Employee Provident Fund (EPF)
Provide benefits to your organisation & your prestigious employees.
Mandatory for the business who employee more than 19 employees.
SAVE UPTO 60% IN PROFESSIONAL FEES
Takes 3 Working Days
What is Employee Provident Fund (EPF) Registration?
- The term “EPFO” denoted as the Employees’ Provident Fund Organisation of India and it’s controlled by the Ministry of Labour & Employment.
- The EPF Registration governed by The Employees’ Provident Fund and Miscellaneous Provisions Act 1952.
- The EPF registration is also known by PF registration, EPF registration, Provident fund registration, Employee Provident fund registration etc.
- All the Factories & Establishment covered under the Schedule I of the EPF & MP Act 1952 shall require to have PF registration.
- The EPF registration provides all benefits related to retirement, medical, pension, Insurance, emergency fund etc. to all employees of the Factories or establishment.
- The EPFO (Employees Provident Fund Organisation) covered the Employee Provident fund (EPF) & Employee Pension Scheme (EPS).
- The EPF is the world’s largest social security of employee organisation concerning its size & volume of financial Transaction.
Applicability of EPF Registration
- All the Factories/Establishment employ 20 or more worker/ labour/ employees are mandatorily required to have EPF registration under EPF & MP Act 1952.
- Any other Establishment voluntarily registered himself in the EPF & MP Act 1952.
- If the Central Government (CG) wants any Factories/Establishment registered under EPF & MP Act 1952 which employ worker/labour/ employees less than 20 then CG gives 2 months advance notice for compulsorily EPF registration.
- If Employer & employee can register their organisation under the EPF & MP Act 1952 by mutual consent & send the agreement with the Central Government.
- Any Factories/Establishment registered under the Co-operative Societies Act 1912 and employing 50 or more worker/labour/employees & Working without aid of power then EPF registration is mandatory.
- The Exempted Factories/Establishment who employ contractual labour directly or Indirectly then they need to register under EPF.
Exempted Establishment From EPF Registration
- The Factories/Establishment which belongs or control or set up under the Central Government or Provincial Act or State government AND
- They entitled to get benefits of contributory provident fund or Pension or old-age pension under the scheme set up or framed under the governing act for such benefits.
- If CG opinion that the financial position is not adequate then exempt the newly setup Factories/Establishment for the period of 3 years from the date of setup &
- Merely change in the location of Factories/Establishment doesn’t amount to be newly set up.
EPF Registration Package
Salary / Wage Limit For EPF Registration
- The employees covered under EPF scheme having a salary up to Rs. 15000/- per month.
- IF employee wants to covered under EPF scheme with the mutual consent between employer & employee &
- Whose salary exceeds the Rs. 15000/- per month then-employer contribution is not mandatory but the employer needs to pay administrative charges (0.50%) on the salary above Rs. 15000/-.
- The Salary threshold limit of Rs. 15000/- does not apply to the International worker.
Employee & Employer EPF Contribution
10% Rate Applicable to
- Any Factories/Establishment employed less than 20 employees.
- The sick industrial company which is declared by the Board for Industrial & Financial Reconstruction.
- The Factories/Establishment whose accumulated loss equal to or exceeding the entire Net worth (Assets minus Liabilities) at the end of the financial year AND
- The Factories/Establishment involves in the following sectors are:-
- Guar gum &
- Coir Sector.
12% Rate Applicable to
- Any Factories/Establishment employed 20 or more employees.
- The Factories/Establishment is not declared as a sick industrial company by the Board for Industrial & Financial Reconstruction.
- The Factories/Establishment who have positive Net worth (Assets minus Liabilities) at the end of the financial year.
Important Points to Remember
- Both employer & employee need to contribute 10% / 12% to EPF respectively.
- The EPFO includes the Provident fund (EPF), Pension Scheme (EPS) & Employee Deposit Linked Insurance Scheme (EDLI).
- The Factories/Establishment is required to pay Administrative charges (0.50%) subject to minimum Rs. 500 payable.
- If there are no contributory members during the month then Administrative charges shall be Rs. 75/-.
