PF Registrations

PF REGISTRATION: EMPLOYEE PROVIDENT FUND

Description: Employees Provident Fund is a scheme for the Indian Employees that is controlled by the Provident Funds and Miscellaneous Provisions Act,1952. The Employee Provident Fund is regulated under the umbrella of Employees Provident Fund Organization popularly known as EPFO.

All establishments that have employed 20 or more than 20 employees can apply for PF registration in India. The Employee gets an amount that includes the self and employer’s contribution with interest on retirement or resignation.

Eligibility of PF Registration:

For Employer:

• That has engaged 20 or more than 20 people.
• For any other establishment that has less than 20 people then the central government has to specify the same in the notification on the behalf.

For Employee

Employees drawing less than Rs.15000 per month need to mandatorily become members of the EPF. According to the guidelines, employees whose basic pay is more than Rs. 15000 a month at the time of joining are not required to make any PF contributions.

But an employee who is drawing pay of more than Rs. 15,000 can still be a member and make contributions with the employer and the Assistant PF commissioner.

The amount for the contribution of PF

The employer has to contribute 12% of the (Basic Salary + Dearness Allowance + Retaining Allowance). An equal amount of contribution is to be made by the employee. If the establishment has engaged less than 20 employees the EPFO rules state that the contribution rate for both the employees and the employer is limited to 10 %. In most cases the employees who are employed in the private sector it is on the basic salary on which the whole contribution is calculated.

The breakup of the PF contribution                                                           

• The 12 % contribution is divided into the following subdivision:
• 67% of the contribution towards the Employees Provident Fund
• 1% of the contribution towards the EPF administration Charges
• 5% of the contribution towards the employee’s deposit linked insurance
• 01% contribution towards the EDLI administration charges
• 33% towards the Employees’ Pension Scheme.

Documents Required for Registration:

• PAN of the Partner, Proprietor, or the Director
• Address proof (can be any utility bill but should not be older than 2 months)
• Aadhar card of Proprietor, Partner, or Director.
• Cancelled Cheque or Bank Statement
• Digital Signature of the Proprietor/ Partner or Director.
• Hired/ Rented or Leased Agreement If there is any.

EPF charges

• The contribution is rounded to the nearest rupee for each of the employees for the employee share, the contribution towards pension, and the EDLI contribution.
• The employer share is the difference between the employee Share and the pension contribution.
• The monthly payment amount towards the EPF administrative charges is rounded to the nearest rupee and a minimum of Rs.500 is payable.
• In case the establishment has no member in the month the minimum administrative charges applicable will be Rs.75.
• The monthly payment amount under the EDLI administrative charges is rounded to the nearest rupee and a minimum of Rs.200 is payable.
• In case the establishment has no member in the month, the payable minimum administrative charge is Rs.25
• Suppose the establishment is exempted from the PF scheme inspection charges of 0.18% (Minimum Rs 5) is payable in place of the admin charges
• In case the establishment is exempted under the EDLI scheme. The inspection charges of minimum Rs.1 @0.005% are payable in place of the administrative charges.

Benefits of PF registration:

• Employees’ Deposit Linked Insurance Scheme (EDLI).
• Pension Scheme for EPF account holder.
• Income Tax exemption.
• Partial Fund Withdrawals.
• Loan against PF.
• EPF Registration offers tax benefits. The interest rate earned on the EPF account is eligible for tax exemption.
• Hassle-free pension for post-retirement.
• Funds for crisis management. …
• Easy transferability. …
• Cater urgent requirement.

Process for PF Registration:

Step 1: Registering Company for EPF: Visit the EPFO web portal for registering your company. …

Step 2: Download User Manual. …

Step 3: Register on Unified Shram Suvidha Portal.: The “Establishment Registration” button on the homepage of the EPFO website will open the USSP (Unified Shram Suvidha Portal) sign up page. The employer needs to click the “Sign Up” button.

Step 4: Fill Up the Registration Form: After the creation of the account on the UUSP, the employer needs to login to the USSP and select the “Registration for EPFO-ESIC” button present on the left-hand side of the screen. Next, select the “Apply for New Registration” button on the right side of the screen.

Step 5: Attaching DSC.: After filling all the “Registration Form for EPFO” and attaching the relevant documents, the employer’s Digital Signature Certificate (DSC) is to be uploaded and attached to the form. Once, the DSC of the employer is uploaded, the employer will receive a successful completion of registration form message and an email from Unified Shram Suvidha Platform with a confirmation that the EPFO registration has been completed.

Due date: Before paying the Salary to the employees the employer must deduct the employee’s contribution from his wages. Later, the employee portion and the employer’s share will be payable to the EPFO within 15 days of the close of every month.