Section 133 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 133 lists seventeen acts or omissions, from failing to pay contributions to making a dishonest false return, and sets the punishment for each. The penalties range from a fine of up to fifty thousand rupees to imprisonment of up to three years, with a minimum term of one year where an employee's deducted contribution is not paid.
Failure to pay contribution (clause (a)) attracts imprisonment up to three years: not less than one year and a fine of one lakh rupees if the employee's contribution was deducted from wages but not paid, and two months to six months and a fine of fifty thousand rupees in any other case. Gratuity non-payment (g) carries up to one year or fine up to fifty thousand rupees, or both. Clauses (d), (f), (i), (k), (l) and (o) carry up to six months or a fine up to fifty thousand rupees, or both. Clauses (b), (c), (e), (h), (j), (m), (n), (p) and (q) carry a fine up to fifty thousand rupees.
Why it matters
Most of these offences are about the same basics: pay what is due, keep the registers, file what is required, and do not retaliate against women employees. The heaviest punishment is reserved for keeping money deducted from employees' wages. Our labour law compliance team can review your payroll deductions, deposits and filings against this list. Repeat offences and company officers' liability follow in sections 134 and 135, and prosecution safeguards in sections 136 to 138.
The offences (s.133(a) to (q))
| Clause | Offence |
|---|---|
| (a) | Employer fails to pay any contribution payable under the Code, rules, regulations or schemes |
| (b) | Deducts or attempts to deduct the whole or part of the employer's contribution from an employee's wages |
| (c) | Reduces wages or any privilege or benefit admissible to an employee, in contravention of the Code |
| (d) | In contravention of Chapter IV or VI, dismisses, discharges, reduces in rank or otherwise penalises a woman employee |
| (e) | Fails or refuses to submit any return, report, statement or information required |
| (f) | Obstructs an Inspector-cum-Facilitator or officer or staff of the Central Board, Corporation, other organisation or a competent authority |
| (g) | Fails to pay gratuity due |
| (h) | Fails to pay compensation due |
| (i) | Fails to provide maternity benefit due |
| (j) | Fails to send a statement to a competent authority required under Chapter VII |
| (k) | Fails to produce on demand any register or document kept under the Code |
| (l) | Fails to pay the building workers' cess |
| (m) | Any other contravention for which no special penalty is provided in the Chapter |
| (n) | Obstructs an executive officer under Chapter XIII |
| (o) | Dishonestly makes a false return, report, statement or information |
| (p) | Fails to comply with a condition of an exemption under section 143 |
| (q) | Fails to pay administrative or inspection charges under schemes framed under Chapter III |
The punishments
| Offence clause | Punishment |
|---|---|
| (a), where the employee's contribution was deducted from wages and not paid | Imprisonment up to three years, not less than one year, and fine of one lakh rupees |
| (a), in any other case | Imprisonment not less than two months, extendable to six months, and fine of fifty thousand rupees |
| (g) gratuity | Imprisonment up to one year, or fine up to fifty thousand rupees, or both |
| (d), (f), (i), (k), (l), (o) | Imprisonment up to six months, or fine up to fifty thousand rupees, or both |
| (b), (c), (e), (h), (j), (m), (n), (p), (q) | Fine up to fifty thousand rupees |
The proviso to clause (i) of the penalty part lets the court, for adequate and special reasons recorded in the judgment, impose a lesser term of imprisonment than the minimum in clause (a). Second and later convictions are dealt with in section 134.
Points to note
- Employee contribution deducted but not deposited is the most serious case because of the minimum one-year term and the one lakh rupee fine, both stated in the text. The Code does not say that the fine replaces imprisonment; it says the offender "shall also be liable to fine".
- Clause (m) is a catch-all for contraventions without a special penalty, but it carries only a fine up to fifty thousand rupees.
- Non-payment of gratuity, compensation and maternity benefit fall in different bands: gratuity (g) is imprisonment or fine or both, compensation (h) is fine only, and maternity benefit (i) is imprisonment or fine or both.
- Offences by companies reach directors and officers under section 135.
- Many offences are compoundable if first-time and within the limits in section 138.
- The Central Rules add a consequence for employees: under rule 52(15), an insured person convicted under clause (o) loses cash benefits under Chapter IV for three months on a first conviction and six months for each later one, from receipt of the judgment by the Corporation. Where the State Government is the appropriate Government, the State's own rules apply.
The existing posts on prosecution under the EPF Act and ESI penalties describe the repealed regimes, which are useful background only.
A worked example
An employer deducts the employees' PF share from April wages but does not deposit it. On prosecution under clause (a), the employee-contribution limb applies: imprisonment of at least one year and up to three years, and a fine of one lakh rupees, unless the court records adequate and special reasons to impose a lesser term. A second employer simply forgets to file a required return; clause (e) applies and the punishment is a fine up to fifty thousand rupees. (Illustrative.)
Need help avoiding these offences?
Most are avoided by depositing deductions on time, keeping registers and filing every return. Our labour law compliance team can help you set up a compliance calendar and review your past record before an inspection or notice.
Key takeaways
- Section 133 lists seventeen offences (a) to (q) with four punishment tiers.
- Deducted but unpaid employee contribution: 1 to 3 years and ₹1 lakh fine.
- Other contribution default: 2 to 6 months and ₹50,000 fine.
- Gratuity default: up to 1 year or ₹50,000 or both; compensation default: fine up to ₹50,000.
- A dishonest false return (o) carries up to six months or fine, and can cost an insured person cash benefits.
Read next
- Sections 134 and 135: Enhanced punishment and offences by companies
- Sections 136 to 138: Cognizance, prior notice and compounding
- Sections 123 and 124: Maintenance of records and employer's duties
- Prosecution under the EPF Act: Section 14
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.