Salaried employees can participate in the Employees Provident Fund (EPF) for their retirement. The Employees Provident Fund Organisation of India (EPFO) oversees this fund. There are no exceptions to the Employees, Provident Fund, and Miscellaneous Provisions Act 1952 in India. Compliances provides very smooth and affordable PF registration in India to our clients.
EPF is an employee benefits scheme governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. This scheme is governed by the Employees’ Provident Fund Organisation (EPFO). Establishments employing 20 employees or more need PF registration. Companies with fewer than 20 employees can also apply for voluntary PF registration in India
Employers pay 6% of salary (basic salary + dearness allowance + retaining allowance) as PF contribution. employees also contribute. Employers and employees both have a 10% contribution rate in cases where the establishment has less than 20 employees. Private sector employees’ contributions are based on their basic salaries.
EPF membership is compulsory for all employees earning less than Rs 15,000 per month. An employee whose base pay at the time of joining is over Rs. 15,000 per month is not required to contribute to EPF. The employer can still consent to an employee drawing more than Rs 15,000 in pay becoming a member and making PF contributions.
If given two months’ notice, the Central Government can force organizations with fewer than 20 employees to contribute to EPF. EPF may be contributed on a voluntary basis by organizations with less than 20 employees. 12% of the employee’s basic salary is contributed to EPF by both employer and employee. The employer’s contribution is 10% if the company has less than 20 employees.
Read more about the PF Registration Online for Employer
A 12-digit number is given to every employer providing EPF contributions. That is permissible by EPFO. In spite of changing jobs, the UAN of an employee remains the same. Employees who change jobs are provided a new member identification number (ID), linked to their UAN. By submitting the UAN, you can request the new member ID. Upon creation, the member ID will be linked to the UAN of the employee.
UAN benefits employees
- With a new job comes a new unified PF account.
- This number makes it easier to withdraw (fully or partially) PF online.
- Employees can now transfer PF balances from old to new using their unique account number.
- By using your member ID or UAN, you can download PF statements (visa purpose, loan security, etc.) instantly.
- Employers will not have to validate your profile if Aadhaar and KYC are already verified for the UAN.
- Employers cannot access or withhold PF money from their employees using UAN.
UAN opening documents
- If you have just begun working or if you have just started working in a registered company, you need the following documents.
- Identifier – Any national identity card with a photo on it such as a driving license, passport, Aadhaar, SSLC book
- Any of the ID proof mentioned above with your current address would suffice as proof of your address
- A UAN must be linked to your PAN card
- An Aadhaar card is required if your bank account is linked to your mobile number
- A card for ESIC
A company must meet the following criteria to qualify for PF Registration:
- 20-person factories.
- Employing more than 20 people. The government defines this class.
- A small business with fewer than 20 workers that has been notified of mandatory registration for at least two months
- The employer and the employees agree to make PF claims to the Central PF Commissioner. After the agreement, an Official Gazette notice must be published.
- If the employee count is under 20, an establishment can opt for voluntary registration. A worker is eligible for PF from the moment of hire. PF contribution and deduction are the employers’ responsibilities.
In terms of the EPF Registration in India procedure, an employer can choose whether to register online or offline, with online registration being the preferred option today. Applicants can download the registration form from the EPFO website. To register successfully, employers should provide the following details.
- Details about the company.
- Headquarters and branches
- Date of incorporation or registration of the company
- Fill in details of employees – total employees
- The business/enterprise’s primary activity, such as manufacturing, production, service, etc.
- Company legal details tell you how a company was formed, i.e. whether it’s a private or public company, a partnership, a society, etc.
- Details of owners, including addresses of directors and partners
- Details on the wage component of employees, i.e. total wage paid a month
- Bank details for the company
- Info on PAN
- Employee details (name, salary, etc.) created by PAN.