EPF REGISTRATION

1. In India, EPF or Employees Provident Fund is a scheme governed by the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is regulated by EPFO ​​(Employees Provident Fund Organization). All establishments in India employing 20 or more employees can apply for PF registration in India. In some cases, depending on the conditions and exemptions, establishments employing less than 20 people are still eligible for EPF registration in India. The employee receives a amount which includes the contribution of the employer and the employee with interest on resignation or retirement. The objectives of EPFO ​​in India are:1: To ensure that every employee has only one EPF account;2: To ensure that the online services are reliable and trustworthy and to make improvements to its facilities;3: Encourage and promote voluntary compliance;4: Ensure that organizations regularly comply with all rules and regulations laid down by EPFO;5: Compliance should be ensured easily;6: Claim processing should be reduced from 30 days to just 3 days;7: All EPF member accounts should be easily accessible online. Effectiveness of EPF Registration in India, an employer is required to obtain EPF registration within one month of assuming office, failing which penalties are applicable. A registered undertaking continues to be subject to the Act even if the number of employees falls below the required minimum. The Central Government of India may apply the provisions to any undertaking employing less than 20 employees, after giving at least 2 months' notice for compulsory registration. Where the employer and a majority of the employees have agreed that the provisions of this Act shall apply to the undertaking, they may themselves approach the Central Commissioner of PF. The Commissioner may apply the provisions of the Act to such institution after publication of the notice in the Official Gazette from the date of the agreement or any specific date specified in the agreement. All employees will be eligible for a provincial fund from the commencement of their employment and the responsibility of deducting and paying the insurance fund lies with the employer. The 12% PF contribution is to be shared equally between the employer and the employee. The employer's contribution is 12% of the basic salary. If the establishment employs less than 20 employees, the PF deduction rate will be 10%.

What are the benefits of EPF in India? The advantages of EPF registration in India are as follows:

Long-term goals: Long-term goals like marriage or higher education require immediate availability of funds. In such cases, the accumulated amount of Provident Fund often comes in handy. 

EDLI Scheme: Employees Deposit Linked Insurance Scheme or EDLI Scheme is available to all PF account holders. Under this scheme, life insurance premium is deducted at the rate of 0.5% of the salary. 

Risk Coverage: One of the major advantages of EPF registration is that it covers the risks that employees and their dependents may face due to illness, death or retirement. 

Pension Coverage: In addition to the employee's contribution to EPF, the employer contributes an equal amount, which includes 8.33% to EPF. 

Emergency Need: Some unexpected events like marriage or other family gatherings and any accident/illness, require quick financial assistance, the amount of Provident Fund can be extremely useful. 

Eligibility Criteria for EPF Registration in India

EPF in India is the primary vehicle for employees to save for retirement and is managed by EPFO. The Employees Provident Fund Act, 1952 and its various provisions determine who can join. 

For employees: Employees earning less than Rs 15,000/month are required to join EPF and pay regular contributions; Employees whose salary is more than Rs 15,000/month at the time of joining are not required to pay contributions to PF. However, they can still choose to join the Employees Provident Fund and pay contributions with the agreement of the employer and the Deputy Commissioner of PF .

For employers: Enrolment in EPF is mandatory for all companies or organizations employing 20 or more persons; If a company or organization employs not more than 20 people, it can still seek EPF registration if specified by the central government notification. 

Here is the list of different types of EPF forms:

Form 10D:This form is mainly used for availing monthly pension.

Form 10C:This form is used to claim benefits under the EPF scheme

Form 13:Form 13 is used to transfer your PF account from your last employment to your current employment.

Form 20:Family members can use Form 20 to withdraw the PF amount in case of death of the account holder.

Form 31:It is also known as PF Advance Form

Form 51F:This form is used by a beneficiary to apply for EDLI benefits.

Some important details for EPF registration:

1: Number of employees;

2: Full name and address of your company;

3: Head office and contact details branches;

4: Type of business;

5: Nature of business;

6: Date of registration of the company;

7: Contact details of all directors or partners;

8: Basic contact details of employees;

9: Salary details of the employee;

10: Bank details of the company;

11: PAN Card.

FAQ EPF / PF / EPFO 

What is EPF registration?

EPF registration refers to the process of enrolling employers and their employees in the Employees Provident Fund Scheme, which is a mandatory savings scheme for employees in India. 

Who is required to enrol in EPF? 

