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Overview of EPF Registration

Employee Provident Fund (EPF) is a scheme that offers retirement benefits to all the salaried employees irrespective of working in Government or Public or Private Sector organizations. The term, “employee” includes the range starting from experienced professionals to Security Guards, Housekeeping, etc. However, an apprentice, intern, and a migrating employee are excluded from the ambit of the EPF Scheme. EPF registration is regulated and administered by the EPFO (Employee Provident Fund Organization).

The companies or the entity having employee strength of twenty or more employees is required to get itself registered under the EPF scheme. However, the organizations having less than twenty employees can also voluntarily apply for the EPF Registration. Moreover, the Co-operative Societies are required to have employee strength of fifty or more for obtaining EPF Registration. It shall be noteworthy to note that the companies are required to obtain EPF registration within one month from hiring twenty employees or it may result in a penalty.

The Employee Provident Fund and Miscellaneous Provisions Act, 1952, act as the governing law for the EPF Registration. As per this act, both the employer and employee are mandatorily required to contribute 12 percent of their basic wage to the respective EPF account.  One of the most significant benefits of having an EPF account is that the EPF numbers remains the same even after changing jobs.

What is Employee Provident Fund?

Employees Provident Fund is a government-based scheme under the Employee Provident Funds and Miscellaneous Provisions Act, 1952. It acts as a retirement benefit to an employee which is provided the organization. Any company having more than twenty employee working is mandatory required to obtain EPF Registration under EPF Act. The objective behind the EPF Scheme is to mainly maintain a healthy relationship between the employer and employee. Employee-Employer bond. 

What is the Employee Provident Fund Organization?

EPFO or the Employee Provident Fund Organization is the largest social security body with a huge volume of financial dealings taking place every day. According to the Annual report of 2016-2017, it holds around 19.34 crore accounts concerning its members. Moreover, all the rules and regulations of the EPF Act are regulated and administered by the EPFO (Employee Provident Fund Organization).

Who are all Eligible to Obtain online EPF Registration?

The listed below are the entities eligible to obtain Online EPF Registration:

  • Any Establishment which is employing more than twenty employees during any time in the previous financial year.
  • Any Factory irrespective of the industry, having more than twenty employees during the previous financial year.
  • The Central Government at any time can ask an establishment to obtain compulsory EPF Registration irrespective of the employee count. The same is possible only after providing two months’ notice to that concerned establishment. Such an establishment or company is then required to get themselves registered under the EPF scheme on an immediate basis.

Who are all Exempted from the Registration under EPF Scheme?

Any company or establishment having less than twenty employees is exempted from the necessity of getting them registered under the EPF Act. Such companies, if want can still acquire registration under the EPF scheme. However, the same will then be termed as Voluntary EPF Registration.

Who is an Employee for EPF Scheme?

The ones who are considered as an employee are listed below:

  • Full-time Employees,
  • Part-Time Employees,
  • Employee Working at Home,
  • Contract Employees,
  • Full-time Consultants.

However, the following listed are ones outside the ambit of an employee:

  • A retired employee,
  • An employee who is settling abroad permanently,
  • Apprentice,
  • Interns.

What are the Benefits of Online EPF Registration?

The following listed are the benefits of Online EPF Registration:

  • Risk Coverage: The most significant benefit annexed with the Provident Fund Registration is that it covers the risk of both employees, and their dependents. The term risk means the situation concerning the employee’s retirement, illness, or death.
  • Uniform Account: One of the major facets of a PF Account is that it is both continual and transferable. It means that the same account can easily be carried forward to any other place of employment.
  • EDLI Scheme: EDLI is the acronym form for the Employee Deposit Linked Insurance Scheme. All the PF account holders are eligible under this scheme. This scheme requires a 0.5% deduction in salary.
  • Long-Term Goals: The amount saved in the PF account helps the employee in fulfilling his or her long-term goals like marriage or higher education or any other situation that needs the urgent availability of funds, as the amount available in the PF account often comes handy during these situations.
  • Includes Pension: The employer is required to contribute some proportion (specifically 12% of the employee’s monthly salary) to the EPF fund together with the employee. Moreover, out of the total contribution made by the employer, 8.33 percent is transferred to the EPS (Employee Pension Scheme). This will help the employee in saving the right amount of pension for his retirement.

