Introduction
Employee Provident Fund is a retirement benefit programme offered to all salaried employees in India. A company or organisation must register for EPF if it employs more than 20 individuals, including both temporary and permanent employees. Companies with fewer than 20 employees are permitted to self-register. Companies must register themselves within a month of reaching a membership threshold of 20 members. Additionally, there are fees associated with late registration for the Employee Provident Fund.
A cooperative society must register when the number of its employees reaches 50 or more While registered organisations are nevertheless subject to the Act's laws and rules even if their employee count is below the minimal requirement.
Employers have the choice to register either offline or online. However, the online registration process is preferred. You can get the registration form from the Employees' Provident Fund Organization's official website, www.epfindia.gov.in.
The Employees' Provident Fund came into existence with the promulgation of Employees’ Provident Fund Ordinance on the 15th of November, 1951.
This Scheme is regulated under the Employees’ Provident Fund Organization (EPFO) and Miscellaneous Provision Act, 1952.
APPLICABILITY
Registration for PF is compulsory for the companies / Organizations who employ 20 or more individuals. Also, a small organization that does not have the maximum Strength can register them voluntarily. The organization which grows to strength of 20 members is expected to register them within one month of attaining the minimum strength, subject to certain conditions and exemptions.
All employees become eligible for a PF right from the commencement of employment and the onus of deduction & payment of PF is with the employer. The 12% rate of PF contribution should be equally divided between the employee and employer. If the establishment houses less than 20 employees, the rate for PF deduction is 10%.
Eligibility Criteria
Eligibility:
EPF registration is compulsory for all establishments-
- A factory engaged in any industry with 20 or more persons, and
- For any other establishment employing 20 or more persons or class of such establishments as may be defined by the Central Government by notification in that name.
Central Government can notify any establishment employing less than 20 employees after giving no less than two months 'notice of compulsory registration Where the employer and majority of employees have agreed that the provisions of this act will submit to the establishment, they can apply to the Central PF Commissioner themselves.
Rates of Contribution:
a. Employee contribute-12%
b. The employer contributes- 12%, the employer part consists of 12% of basic wages + dearness allowance + retaining allowance.
Number of employees less than 20 in an organization then the PF rate is 10%
Procedure and Documentation
Step1. Register your organization on EPFO portal
Step 2. Register your DSCs
Step 3 Fill the employer’s Detail
Step 4. Verify your application then submit
Documents and information required for registration:
a. Name of the company.
b. Date of the setup of the organization.
c. Scanned copy of the company’s PAN (Proprietor’s, in case of proprietorship concern).
d. Scanned copy of the licenses available in the name of the company. (Like GST).
e. Scanned copy of the cheque of the company’s bank account.
f. Address of the company with address proof.
g. List of Directors / Partners.
h. Address proof of Proprietor / Director / Partner of the company.
i. Email address, Mobile Number of Proprietor / Director / Partner of the company.
j. Copy of First sale bill / Job work bill and First purchase bill.
k. The monthly strength of employees from the date of setup.
l. Current list of employees with their details:
- Name
- Father’s Name
- Date of joining
- Date of birth
- Mobile number
- Postal address
- Name of nominee
- Grade
- Salary
- Designation
- ID proof (Aadhaar and PAN)
- Bank A/c number with IFSC code
m. Digital Signature of the Proprietor / Director / Partner
Compliance Checklist under the EPF Act
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S.No.
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Provisions
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Compliance
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1
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Employer and Employee’s PF dues
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15th of the following month
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2
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Payment of Pension Fund
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15th of the following month
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3
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Payment of Insurance Fund
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15th of the following month
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4
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Detail of employees
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Detail of employees enrolled as members PF fund, within 1 month of coverage in the prescribed form
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5
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Nomination Form
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Immediately on Joining the fund in the prescribed form
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6
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Addition of members
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Detail of newly enrolled members within 15 Days of the following month in the prescribed form
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7
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Deletion of member
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Detail of members left service during the monthbefore21st of the following month in the prescribed form
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8
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Details of contribution
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Detail of employees and employer’s contribution by 25th of the following month in the prescribed form
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9
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Detail of wages and contribution
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For each member details shall be given By 30th April every year
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10
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Yearly Consolidated statement of contribution
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To be forwarded yearly along with Form 3A
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11
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Return of ownership of the establishment
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Within 15 days on coverage and whenever there is a change in ownership
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12
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Transfer of PF
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Form 13 needs to file
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