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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Arjun Engineering Pvt Ltd employs 150 workers in a factory in Coimbatore. For its compliance calendar, which approach is correct regarding employee-related provident fund obligations?

Provident fund is a monthly compliance. The employer must deposit its own share and the employee share deducted from wages, and file the monthly return, within the prescribed due date each month. It is not annual, not employee-only, and not payable only at retirement.

  1. AContributions are deposited once a year along with the annual return
  2. BContributions must be deposited and the monthly return filed within the prescribed due date each monthCorrect
  3. CContributions are required only from the employees, not the employer
  4. DContributions need be paid only when an employee retires

Explanation

Provident fund contributions are a monthly recurring obligation: the employer deposits both its share and the employee share deducted from wages within the monthly due date and files the corresponding return. Annual deposit or retirement-only payment is wrong, and the employer also contributes.

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