What is the Contribution Rate prescribed for EPF Scheme?

The listed below are the Rate of Contribution for an Establishment Employing more than Twenty Employees:

  • Employer’s Contribution Rate: The concerned Employer is required to share his part of contribution at the rate of 12 percent of the Employee’s basic salary plus DA (Dearness Allowance).

  • Employee’s Contribution Rate: The respective employee is required to share his part of contribution at the rate of 12 percent his monthly basic salary.

Rate of Contribution for establishment hiring less than 20 employees:

As per the EPFO (Employee Provident Fund Organization) rules, the listed below establishments are required to contribute at the rate of 10 percent of the employee’s basic salary plus DA (Dearness Allowance):

  • Any establishment which is having an employee strength of less than twenty employees.

  • Any Sick Industrial Company as acknowledged by the BIFR (Board for Industrial and Financial Reconstruction).
  • Any establishment which is having accumulated losses equivalent to its total net worth at the end of any financial year.
  • Any establishment dealing either in the following listed industries:
  1. Jute
  2. Beedi
  3. Brick
  4. Coir and
  5. Guar gum Factories

What is the Rate of Interest charged on the EPF Deposits?

As per the declaration made by the EPFO on 05.03.2020, the rate of interest charged on the EPF Deposits has been reduced to 8.50% from 8.65% for the financial year 2019-2020. Earlier, 8.65% was charged as the Rate of Interest on the EPF Deposits.

What is a Universal Account Number?

UAN is the abbreviated form for the Universal Account Number. It is a 12-digit number issued to every employee at the time of registration by the EPFO. Allotment of this number requires details like Name, PAN Card, Father’s Name, Aadhaar number, Date of Birth (DOB), etc. Moreover, one of the most significant benefits of UAN is that it provides autonomy regarding the EPF account in the hands of employees and automatically reduces the role of the employer. Same UAN can be used by the employee throughout his service period, irrespective of job change.

What are the Documents Needed for Online EPF Registration?

The documents required for obtaining EPF Registration are listed below:

  • Name of the Employer.
  • PAN Card details of the Employer.
  • Employer’s ID Proof in the form of Passport/ Driving License/ Voter ID.
  • Address proof of the Registered Office in the form of Sale Deed (in case it is a self-owned premise) or Rent Agreement/ Lease Deed (in case of the Rented Premises).
  • Utility Bills like electricity bill, Water Tax Receipt, etc., but not older than two months.
  • A copy of the Certificate of Registration is needed in the case where the establishment is Trust/ Society/ LLP (Limited Liability Partnership) or Company.
  • A copy of the Partnership Deed, Address Proof, and ID Proof of each partner is needed in the case where the establishment is a Partnership Firm.
  • A canceled cheque (bearing the pre-printed Account Holder’s Name and Account No)
  • Balance Sheet Details
  • A copy of First Sale Bill
  • A copy of MOA (Memorandum of Association) and AOA (Articles of Association), if the applicant is either a Private or a Public Limited Company
  • Details regarding the total wages dispersed in a month
  • Details of the Employees needed for the allotment of UAN (Unique Account Number):
  1. Aadhar card
  2. PAN card
  3. Bank account details like the Account Number, and IFSC Code
  4. Contact Number and Email-ID
  5. Date of birth (DOB) as per the Aadhar Card
  6. Designation of the concerned employee

What is the Procedure to obtain Online EPF Registration?

The below-listed are the steps included in the Procedure to obtain Online EPF Registration:

  • An employee is required to visit online on the official EPFO portal, i.e., https://unifiedportal-mem.epfindia.gov.in/memberinterface/ for the activation of UAN (Universal Account Number).
  • Now, the said employee is required to fill all the details like the UAN (Universal Account Number), Member Id, PAN Card, Aadhar Number, etc.
  • After that, in the next step the employee is required to provide his or her asked details like the Name, Contact Number, Address, etc.
  • For completing the form, the employee is required to correctly fill the CAPTCHA shown on the screen.
  • After completing the application form, the said employee will then receive an OTP (One Time Password) on his registered mobile number with UAN.
  • In the last step, the employee is asked to check the box saying “I Agree” and authenticate the OTP for the UAN activation.