Any organisation with 20 or more employees is required to register for EPF.

How can I register for EPF? 

To register for EPF, you need to visit the official website of EPFO, fill the necessary forms and submit the required documents. 

What documents are required for EPF registration?

The documents required for EPF registration include company registration certificate, PAN card, address proof, cancelled bank cheque and employee details. 

Can I register for EPF online? Yes, you can register for EPF online through the EPFO ​​Unified Portal. 

When should I register for EPF? EPF registration must be completed within 30 days of reaching the limit of 20 employees. 

What are the benefits of EPF enrollment for employers? By subscribing to the EPF, employers contribute to the pension savings of their employees and ensure compliance with labor laws.

What are the benefits of EPF membership for employees? 

Enrollment in EPF provides employees with a safe and secure savings fund for their retirement. It also offers financial support in emergencies, housing loans, medical assistance, etc.

How does EPF registration affect salary calculation?

Employers are required to deduct a fixed percentage from the salaries of employees for EPF contributions. This deduction is tax deductible. for both employers and employees.

Can I opt out of EPF registration?

No, registration with EPF is mandatory for eligible organizations. Employees are required to contribute to EPF unless their salary exceeds a certain limit. 

What is the contribution percentage for EPF registration?

Currently, the contribution percentage for EPF registration is 12% of an employee's basic salary plus cost of living allowance. The employer also contributes the same amount.

Can I register for EPF if I am Does the organization have less than 20 employees?

Yes, organizations with less than 20 employees can voluntarily register for EPF.

Can an employer change the EPF registration details?

Yes, an employer can change the EPF registration details by submitting the necessary forms and documents to EPFO.

What happens if an employer is not registered with EPF?

Failure to register with EPF can result in fines, penalties and legal consequences under the EPF Act.

Can an employee withdraw his/her EPF balance after leaving the organization?

Yes, employees can withdraw their EPF balance after leaving the organization. However, there are specific rules and criteria that govern such withdrawals.

Can an organization have multiple EPF registrations?

No, an organization can have only one EPF registration, irrespective of the number of branches or locations. All employees must be covered under the same registration. Every organization with 20 or more employees is required to register for EPF.

What are the rules for withdrawal of PF after registration with EPFO?

EPFO lays down procedures for withdrawal of PF after resignation. As per the rules, employees who have been unemployed for 2 months or more are allowed to withdraw the entire balance of their provident fund account. This means that a person who resigns from a job can withdraw his entire balance of the account 2 months after the last day of employment. Before an employee can withdraw the entire amount from his provident fund (PF) account, a number of limits and requirements have to be fulfilled. The employee must have worked in the current company or organization for at least 5 years, which is one of the essential conditions. If the employee has not worked for 5 years, he is only allowed to withdraw the money he has deposited in the Provident Fund account, without interest.

Who is excluded from EPF registration in India? 

In India, any company with less than 20 employees is exempted from the registration requirement under the Employees Provident Fund Act. These companies can still register for the EPF scheme if they wish. Thereafter, the process will be known as Voluntary Enrolment of Provident Fund.

Company Mandatory Here are some mandatory compliances after EPF registration that need to be completed:

1: Monthly returns are to be submitted digitally by uploading the ECR sheet using the institution login;

2: Online returns are to be submitted before the 15th of the following month;

3: Once the company or institution is registered with EPFO, it has to follow certain statutory requirements on a monthly/annual basis;

4: A file has to be created from an XML sheet before it can be uploaded for filing of return;

5: Every employee registered with the company during the month for which the return is filed is listed with name and UAN in the ECR sheet, which is available for download through EPFO ​​in XML format;

6: By adding online payment gateway, fill the return completely. What is the deadline for filing PF? Before paying the salaries of the employees, the employer has to deduct the employee's contribution. EPFO ​​will then receive the employer's share and half from the employee within 15 days of the end of each month. EPF registration is unique in terms of returning a debt instrument. A state guarantees the currency and the interest is exempt from taxes. Since then, the PF has had an exempt status. Contributions are deductible from income tax. Debt securities with such a high yield and such strong security and reliability are rare. So, to reduce the temptation to withdraw money, it is better to change your PF account when you change jobs.

Penalty for late payment by employer:

Penalty period for late payment per year : Up to 2 months 5%2 Up to 4 months 10%4Up to 6 months 15%More than 6 months 25%