- The Factories/Establishment is exempted under Provident fund (EPF) then Inspection charges payable @ 0.18% of Basic wages plus Dearness Allowance (DA) & other allowances AND The Admin charges minimum to Rs. 5/-.
- The Factories/Establishment is exempted under Employee Deposit Linked Insurance Scheme (EDLI) then Inspection charges payable @ 0.005% of Basic wages plus Dearness Allowance (DA) & other allowances AND The Admin charges minimum to Rs. 1/-.
Employee & Employer PF Contribution
Employee PF Contribution
- The Employee entire (10%/12%) share directly contributed to the Provident fund (EPF).
Employer PF Contribution
- The 33% of Employer contribution (10%/12%) diverted to the Pension Scheme (EPS),
- 50% to Employee Deposit Linked Insurance Scheme (EDLI) &
- The balance amount (1.17%/3.17%) is Invested in Provident fund (EPF).
Employer Contribution Under Employee Pension Scheme (EPS)
- The only employer need to contribute to the Pension Scheme (EPS) out of total contribution &
- No employee need to make any contribution to the Pension Scheme (EPS).
- There is no need to make any contribution to the pension scheme in the following cases are:-
- An employee attain or completed the age of 58 years of age in service or
- Employee withdrawing the Reduced pension from the scheme & re-joins as employee or
- The person joins the Factories/Establishment after crossing age of 50 years & he is not eligible for pension due to not completed 10 years of service (The maximum age for retirement is 58 years as per pension scheme).
- The 8.33% is contributed by the employer to the pension scheme (EPS) is diverted to the Provident fund (EPF) account in the above cases.
Employer Contribution Under Employee Deposit Linked Insurance Scheme (EDLI)
- The contribution made by the employer up to the threshold of Rs.15000/- even if Provident fund (EPF) payable on a higher amount.
- The Employer needs to make 0.50% of the contribution amount to the Employee Deposit Linked Insurance Scheme (EDLI).
- The Employee Deposit Linked Insurance Scheme (EDLI) payable even if the employee crossed the age of 58 years & he doing service in the Factories/Establishment.
- The contribution amount is rounded off to nearest integer.
Benefits of EPF Registration
- The EPF pay 8.75% interest on the amount deposited in the Provident Fund (EPF) account & it’s not taxable under the Income Tax Act.
- The employee contribution amount under Provident Fund (EPF) account is not taxable or exempt under section 80C of the Income Tax Act.
- The EPF pay interest on dormant or Inactive Provident Fund (EPF) account for the continuous period of 3 years.
- The withdrawal of Provident Fund (EPF) is not taxable after the continuous service of 5 years unless Factories/Establishment closed its business or the person voluntarily quits his or her job.
Lifetime Pension Benefits
- The employer required to contribute 10%/12% of employee Basic pay plus Allowance in the EPF account &
- 33% out of 10%/12% employer share deposited in the Employee Pension Scheme (EPS).
- The employee needs to work for a minimum of 10 years in the Factories/Establishment to take the benefits of Lifelong Pension Scheme (EPS).
- For the removal of doubt, the period of 10 years included works in different Factories/Establishment.
- If the employee attains or completed the age of 58 years then no contribution made by the employer in Employee Pension Scheme (EPS).
- The EPF provides Insurance benefits to all the employee registered with EPF.
- The Employer contributes 0.50% of employee basic pay plus allowance or Maximum Rs. 75 per month per employee to the Employees Deposit Linked Insurance (EDLI) Scheme.
- The Employee or registered Nominee get the benefits of Insurance in the event of Death or Injury or Disablement.
- The EPF provide the Minimum assistance of Rs. 2.5 Lakh and Maximum Rs. 6 lakh through the Employees Deposit Linked Insurance (EDLI) Scheme.
- The employee no need to make a contribution to Employees Deposit Linked Insurance (EDLI) Scheme, he automatically becomes the beneficiary of this Scheme.
