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EPF Registration Services
The Employees’ Provident Fund (EPF), governed by the Provident Funds and Miscellaneous Provisions Act, 1952, is a mandatory savings scheme for Indian employees, administered by the Employees Provident Fund Organization (EPFO). Companies with 20 or more employees are required to register for EPF, and even smaller establishments can opt for voluntary registration. Both employers and employees contribute 12% of the basic salary to the EPF, with a reduced rate of 10% for smaller entities. The registration process should begin within one month of reaching the employee threshold to avoid penalties. Essential documents for registration include company PAN, GST certificate, bank account details, and employee information. Employees earning less than Rs 15,000 monthly must join the EPF, while those earning more can opt-in with employer approval.
From the employer’s contribution, 8.33% is allocated to the Employees’ Pension Scheme (EPS), with the remainder going to the EPF account. Upon retirement or resignation, employees receive the total amount, including interest. The PF contribution also includes administrative charges for EPF and EDLI (Employees’ Deposit Linked Insurance). For establishments exempted from these schemes, inspection charges replace the administrative charges. Compliance with EPF regulations ensures employees benefit from retirement savings, insurance, and pension schemes, contributing to their financial security.
EPF Registration Process: Timely Application Guidelines
The EPF registration process should commence within one month of reaching the requisite employee count. Failure to adhere to this timeline can lead to compliance issues and hefty penalties imposed by the Government. Delays in PF registration may trigger audits, necessitating comprehensive employee data.
Employers and employees can mutually opt for EPF applicability, facilitating registration with the Central PF Commissioner through formal agreement. Even organizations with fewer than 20 employees may voluntarily seek PF registration, ensuring eligibility for PF benefits from employment commencement. Both employer and employee contribute 12% of the basic salary towards EPF, with a reduced deduction rate of 10% for entities employing less than 20 individuals.
Required Documents for EPF Registration
- Company Name
- Establishment Commencement Date
- Scanned Copy of Company’s PAN
- Licenses in Company’s Name (Scanned)
- GST Registration Certificate
- Scanned Copy of Company Bank Account Cheque
- Company Address with Address Proof
- List of Directors/Partners
- Residence Proof of Proprietor/Director/Partner
- Contact Information (Phone Number, Email) of Proprietor/Director/Partner
- Monthly Employee Strength Since Establishment
- Employee Details: Name, Father’s Name, Joining Date, DOB, Mobile Number, Address, Nominee Name, Grade, Salary, Designation, ID Proof
- Company Bank Account Number with IFSC Code
- Digital Signature of Proprietor/Director/Partner
- Copies of First Sale Invoice/Job Work Invoice and First Purchase Invoice.
Who is Eligible for PF?
Eligibility for PF membership is mandatory for employees earning less than Rs 15,000 monthly. Employees with a basic pay exceeding Rs 15,000 monthly upon joining are not required to contribute to PF. However, they can still join and contribute with employer and PF Commissioner approval.
Amount of PF Contribution
The employer’s PF contribution is 12% of the basic salary, dearness allowance, and retaining allowance combined. Employees also contribute an equal amount. However, in establishments with fewer than 20 employees or meeting specific criteria, both contributions are limited to 10%. For private sector employees, the contribution is typically based on the basic salary.
Employees Pension Scheme
From the employer’s contribution, 8.33% is allocated to the Employees’ Pension Scheme (EPS), capped at Rs 15,000. For employees with a basic pay of Rs 15,000 or more, the EPS contribution is Rs. 1250. If the basic pay is below Rs 15000, 8.33% of that amount is directed to EPS, with the remaining retained in the EPF scheme. Upon retirement, the employee receives their entire share along with the employer’s balance reserved in the EPF account.
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The breakdown of the PF contribution is as follows:
- 3.67% for Employees’ Provident Fund
- 1.1% for EPF Administration Charges
- 0.5% for Employees’ Deposit Linked Insurance
- 0.01% for EDLI Administration Charges
- 8.33% for Employees’ Pension Scheme
Here's a breakdown of the EPF charges:
Employee Share, Pension Contribution, and EDLI Contribution:
- Rounded to the nearest rupee.
Employer Share:
- The difference between the Employee Share (as per statute) and Pension Contribution.
EPF Administrative Charges:
- Rounded to the nearest rupee, with a minimum of Rs. 500/- payable.
- If there are no members in the month, the minimum administrative charge will be Rs. 75/-.
EDLI Administrative Charges:
- Rounded to the nearest rupee, with a minimum of Rs. 200/- payable.
- If there are no members in the month, the minimum administrative charge will be Rs. 25/-.
Inspection Charges (if exempted from the PF Scheme):
- 0.18% with a minimum of Rs. 5/- payable in place of Admin charges.
Inspection Charges (if exempted under the EDLI Scheme):
- 0.005% with a minimum of Re. 1/- payable in place of Admin charges.
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