024; this tool uses 14 June 2024 and says so rather than choosing silently. The ESI damages regime (Regulation 31-C) was not touched by these notifications — use the ESI calculator for that.