Online PF (Provident Fund) Registration

Employee Provident Fund - Overview

The purpose of the Employees Provident Fund is to give workers a safety net when they age. For those employed by governmental agencies, the public sector, or the private sector, making a contribution to the fund also offers tax savings. Both the company and the employee make monthly contributions to the fund during the working years, which can be used for retirement. Once the number of employees reaches 20, all entities are required to register with the Provident Fund Department within 30 days. There could be a penalty for any delay.

Who qualifies for EPF registration?

For Employer

All establishments must abide by the PF Registration requirements.

• That has involved 20 individuals or more.
• Any other establishment with fewer than 20 employees must have this information specified in the notification on behalf of the central government.

For Employee

Employees earning below Rs. 15,000 per month must join the EPF scheme as per regulations. Those with a basic pay exceeding Rs. 15,000 monthly upon employment are exempt from PF contributions. However, they can choose to participate and contribute alongside their employer and the Assistant PF commissioner.

The contribution amount for PF

The contribution to the Provident Fund (PF) is typically a percentage of your salary that you and your employer contribute towards your retirement savings. The specific amount can vary depending on the rules and regulations of the PF scheme in your country or region.

The Provident Fund contribution is usually 12% of the employee's basic salary plus dearness allowance, and the same amount is contributed by the employer. However, there are different rules for certain categories of employees and organizations.

If you provide more details about the country or region you are inquiring about, I can give you a more specific answer regarding the amount of PF contribution.

Division of PF contribution

The 12% contribution is allocated across different subdivisions as follows:

• 3.67% is directed to the Employees' Provident Fund (EPF).
• 1.1% is designated for EPF administration charges.
• 0.5% is allocated to the employee's deposit-linked insurance.
• 0.01% contributes to EDLI (Employee Deposit Linked Insurance) administration charges.
• The remaining 8.33% is earmarked for the Employees' Pension Scheme (EPS).

Documents Required for Registration

• PAN of the Director, Partner, or Proprietor
• Proof of address (any utility bill will do; however, it should be no more than two months old)
• The proprietor, partner, or director's Aadhar card.
• Bank Statement Or Canceled Check
• The director, partner, or proprietor's digital signature.
• rented, hired, or lease agreement, if one exists.

EPF (Employees' Provident Fund) Charges Explained

• The contributions for EPF are rounded to the nearest rupee for each employee, covering their share, pension contribution, and EDLI contribution. Employers contribute the difference between the employee share and pension contribution.
• Monthly EPF administrative charges are rounded to the nearest rupee, with a minimum payment of Rs.500. However, if there are no members in a month, the minimum administrative charge reduces to Rs.75.
• For EDLI, monthly administrative charges are also rounded to the nearest rupee, with a minimum of Rs.200 payable. If there are no members in a month, the minimum administrative charge for EDLI is Rs.25.
• In cases where establishments are exempt from PF scheme inspection charges, they pay 0.18% (minimum Rs.5) as inspection charges instead of administrative charges. Similarly, if exempted under the EDLI scheme, establishments pay a minimum of Rs.1 at 0.005% as inspection charges instead of administrative charges.

Due Date

The employer is required to deduct the employee's contribution from his wages prior to issuing the salary to the employee. Afterwards, within 15 days of each month's end, the employer's share and the employee portion must be paid to the EPFO.

When it comes to returns from a debt instrument, the EPF is impressive. The interest collected is tax-free, and the money is backed by the sovereign. EEE (exempt, exempt, exempt) status is enjoyed by the PF since contributions are deducted from income. Seldom do debt instruments offer such large yields along with certainty and safety. Therefore, it is preferable to move the PF account while changing jobs and to resist the urge to take money out of the account.