Premature Withdrawal Option Benefits
- The Provident Fund (EPF) account is not like a bank account of an employee because of its social Security scheme &
- The withdrawal of amount after the period of 5 to 10 years of employment after meeting special needs or contingency expenses.
- The Provident Fund (EPF) withdrawal in case of Medical expenses or home loan repayment or unemployment or marriage or education etc.
- The following limit for the Employee for withdrawal of money from employee Provident Fund (EPF) account are:-
- Maximum 50% for Marriage or Education purpose of employee share;
- Maximum 36 times of Basic pay plus allowance of the employee for House construction;
- Maximum 90% for repayment of home loan;
- Maximum 75% for continuous unemployment for more than 1 month & balance 25% withdrawal after continuous unemployment for more than 2 months.
- The 8.75% Interest paid by the EPFO on the amount deposited in the Provident Fund (EPF) account of the employee.
- The 5% to 15% amount of Provident Fund (EPF) account invested in Exchange Traded Funds (ETFs).
- The reflect of Exchange Traded Funds (ETFs) is not shown or effect on the Employee Provident Fund (EPF) account.
- The EPFO invest around the amount of employee Provident Fund (EPF) account in the following Instruments are:-
- 45% to 50% in the Government Securities (Treasury Bills);
- 35% to 45% in the Debt Instruments (Debentures or Bonds);
- 5% in Money market Instruments (Govt. Bonds) &
- 5% in Infrastructure Trusts.
- The Employee has a right to invest their money in different proportions.
Wages Calculation For EPF Registration
For the calculation wages of the employee worked in the Establishment & the list of an allowance included & excluded from wages for EPFO contribution as follows:-
Items Included In Wages
- Matinee allowance (Paid to employees in Cinema Houses).
- Shift allowance (worked in ODD shifts).
- City/Location/Area allowance (Addition to Dearness Allowance due to high house rent.
- Compensation allowance.
- Cash handling allowance.
- Supervisory Allowance.
- Additional allowance for giving training to staff.
- Charge allowance.
- Steno/Typist allowance.
- Plant allowance.
- Honorarium for looking after the hospital/dispensary
- Computer allowance.
- Gestetner/Photocopier/Printer allowance.
- Personnel/Special allowance.
- Machine allowance.
- Canvassing allowance.
- First-aid allowance.
- Personal allowance (Dearness allowance for skill, efficiency or past good records).
- Ex-gratia payment if payment is made within an interval of two months.
Items Excluded In Wages
- Payment made on account of unutilized leave at the time of discharge.
- Commission on advertisement secured for Newspapers, if not paid to the regular employee.
- Fuel allowance/Petrol allowance.
- Entertainment allowance.
- Shoe allowance.
- Payment made on account of gratuity on discharge/retirement.
- Payment made on encashment of the leave.
Documents Required For EPF Registration
Documents For Individual/Sole Proprietorship
- Name of Sole Proprietorship Firm/Individual.
- Pan Card of Individual.
- Identity Proof (Driving License or Passport or Voter ID).
- Address Proof (Mobile Bill or Electricity bill or Bank Statement) & Not Older than 2 Months.
- Registered Office.
- Property Owned (Sale Deed or Electricity Bill) OR Property Rented ( Rent Agreement).
- Area Of Business.
- Bank Accounts Details.
- Group photo of all Employees.
- Wage Sheet of all Employees.
Documents For Company / LLP / Society / Body Corporate / Firm
- Name of the Company/LLP/Society/Body Corporate/Firm.
- Passport Size Photo of all Promoter/Members/Directors/Partners.
- Identity Proof (Driving License or Passport or Voter ID) of all Promoter/Members/Directors/Partners.
- Address Proof (Mobile Bill or Electricity bill or Bank Statement) of all Promoter/Members/Directors/Partners & Not Older than 2 Months.
- PAN Card (Mandatory).
- Passport is mandatory for Foreign National or Non-Resident India (NRI).
- Area Of Business.
- Registered Office proof.
- Property Owned (Sale Deed or Electricity Bill) OR Property Rented ( Rent Agreement).
- Bank Accounts Details.
- DSC of Authorised Person.
