Provident Fund Registration

Employees Provident Fund (EPF) is governed by the Employees Provident Funds and Miscellaneous Provisions Act, 1952. It is a benefit scheme which provides a retired employee, irrespective of sector, with benefits during his retirement tenure. This is regulated by one of the world’s largest social security organizations, the Employees’ Provident Fund Organisation (EPFO).

Characteristics

  • It is mandatory for an establishment consisting of more than 20 employees.
  • The number of employees has a role in the PF Employee Registration irrespective of their salaries.
  • The establishment needs to obtain epf registration within 30 days of exceeding 20 employees under it.
  • It is a voluntary act of an organization of fewer than 20 employees to take coverage of provident fund for its consenting employees.

Type of Employees Covered for PF

  • Full-time employees
  • Part-Time Employees
  • Contract employees
  • Full-time counsellors
  • Employees who are working from home.
  • The specified employee of certain establishment directed by the Central Government for compulsory registration.

Benefits & Advantages

  • It acts as an insurance to the family in case of death before retirement.
  • Allowed withdrawal within one year before retirement is up to 90% of total PF balance.
  • Advance can be taken on unemployment up to 75% of total PF balance.
  • Pension after retirement is now subjected to the eligibility, in that situation PF helps for common living expenses.
  • Withdrawal for purchase of house, flat, dwelling house, addition/alteration of house and repayment of loan for the purpose.
  • Final settlement of PF account on retirement or two months after ceasing to be an employee provides financial assistance for further future responsibilities.
  • The employees can claim up to 12 per cent of the employer’s contribution as exempt from tax. Further, any contribution exceeding 12 percent in a financial year will be taxable.
  • A member can take non-refundable advances during service period for various purposes:

1. Marriage of self, daughter, son, brother or sister.

2. Post-matriculation education of son/ daughter.

3. Treatment of illnesses of self/ family: TB, leprosy, paralysis, cancer, mental derangement heart ailment or major surgical operation.

There is no age restriction to become a member of the Provident Fund.

No, an employee is not required to become a member and hold the PF membership. Further, if both the employer and employee are willing PF membership then he/ she can become a member by giving option under Para-26 (6) of the PF Scheme. The option has to be submitted to the EPF office within 6 months of joining of that member.

No, wages & Employer are the first requirement for EPF and no recovery can be affected in their absence. Any contribution by the member is necessary to match with the employer's share of contribution.

It is matter of two conditions: Firstly, the person who is employed for wages in any kind of work, manual or otherwise, in or in, connection with the work of a establishment must be covered under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, and secondly, person must get his wages directly or indirectly from the employer. The definition of employee also includes any person employed by or through a contractor in or in connection with the work of the establishment.

The PF contribution is 12% which should be divided equally between the employer and employee. The contribution of employer is 12% of the sum of basic wages, dearness allowance and retaining allowance. In case of voluntary registration, PF deduction rate is 10%. In the circumstances where employer is paying for both provident and pension then also the employer will pay 12% out of which 8.33% of pay will be diverted to Pension Scheme and the rest 3.67% will be diverted to EPF.

According the EPF scheme, a claim is required to be settled within 20 days.

It can be claimed through two modes:

Online: This mode is applicable if PF account is seeded with Aadhaar, PAN and Bank account is updated. It is important to note that only composite claim form (Aadhaar) for PF final withdrawal, Pension withdrawal benefits and PF non-refundable advances can be filed online.

 

Offline: This mode is applicable on all types of claims.

Currently, the maximum assurance benefit is Rs. 600,000/-

In respect of an establishment defaulting in remitting contribution to the Employees’ Pension Fund 1995 for any period, withdrawal benefit will not be paid to its members for the defaulted period. The member is entitled to withdrawal benefits only for the period during which the contributions are received.

The following types of remuneration are excluded from

  1. Bonus
  2. House Rent allowances
  3. Cash value of food concession
  4. Dearness allowances
  5. Gifts by the employer

Provident Fund Registration

  • Drafting of Application
  • Filing of Registration Form
  • EPF Registration Number of the Organisation

Documents Required

Both entity and the employee need to submit some documents.

Entity
  1. PAN Card
  2. Address proof of company
  3. GST Registration Certificate
  4. Certificate of Incorporation of company/ Partnership deed
  5. Cancelled Cheque for verification of account details
  6. Digital Signature of Director/ Authorized Signatory of the company.
Employee
  1. PAN
  2. Company’s ID
  3. Address Proof
  4. Declaration of the Employee
  5. Specimen Signature of the employee

Provident Fund Registration


Provident Fund Registration is mandatory for an establishment consisting of more than 20 employees. Apply for employee pf registration with Filecrat in 5 days.

₹4,499.00

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In 5 Working Days

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