The Employees’ Provident Fund (EPF) is funds which is built through regular, monthly, contributions made by an employee and his/her employer to offer social security benefits to employees of a particular organization at the time of retirement, Death, also offers financial security in times of emergency and if an employee is rendered unfit for unemployment. Applicabilty
The Act whole of India except to the State of Jammu and Kashmir.
Establishment which is factory engaged in industry with 20 or more employees have to provide PF to their employees.
Any other Establishment employing 20 or more employees notify by central government.
Any establishment having less than 20 person can voluntarily register u/s-1(14) of the act
Amount of contribution
Contributions are made at 12% but in case of following establishments it is 10%.
establishments with less than 20 employees
sick industries as identified by the BIFR
establishments whose year-end losses are as much or more than their net worth
jute, beedi, brick, coir and guar gum establishments
establishments subject to a set wage limit; currently Rs.15,000
Benefits of EPF
Employees earn interest on their EPF balances.
The interest earned and the total amount withdrawn at maturity are tax-free, .
|Submission of required documents completed in all aspects.||Preparation and submission of application by the professional.||Issuance of License.||20 to 25 working Days subject to government processing time.|
BENEFITS OF EMPLOYEES’ PROVIDENT FUND (EPF) REGISTRATION
PENSION AT RETIREMENT
Employees are also eligible for Pension after Retirement.
Member may withdraw the amount accumulated in his account. Provident Fund Accumulation plus interest can be withdrawn upon retirement, resignation and death. Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.
Provident Fund Amount is given to Family members of the employees after the death of employee.
Frequently Asked Questions (FAQs)
Documents Required for Registartion?
Partnership deed if the company is a registered partnership firm
A copy of the Certificate of incorporation for a Public or Private Limited Company. This should be issued by the Registrar of Companies
Societies should furnish a copy of their registration certificate
Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
Societies should furnish a copy of the rules and objects of the society
All legal documents which might be required under the Income Tax Act
PAN details of company
Proof of incorporation – first sales invoice/ license issued by competent authorities
One cheque out of all bank accounts
Consent letter of the majority of employees with their details and signatures(in case of voluntary coverage)
Date of agreement and any subsequent date mentioned in the said agreement for voluntary coverage. (Only in case of voluntary coverage)
Salary details of employees
All license in name of establishment and their details
Balance sheet details
Information Required for Registartion?
Name and address of company
Head office and branch details
Mention date of incorporation/registration of company
Fill up details of employees – total employee strength
Activity the business/enterprise is involved in – i.e. manufacturing, production, service, etc.
Legal details – This pertains to legal status of a company, i.e. whether it is a private firm/public company, partnership or society, etc.
Owner details, including designation and address of Directors and partners
Particulars related to wage component of employees, i.e. total wage disbursed during a month
Details of bank with whom company has banking relationship
Basic details of employee (name, date of joining, salary, etc.)
The factory license number, date, issued by and date of trial production (only for factory)
The details of the Manager(s) with their personal — details (only for factory).
In case the establishment is already covered under the — ESIC, the ESIC Code
If the establishment is already on lease, the start date — and the details of the lessee(s)
The employment details as on application date, number of excluded employees and the date on which the number of employees crossed 19 (or 5 or 49 as applicable)
The list of branches of the establishments at different — locations with their address and number of employees
Contribution by employer?
Difference of EE share and Pension Contribution
Whether the member is required to be registered on Member Portal to file the Transfer Claim online?
Yes, the member is required to be registered on Member Portal to file the Transfer Claim online
What are the pre-requisite conditions to file the Transfer Claim online?
a) Both previous and present member IDs (P.F. Account No.) should be available in EPFO database. b) The employer should have registered the digital signature certificate of his authorized signatories with EPFO.
Whether member can edit his details i.e. father’s name, relationship, date of birth, date of joining, date of exit as available in the EPFO database?
No, the member cannot edit his details i.e. father’s name, relationship, date of birth, date of joining, date of exit as available in the EPFO database.