Registration
EPF REGISTRATION
PROVIDENT FUND (PF)
WHAT IS PF?
Provident Fund (PF) is
a social security scheme mandated by the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952 in India. It is a retirement benefit scheme
that provides financial security and stability to employees. Both the employee
and employer contribute a portion of the employee's salary to this fund on a
monthly basis. Upon retirement or specific circumstances (like unemployment or
illness), the employee can withdraw the accumulated amount.
CRITERIA
- PF is mandatory for
organizations with 20 or more employees.
- Any employee earning a basic
salary of up to ₹15,000 per month is eligible for mandatory PF
contributions.
- Employees earning above this
limit can opt to contribute voluntarily.
- The employer and employee each
contribute 12% of the employee’s basic salary and dearness allowance. The
employer’s share is split between the EPF (Employee Provident Fund) and
EPS (Employee Pension Scheme).
PROCESS OF REGISTRATION
· Employer
Registration: Employers must register their organizations through the EPFO
(Employees' Provident Fund Organization) online portal.
· Employee
Enrollment: Once registered, employers must enroll all eligible employees for
PF by submitting necessary documents such as identity proofs and salary
details.
· Monthly
Contributions: Both employer and employee contribute monthly to the EPF
account. This can be done online through the EPFO portal.
· Withdrawal
Process: Employees can apply for withdrawal online through the UAN (Universal
Account Number) linked to their EPF account.
BENEFITS
- Retirement Savings: The fund
provides financial security after retirement.
- Tax Benefits: Contributions
made to EPF are eligible for tax deductions under Section 80C of the
Income Tax Act.
- Insurance Benefit: Along with
EPF, employees also benefit from the Employee Deposit Linked Insurance
(EDLI) scheme.
- Partial Withdrawals: Employees
can withdraw funds partially for purposes like medical emergencies,
marriage, or home loan repayment.
📄 Document
Title: EPF REGISTRATION DOCUMENT LIST
📜 Document Instructions:
Format: 📄 PDF
📄 Document
Title: COMPANY PROFILEOF PF REGISTRATION
📜 Document Instructions:
Format: 📄 PDF
Service Related FAQ
WHAT IS FULL FORM EPF REGISTRATION?
Employees' Provident Fund Organisation.
WHAT IS EPF?
EPF (Employees' Provident Fund) is a government-managed retirement savings scheme for employees in India. Both the employee and employer contribute a portion of the employee’s salary to the fund, which accumulates with interest over time. The fund provides financial security after retirement or in case of other contingencies like illness or disability.
WHO NEEDS TO REGISTER FOR EPF?
EPF registration is mandatory for establishments with: • 20 or more employees (as per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952). • Any organization that hires employees and provides salaries or wages. Even if your company has fewer than 20 employees but is willing to enroll, you can voluntarily register for EPF.
WHAT IS THE CONTRIBUTION RATE FOR EPF?
• As per the EPF Act: • Employee Contribution: 12% of basic salary + dearness allowance (DA). • Employer Contribution: 12% of basic salary + DA (split between various funds): • EPF: 3.67% of basic salary. • Employee Pension Scheme (EPS): 8.33% of basic salary. • EDLI (Employee Deposit Linked Insurance): 0.50% of basic salary (up to a certain limit).
WHEN IS EPF CONTRIBUTION DEDUCTED?
The EPF contribution is deducted every month from the employee’s salary. The employer also contributes an equal amount, and the total is transferred to the employee's EPF account.
CAN AN EMPLOYEE OPT OUT OF EPF?
Employees who are covered under the EPF Act cannot opt out of the scheme if they are working in a company with 20 or more employees. However, employees earning more than ₹15,000 per month have the option to voluntarily choose not to contribute to the EPF.
WHAT IS THE EPF UAN (UNIVERSAL ACCOUNT NUMBER)?
The UAN (Universal Account Number) is a unique 12-digit number assigned to each employee who is a member of the EPF. The UAN helps to track the EPF balance across different employers without the need for multiple account numbers.
WHAT IS THE PENALTY FOR NOT REGISTERING FOR EPF?
If an employer fails to register for EPF when required, they may face: • Penalties for non-compliance. • A fine of up to ₹5,000 and interest on the delayed payments. • Legal action, which may lead to prosecution.
CAN I TRANSFER MY EPF BALANCE WHEN I CHANGE JOBS?
Yes, employees can transfer their EPF balance when they change jobs by linking their previous EPF account to the new UAN (Universal Account Number). The transfer process can be done online through the EPFO portal or by submitting a transfer request form to the EPFO.
IS EPF TAXABLE?
EPF contributions are not taxed at the time of deduction. However, the interest earned on EPF contributions is tax-free. When withdrawn, EPF balance is subject to tax only if it is withdrawn before 5 years of continuous service.
