Recovery of damages for default in insurance contributions allows penalty-based recovery from employers for unpaid fund charges. Damages may be recovered from an employer who defaults in payment of contribution to the Insurance Fund or charges under the Code, the rules, or the Scheme. The Commissioner, or an authorised officer, may levy such damages by way of penalty at the rate specified in the Employees' Provident Funds Scheme, 2026. The damages are calculated to the nearest rupee, with fifty paise or more rounded up and a smaller fraction ignored.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Recovery of damages for default in insurance contributions allows penalty-based recovery from employers for unpaid fund charges.
Damages may be recovered from an employer who defaults in payment of contribution to the Insurance Fund or charges under the Code, the rules, or the Scheme. The Commissioner, or an authorised officer, may levy such damages by way of penalty at the rate specified in the Employees' Provident Funds Scheme, 2026. The damages are calculated to the nearest rupee, with fifty paise or more rounded up and a smaller fraction ignored.
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