- Group photo of all Employees.
- Wage Sheet of all Employees.
Employee Consider For EPF Registration
The following person included in the list of the employee as per the EPFO Act are:-
- The person Directly or Indirectly employed in premises or department or branch or office or other premises of the factory/establishment (Principal Employer) on wages.
- The person employed outside the premises of the factory/establishment but that premises supervised by Principal employer or his agent.
- The contractual employees working in Factories/Establishments.
- Part-time employees.
- Directors/managers/Managing Directors/officer of the company.
But Excluded the following person from the list of an employee are:-
- An Apprentice or Trainee
Procedure of EPF Registration
Process of EPF Registration
- Collection of documents as per the Checklist.
- Attestation & Notarization of all the Documents.
- Preparation & signing of Authorisation Letter.
- Preparation of Digital Signature of Authorised person.
- Check the Jurisdiction of EPF regional Register office.
- Application made in E-Form EPFO department.
- Submission of various Return of Declaration as required.
- Preparation & fill the details of the establishment.
- Fill the data of all employees.
- Fill the details of an authorised person.
- Attachment of Address proof, Identity proof & other relevant documents.
- Attachment of Digital signature of principal employer & Authorised person.
- Follow up with EPFO regional Department;
- Submission of documents, if required.
- Verification of Employer & employee details.
- Issuance of a Registration certificate.
- The Registration certificate has 21 Digit EPF Code number.
- EPF Code number is used for further communication with the department.
- All the Employee submit their family photo.
- Employer Collect all the Identity & Address proof of Employee.
- Preparation of Wages sheet of the employees.
- Employer submits all details along with Wages sheet.
- After submission, the EPFO Department issued Insurance Certificate to the employees.
- The Temporary identity card is future reference No.
- Registration of employee provides all EPFO registration benefits.
- Temporary convert to the permanent Identity card after 3 months of employment.
- It’s one-time registration of employee & No need to change if there is a change in employment.
- The same registration transferred to other employment.
Format of EPF Registration Number
- The EPF number is issued by the EPFO department after checking all documents filed.
- The EPFO department issued the 21 digits alphanumeric number to Factories/Establishments after successful registration under EPF & MP Act 1952.
- The format of EPF number is “HR PAS 094110 000 1054321” & consist of the following Information are:-
- “HR” represent the state of registration (Eg. Haryana “HR”);
- “PAS” represent the EPFO regional office in whose jurisdiction Factories/Establishments falls;
- “094110” represent the unique ID of the Factories/Establishments issued by the EPFO department;
- “000” represent the extension code of Factories/Establishments (It’s used for big organisation);
- “1054321” represent the original EPF number issued to Factories/Establishments & its employee-specific.
Procedure of EPF Withdrawal
The employee wants to withdraw any amount from Provident Fund (EPF) and there is two way to do so are:-
- Physical Submission of Withdrawal application with EPFO department or
- Online Submission of Withdrawal application through EPFO portal.
- The employee made a physical application through the new composite form (Aadhar) or Composite form (Non-Aadhar) for Provident Fund (EPF) with EPFO department.
- In the case of the new composite claim form (Aadhar) the employee made a physical application without approval or attestation of the employer with the EPFO department in whose jurisdictional falls.
- The employee filed a physical application to respective jurisdiction of EPFO department through Composite claim form (Non-Aadhar) & he also needs approval or attestation of the employer for EPF withdrawal.
- For the partial withdrawal of Provident fund (EPF) amount by the employee then he needs to furnish an only Self-declaration or Self-certification to EPFO department.
Due to Covid-19, The EPF registration department not accept any physical or offline application for registration by the employer hence he required to make an online application.
- The person can also apply for online withdrawal of Provident Fund (EPF) by submitting an online application to the EPFO department.
- To make online application employee required to have the following two things are:-
- UAN (Universal Account Number) with registered Mobile number &
- The UAN of the employee is Linked to KYC or Link to Aadhar card along with Bank account Details.