How much Penalty is prescribed for the Employer’s Delay?

The table listed below describes the rate of interest charged as penalty on an employer in case there is a delay in making PF payment

S.No

Period of Delay

Rate of PenaltyImposed (p.a.)

1.

Upto 2 months

5 percent

2.

2 to 4 months

10 percent

3.

4 to 6 months

15 percent

4.

Beyond 6 months

25 percent

 

Package Inclusions:

  • Drafting PF application for Employers
  • Filing Employee Details
  • End-to-End follow up with the department
  • EPF Establishment Number
  • Expert legal consultation

FAQs for EPF Registration

12 percent of the salary will be contributed by both the employer and employee respectively.

Yes, an employer can contribute more than 12 percent. However, the same will termed as a Voluntary Contribution.

The concerned employee can login to his PF Account by using the allotted UAN (Universal Account Number).

A minimum of 20 members are needed for obtaining EPF Registration.

All remunerations which are earned by an employee as per his employment contract

The listed below are the allowances which are exempted from the calculation of Basic Wage:

  1. The cash value of any Food Allowance,
  2. Any DA (Dearness Allowance),
  3. HRA (House R­ent Allowance),
  4. Overtime allowance,
  5. Bonus,
  6. Any Gifts made by the employer;

Yes, the EPF holder is eligible to withdraw a full PF amount, but only after attaining the age of retirement or on his termination of service.

If in case the person has not resigned, then he or she is eligible to withdraw only a part of the amount available in the PF account.

It takes around five to thirty days to get the PF amount in the respective bank account.

It usually takes around three to five working days for the documents to be checked and for the approval of KYC (Know Your Customer).

Employees have the power to update their KYC details at the EPF UAN portal. However, the same needs to be verified by the respective employer through EPFO (Employee Provident Fund Organization) employers’ portal.

If the request regarding name change is approved by the concerned employer and is submitted to the PF office. The same can now take around fifteen days to two months for the approval.

Yes, an employer is qualified to hold an employee’s PF account for a deposit. However, he is not allowed to either misuse or act arbitrarily, as an employer withholds the PF amount based on trust.

Yes, it is necessary and mandatory to update the KYC (Know Your Customer) details online.

Yes, out of the 12 percent EPF contribution made by the employer, 8.33 percent is further deposited to the EPS (Employee pension scheme). Moreover, the same can be withdrawn only on the retirement of the concerned employee.

A company or an establishment can register up to three authorized signatories by just updating its DSC (Digital Signature Certificate) on the EPFO (Employee Provident Fund Organization) portal. Further, the updated DSC is required for the online verification of the KYC Documentation, and also for completing the PF claim.

Out of the total contribution made by the Employer, i.e., 12 percent, around 8.33 percent is converted further into the Employees' Pension Scheme (EPS), whereas the remaining amount of 3.67 percent is transferred into the EDLI account.

UAN is allotted by the EPFO (The Employees’ Fund Organization) to the contributory members of EPFO.

Yes, employers can easily search UAN (Universal Account Number) of other establishments by just selecting the option saying “Search UAN,” and then using the registered Member ID or the UAN.

This scheme is pertinent to all the companies or business establishments which are having employee strength of 20 or more employees.

The listed below are the employee excluded from the EPF Scheme:

  1. A retired employee,
  2. An employee who is settling abroad permanently,
  3. Apprentice
  4. Interns

An employer is solely responsible for depositing the entire amount which is taken out from the employees’ salaries along with his contribution.

Yes, the EPFO (Employee Provident Fund Organization) being a Governmental Organization is covered under the ambit of the RTI Act.

At present, any PF withdrawals made by an individual are credited directly into his (beneficiary’s) bank account.

No, as per section 12 of the EPF and MP Act, an employer is not qualified to reduce salary against the payment of EPF, and the same is strictly and explicitly prohibited.

