Employees Provident Fund (EPF) is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of the Employees’ Provident Fund Organisation (EPFO) which is one of the world’s largest social security organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is like a benefit to an employee during the retirement provided by the organisation (EPFO).
Which is a factory engaged in any industry having 20 or more persons.
To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.
The employer must obtain the EPF registration within one month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.
Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration. Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central Provident Fund (PF) Commissioner.
The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.
All the employees will be eligible for a PF from the commencement of their employment, and the responsibility of deduction and payment of PF lies with the employer. The EPF contribution of 12% is paid equally by the employer and employee.
The employee's PF contribution is 12%, which is deducted from the employee's basic salary. The employer also contributes an amount equal to 12% of the basic salary of an employee. If the establishment has employed less than 20 employees, the PF deduction rate will be 10%.
The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:
Establishment detailsThe employer must provide the email ID and mobile number of the authorised person.
Employers must provide details of the contact person like a manager. The details required are name, date of birth, gender PAN, designation date of joining and address details.
IdentifiersThe identifiers are the license information that the employer needs to provide.
Employment detailsThe employment details required to be provided are the Employee strength, Gender, Wages above limit and Total wages.
Branch/DivisionBranch details of the establishment, such as name/premise number, LIN (Labour Identification Number) and address.
ActivitiesThe employer needs to enter the NIC Code (National Industrial Classification) and select the nature of business and the activities included from the drop down lists available.
The following documents need to be attached to the “Registration Form for EPFO” by the employer-
Section 36(2) of The Employees’ Provident Fund Scheme, 1952 mentions EPF Form 5. The form allows organisations, as well as the EPFO, to record the number of people who are new to the scheme. Once an employee has been successfully enrolled, they will be assigned a Universal Account Number, which will be used to deposit both the employee’s and the employer’s contributions. The Employee Provident Fund Organization ensures that all companies under its jurisdiction participate in the EPF scheme. It is the employer’s responsibility to provide the EPF facility to all of its employees.
You can simply download EPF Form 5 from the official website of EPF India or visit your HR department. Form 5 has to be submitted by the employer for all new joinees by the 15th of every month.
What is excluded from wages under EPF?Following are the entities which are excluded from wages as per the Employee Provident Fund:
Post 01.04.2012, the employers are required to make remittances only after generating challans from the employer portal of the EPFO. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.
Yes, the registration procedure has to be completed for every establishment.
If the employer forgets the user ID or password, then the employer must click on the “Forgot Password” link in the login screen. The password can be reset using the establishment id, primary email id, and mobile number.