As the Employees’ Provident Fund Organisation (EPFO) has decided to extend the last date for employers to file their Electronic Challan-cum-Return (ECR), employers will now have enough time to reconcile records as per the latest revision in the provident fund wage ceiling and make correct calculations.
The deadline to file the ECR for September, which was earlier October 15, 2026, has now been extended to October 31, 2026.
ECR deadline change
Following the government’s decision to raise the statutory wage ceiling from Rs 15,000 to Rs 25,000, establishments covered by the EPFO have to revise their payrolls and data on contributions made to the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit-Linked Insurance (EDLI).
Since the changes were applicable from September 17, 2026, employers need to calculate the payroll separately for the period before that date and the period from that date onwards, based on the previous and revised ceilings. Careful application of the appropriate rules is necessary, as the whole month’s salary cannot be calculated based on a single wage ceiling.
ECR is an electronic monthly return filed by the employer to upload data, including each employee’s salary, provident fund contribution, and other related payments, to the EPFO portal. Once the ECR is approved, a challan is generated, which is then used to remit the dues to the respective PF accounts.
Since the data received through the ECR is used to process EPF, EPS, and EDLI benefits, it is important to furnish the correct details on time. Mistakes and delays in the process may affect employees’ PF, pension, withdrawals, etc.
Considering the situation, employers have been given more time to file accurate returns so that employees face no difficulties and receive the correct contributions in their respective accounts.
What happens in case of delays
The deadline extension provides relief to employers by giving them more time to complete the ECR filing process for September. However, if a delay occurs, it may incur penalties or additional interest, subject to the provisions of the EPF Act.
Interest: Interest at the rate of 12 per cent per annum is charged on the outstanding dues under Section 7Q. It is calculated from the day after the due date has passed and covers both the employer’s and the employees’ contributions.
Damages: Under Section 14B of the EPF Act, damages are levied at annual rates that depend on the length of the delay and cannot exceed 100 per cent of the arrears. The rates are:
Less than 2 months: 5 per cent per annum
2 months to less than 4 months: 10 per cent per annum
4 months to less than 6 months: 15 per cent per annum
6 months or more: 25 per cent per annum
