The Employee Provident Fund or PF is a retirement saving scheme provided by the government for all salaried employees in India, on which fixed interest is regularly paid. The Employee Provident Fund is a perquisite given by the employer to their employees over and above their basic remuneration.
The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.
EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.
Eligibility Criteria for Registration under Provident FundAny organisation or factory with at least 20 employees needs to get themselves registered under EPF Scheme.
Establishment with less than 20 employees may get themselves voluntarily registered.
Liability to deduct and deposit EPF arises for all employees with wages of Less than INR 15,000 per month,
Employees of an organization, which are already registered under EPF Scheme, are directly eligible for getting their Provident Fund account opened from date of their joining.
WHAT ARE THE BENEFITS OF EPF REGISTARTION ?Risk coverage: The most fundamental benefit of the Provident Fund is to cover the risks employees and their dependents that may arise due to retirement, an illness or their demise.
Uniform account: One of the most important aspects of the Provident Fund account that it's steady and transferable. It can be carried forward to any other place of employment.
Long-term goals: There are many long-term goals such as Marriage or higher education that require the urgent availability of funds. The accumulated PF amount often comes handy during such occasions.
Covers pension: Apart from the employee’s 12% contribution towards EPF, an equal amount is contributed by the employer, which includes 8.33% towards Employee Pension Scheme (EPS).
Documents and Information required for the registration under EPF schemeFollowing is the list of document required for registration under EPF scheme:-
1. Establishment Details:
2. E-contact details
Details of Contact Person:
3. Details of Primary and other owners
4. Details of any other certificate. E.g. GST Registration, Shops and Establishment registration or any other certificate granted by government authority.
5. Details of employees covered under EPF Act.
6. Details of Branches and divisions.
7. Details of activities
8. Proof of Address:
9. Agreement between employer and employee in case of voluntary coverage.
How to Register for EPF?To register with EPF scheme go to http://www.epfindia.gov.in/site_en/index.php
Register with the website by selecting “Register Establishment”.
Before registering, you will be provided with the instruction manual and read the details carefully.
For already registered users log in to the portal using your credentials- username and password. The instruction manual will appear describing the procedure followed by Digital Signature Certificate (DSC).
Click on “ I have read the instruction manual” and proceed to fill up all the details to register.
An email link and pin will be sent to your given email address and phone number, clink on the link to activate your email address and phone.
Upload the required documents, to get yourself registered.
How ABC Outsource can help in EPF compliances?At ABC Outsource, we help you with:
Obtaining registration under EPF/ESIC Act
Adding, deleting or modifying records of Employees on regular basis
Computation of ESIC and EPF liability and ensuring that the same is deposited within due date
Filing returns under EPF and ESIC.
ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer. For this purpose, registration with the government is required which is called ESI registration.
PF is directly related to the employee's pension. Apart from the employee's contribution of 12% towards EPF, an equal amount is contributed by the employer. Out of this, 8.33% goes towards the Employee Pension Scheme (EPS).
The PF beneficiary will not be able to access the Employer Portal of EPFO and view his PF status unless he has gone through the PF registration process.
EPF:-The employer and employee both contribute 12% each of the employee’s salary (basic + dearness allowance) to the EPF. However, in case an establishment opt for EPF registration voluntarily then 12% reduces to 10%.
Deducted EPF (i.e., employer and employee’ contribution) is deposited in the pension account and EPF Account of the employee in a pre-defined proportion.
Without PF registration, an employee can't view his PF status on the EPFO portal and also he won't be able to claim any PF amount.
To check the account balance of EPF on the EPFO portal, you need to have an active UAN ( universal account number). Further, to check the balance, an employee is required to create online credentials on EPF portal. Post creation of login credentials, please, visit https://passbook.epfindia.gov.in/MemberPassbook/Lo , and then enter your UAN and password. After you enter the credentials, the website allows you to download and view your EPF account statement.
Following are the entities which are excluded from wages as per the Employee Provident Fund:
