Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
15th of next month
Both PF and ESI for a month are due by the 15th of the next month.
Late = interest + disallowance
Beyond interest and damages, late employee PF can be disallowed under the income-tax law.
Why the date matters for tax too
Both PF and ESI for a month are deposited by the 15th of the following month, through the EPFO ECR and the ESIC challan respectively. Late deposit is costly twice over. Under the labour laws it attracts interest and damages, the damages rising with the length of delay. Under the income-tax law, the employees’ share of PF and ESI that an employer deducts is treated as the employer’s income if not paid by the due date under the relevant Act, and — following the Supreme Court’s Checkmate ruling — depositing it even a day late means it is disallowed permanently, not merely deferred. That makes the 15th a hard line: a missed PF/ESI deposit can convert what should be a routine cost into a non-deductible expense and an interest-and-damages bill. Setting the payment a few days ahead of the deadline, and reconciling deductions to deposits each month, is the simple discipline that protects both the workers’ credits and the employer’s deduction. The employer’s own share has slightly different treatment, but the safe practice is to deposit the whole amount on time.