PF Registration

Provident Fund for Employees

The Provident Funds and Miscellaneous Provisions Act,1952 governs the Employees Provident Fund, which is a plan for Indian employees. Employee Provident Funds are governed by the Employees Provident Fund Organization, commonly referred to as EPFO.

In India, any businesses with 20 or more employees are eligible to apply for PF registration. Establishments with less than 20 employees may be eligible for PF registration in specific situations, depending on the circumstances and the exemption. On retirement or resignation, the employee receives a sum that comprises both the employee’s and the employer’s contributions, plus interest.

Who is eligible for EPF enrollment?

Employer’s PF For all establishments, registration is required. This has gotten the attention of at least 20 people.

The central government must state the same in the announcement on behalf of any such establishment with less than 20 personnel.

Employees earning less than Rs.15000 per month are required by law to join the EPF. Employees whose basic pay is more than Rs. 15000 per month at the time of joining are not required to make any PF payments, according to the standards.

However, an employee earning more than Rs.15,000 per month can still be a member and contribute to the PF with the help of the employer and the Assistant PF Commissioner.

The amount of your PF contribution

In the event that the employer fails to comply with the appropriate penalties, the employer must acquire PF registration within one month of achieving the strength. Even if the number of employees falls below the statutory minimum, a registered establishment remains subject to the Act.

Employers are required to contribute 12% of (Basic Salary + Dearness Allowance + Retaining Allowance). The employee is expected to provide an equivalent amount. The EPFO guidelines specify that if the business employs less than 20 people, the contribution rate for both employees and employers is limited to 10%. In the majority of situations, employees in the private sector compute their whole contribution based on their basic pay.

The PF contribution is broken down into three parts.

The 12% contribution is broken down into the following categories:

  • 67 percent of employee contributions go to the Employees Provident Fund.
  • Some percent of the contribution goes to the administration of the EPF.
  • Charges 5 percent of the employee’s contribution goes toward deposit-linked insurance.
  • Contribution of 0.01 percent to EDLI administration costs.
  • The Employees Pension Scheme receives 8.33 percent of all contributions.
What is the Employees Pension Scheme, and how does it work?

The Employees Pension Scheme, which is valued at Rs.15,000, receives 8.33 percent of the employer’s contribution. If the person’s basic pay is Rs.15,000, the amount routed to the Employee Pension Scheme is Rs.1250. If the Basic Pay is less than Rs.15,000, 8.33 percent of the money will be routed to the EPF programme, with the remaining amount remaining in the EPF system. The employee would get the full portion of superannuation, with the employer’s half going into the EPF account.

Required Documents for Registration

The following papers must be included to the registration form by the employer:

  • Partner’s, Proprietor’s, or Director’s PAN
  • Proof of Address (can be any utility bill but should not be older than 2 months)
  • Proprietor, Partner, or Director Aadhar card
  • Cheque or Bank Statement Cancelled
  • The Proprietor/Partner or Director’s Digital Signature
  • If applicable, a Hired/ Rented or Leased Agreement.

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