EMPLOYEE PROVIDENT FUND (REGISTRATION)
What is Employee Provident Fund?
• It is a scheme under the Employees’ Provident Funds and Miscellaneous Provision Act, 1952.
• It is like a benefit to an employee on his/her retirement.
Applicability of EPF Registration for employers:
It is mandatory for all establishments:
Having more than 20 employees.
The central government can make it compulsory for organization with less than 20 employees by giving two months notice.
Organization with less than 20 employees can voluntary contributes towards the EPF.
All the employee will be eligible for a PF from the beginning of their employment and the deduction and payment lies on the hands of the employer.
The PF Contribution of 12% should be equally paid each by the employer and employee. For organization less than 20 employees PF should be deducted at 10% of the basic Pay.
PF Admin Charges are calculated as a percentage of an employees' total PF Basic. The percentage charged is called PF Admin Percentage. The current EPF Admin charges are 0.50 %.
Under ABRY, Government of India is crediting for a period of two years both the employees’ share (12% of wages) and employers share’ (12% of wages) of contribution payable or only the employees’ share, depending on employment strength under EPFO. Under ABRY benefits are provided to every establishment registered with EPFO and their new employees (earning wage less that Rs. 15,000/- per month) if the establishments take new employees on or after 1.10.2020 and up to 30th June, 2021 or those who lost jobs between 01.03.2020 to 30.09.2020.
Details requirement of the employer for successful registration:
Name of the organization, address, incorporation date, PAN and type of organization.
In case of a factory: Factory license number, Date of license and place of issue of license.
In case of MSME, MSME registration detail are required.
In case of start up, start up registration details are required.
Email ID and mobile number of the authorized person.
Details of the contact person like a manager; Name, date of birth, Gender, Pan, designation, date of joining and address.
Branch details such as name, premise number.
Details of the Employees: (name, date of joining, strength etc)
Bank details.
STEPS FOR REGISTRATION:
DOCUMENTS NEED TO BE ATTACHED FOR EPF REGISTRATION:
PAN card of Proprietor, Partner or Director.
Proof of address in the form of electricity bill, telephone bill not older than 2 months.
Aadhar card of Proprietor, Partner or Director.
GST certificate or any license issued by the government for the organization.
Digital Signature of Proprietor, Partner or Director.
One Cancelled cheque of the entity.
Hired or lease agreement if any.
License proof issued by the identifier.
Frequently Asked Questions
ANS: a person with less than 21000 per month salary has to mandatory contribute to EPF. A person with higher salary can also contribute to EPF voluntarily.
ANS: In case of retirement or not in service for more then 2 month, a person can withdraw money from his EPF account.