No, an employer is not eligible to join the PF (Provident Fund).

The nominee appointed will become eligible to receive the pension in the case of the death of the pension member.

The applicant can visit the unified portal, i.e., https://dcmsme.gov.in/howtosetup/grgxx01x.html for checking the status of his or her UAN (Universal Account Number).

Yes, Swarit Advisors is a 100% online platform rendering all over the nation no matters wherever the individual is conducting his or her business. The only thing required is an internet connection on the mobile or laptop, and we are all set to get your registration done

The listed below are the benefits of EPF Registration:

  1. Risk Coverage
  2. Uniform Account
  3. Employee Deposit Linked Insurance Scheme
  4. Emergency Needs
  5. Pension Coverage

The contribution made by the employer and employee in the Provident fund is exempted from Income Tax. Hence, the same is not taxable.

The listed below are the types of provident fund available in India:

  1. Statutory Provident Fund
  2. Recognized Provident Fund
  3. Unrecognized Provident Fund
  4. Public Provident Fund

No, there is no for an individual to be at our office as the entire procedure of EPF registration is 100 percent online. Moreover, a scanned copy of all the documents must be sent by way of mail.

A period of 4 to 5 working days is required for the EPF Registration.

The documents required for obtaining EPF Registration are listed below:

  1. Name of the Employer.
  2. PAN Card details of the Employer.
  3. Employer’s ID Proof in the form of Passport/ Driving License/ Voter ID.
  4. Address proof of the Registered Office in the form of Sale Deed (in case it is a self-owned premise) or Rent Agreement/ Lease Deed (in case of the Rented Premises).
  5. Utility Bills like electricity bill, Water Tax Receipt, etc., but not older than two months.
  6. A copy of the Certificate of Registration is needed in the case where the establishment is Trust/ Society/ LLP (Limited Liability Partnership) or Company.
  7. A copy of the Partnership Deed, Address Proof, and ID Proof of each partner is needed in the case where the establishment is a Partnership Firm.
  8. A cancelled cheque (bearing the pre-printed Account Holder’s Name and Account No)
  9. Balance Sheet Details
  10. A copy of First Sale Bill
  11. A copy of MOA (Memorandum of Association) and AOA (Articles of Association), if the applicant is either a Private or a Public Limited Company
  12. Details regarding the total wages dispersed in a month
  13. Details of the Employees needed for the allotment of UAN (Unique Account Number):
  1. Aadhar card
  2. PAN card
  3. Bank account details like the Account Number, and IFSC Code
  4. Contact Number and Email-ID
  5. Date of birth (DOB) as per the Aadhar Card
  6. Designation of the concerned employee

The listed below are the steps included in the process of EPF Registration:

  1. Employer’s Registration
  2. Verification through OTP (One Time Password)
  3. Establishment Login
  4. Registration Certificate
  5. KYC Update for every employee
  6. Common Registration

There is no need to make any extra payment. We, Swarit Advisors will send an all-inclusive invoice to our clients, with no hidden charges.

In this case, the contribution will be calculated based on the wages paid to the employee in a calendar month.

Yes, of course. Apart from the employees’ contribution to the EPF scheme, employers also contribute which goes to the Employee Pension Scheme (EPS). Therefore, if you hold a PF account, you will surely get it as a pension when you retire.

The PF contribution rate for both employees and employers is 12% of the salary. The employer is supposed to contribute 12% of the basic wages in addition to dearness allowance and retaining allowance. However, if the employees’ count in the organization is less than 20, then the PF contribution rate is 10%.

The following entities are not to be counted:

  1. A proprietor/partner
  2. A contractor rendering the services of his employee
  3. Those apprentices engaged under the Apprentice Act, 1961
  4. Employees working on contract for legal, technical, professional services, and tax consultants.

Yes, the members of the Employee Provident Fund (EPF) can check their account statement online by logging in on the official website of EPFO.

No, it’s not mandatory for employees drawing salary above Rs. 15000 per month to contribute to the provident fund.

The interest rate of EPF for the financial year 2018-2019 was capped at 8.65%. However, in the financial year 2017-2018, it was recorded to be 8.55%.

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