Procedure of Online EPFO Withdrawal
- The Person go to the EPFO portal;
- The Employee need to login into the EPFO portal with UAN & Password or
- If the employee is login first time then he needs to register himself on the portal.
- Then click on manager tab & click on KYC and verify & correct the following details are:-
Amendment Due to Covid-19
- The Union labour ministry of India allowed the employee to withdraw part of their pension held with the Employees’ Provident Fund Organisation because of the pandemic.
- Subscribers can withdraw 75% of their savings or 3 months basic pay and dearness allowance, whichever is lower.
RELATED TO EPF REGISTRATION
All the Factories/Establishment employ 20 or more worker / labour / employees are mandatorily required to have PF registration under EPF & MP Act 1952.
The Term “UAN” denoted to Universal Account Number” and it’s allotted to an employee of registered factory/establishment. The UAN number consists of 12 digits unique number used by the employee to track his EPF balance and able to withdraw PF fund. The UAN number is generated only after the employer or Factory or Establishment register that employee on the EPFO portal.
UAN number used by the employee to do the following activities are:-
- Check Employee Details;
- Check PF balance;
- Withdrawal PF amount any time;
- Apply for pension after retirement;
- Register his UAN number with another employer In case of a change in Job etc.
Yes, The employer is required to file a return as well as payment toward the PF account upto 15th day of the following month.
If an employer is failed to make PF payment within the prescribed time then the following penalty is imposed by the EPF department are:-
- Delay upto 2 months:- 5% interest on Due amount;
- Delay between 2-4 Months:- 10% interest on Due amount;
- Delay between 4-6 Months:- 15% interest on Due amount;
- Delay beyond 6 months:- 25% interest on Due amount.
Every registered employer or Factory or Establishment required to file the following return with EPFO department are:-
Monthly Return:- Filed the PF return upto 25th of the following month.
Annual Return:- Filed the Annual PF return of 31st March upto 25th April.
The Employer is required to file monthly and annual return in the prescribed form.
The EPF registration provides the benefits of Insurance, Retirement fund, Pension, Higher return, Interest on PF amount, Tax benefits & PF withdrawal any time.
The Employee is not registered himself on government EPFO portal then he not able to get any access of his PF account and not eligible for retirement, pension 7 Insurance benefits & not able to withdraw any amount or fund from his EPF account.
Yes, PAN number of Employer (Factor or Establishment) is mandatory for PF registration.
The applicant need to follow the following steps are:-
Step 1:- Collection of Documents as the checklist provides by us.
Step 2:- Preparation of PF application
Step 3:- Apply for PF registration of Factory or Establishment through Online or Offline Mode to EPF Registering authority;
Step 4:- The EPF department intimate you after the PF registration.
It’s advisable to you kindly consult the lawyer or expert or professional before applying for PF registration because the PF application shall include various Important clause or provision which is not understandable by a normal person.
Yes, The Digital signature of Employer is required for PF registration. In the case of Company or LLP or Body corporate the digital signature of Authorised Director or Partner or Person is required.
The Employer has both options whether he apply online or offline but due to coronavirus or COVID-19 physical or offline is not allowed until further notice.
The employee PF contribution is 12% of his wages and In case of an employer, 8.33% to employee pension Scheme (EPS), 0.50% to Employee Deposit Linked Insurance Scheme (EDLI) & 3.17% to Provident fund (EPF).
We provide Online PF registration services in Mumbai, Bangalore, Chennai, Delhi, Gurgaon, Jaipur, Kolkata, Bhiwadi, Ajmer, Jhansi, Bhopal, Indore, Kerala, Pune and all the major cities in India.
Yes, The Foreign company register in any country having branch or project office in India is required to do PF registration if the company have 20 or more employees.
Yes, The changes are allowed in the PF registration certificate such as Correction applicant name or any spelling mistake subject to the approval of designating EPF authority.
We Estellaconsultancy taken maximum 3 days for filing the PF registration application subject to availability of documents demanded by us from the applicant.
The Applicant has Address proof, Identity proof, Ownership Proof, Bye-laws, wage sheet & Group photo of all employees, Establishment or factory details for PF registration in India.