PF Registration Services
Get your business on the right track with Gubera Consultancy’s streamlined PF registration services. Our expert team ensures hassle-free registration for Provident Fund (PF), helping you fulfill your statutory obligations and provide valuable benefits to your employees
By partnering with Gubera Consultancy, you can simplify your PF registration process and ensure compliance with labor regulations. This not only helps you avoid any penalties or legal issues but also empowers your workforce by providing them with the benefits of the Provident Fund. Your employees will appreciate the security and financial stability that comes with PF registration.
Contact us today to get started and let’s empower your workforce together. Our dedicated team is ready to assist you in fulfilling your statutory obligations and ensuring a smooth registration process. Trust Gubera Consultancy to handle your PF registration needs and experience the peace of mind that comes with expert assistance.
Don’t worry we can customize the Package based on your Requirements as well . Let’s Start your Business Journey Now.
Understanding the Employee Provident Fund Scheme for Indian Employees
Employee Provident Fund: A Scheme for Indian Employees
The Employee Provident Fund (EPF) is a scheme for Indian employees that is regulated by the Provident Funds and Miscellaneous Provisions Act, 1952. Under the umbrella of the Employees Provident Fund Organization (EPFO), all establishments that employ 20 or more employees can apply for PF registration in India. In some cases, establishments employing less than 20 employees may also be eligible for PF registration, subject to certain circumstances and exemptions.
Eligibility for EPF Registration
For employers, PF registration is mandatory for all establishments that have engaged 20 or more employees. In the case of establishments with less than 20 employees, the central government must specify the eligibility criteria in a notification. For employees, those drawing a monthly salary of less than Rs. 15,000 need to mandatorily become members of the EPF. Employees whose basic pay is more than Rs. 15,000 per month at the time of joining are not required to make any PF contributions. However, they can still choose to be a member and make contributions in collaboration with the employer and the Assistant PF Commissioner.
Contribution for EPF
The employer is required to obtain PF registration within one month of attaining the employee strength. Failure to abide by this requirement may result in applicable penalties. Once registered, the establishment continues to fall under the purview of the EPF Act, even if the number of employees falls below the required limit.
The employer is responsible for contributing 12% of the basic salary, dearness allowance, and retaining allowance. An equal amount of contribution is to be made by the employee. In the case of establishments with less than 20 employees, the EPFO rules state that the contribution rate for both employees and employers is limited to 10%. In most cases, the contribution is calculated based on the basic salary for employees in the private sector.
The 12% contribution is divided into the following subdivisions:
- 3.67% towards the Employees Provident Fund
- 1.1% towards the EPF administration charges
- 0.5% towards the Employee’s Deposit Linked Insurance
- 0.01% towards the EDLI administration charges
- 8.33% towards the Employees Pension Scheme
With the EPF scheme, employees receive a lump sum amount that includes their own contributions, as well as the employer’s contributions, along with interest upon retirement or resignation.
Understanding the Employees Pension Scheme and its Benefits
What is the Employees Pension Scheme?
The Employees Pension Scheme is a scheme that is part of the Employees’ Provident Fund (EPF) in India. Under this scheme, 8.33% of the employer’s contribution is routed towards the employee’s pension. The calculation is based on a fixed amount of Rs.15,000. If the basic pay of the employee is Rs.15,000, then Rs.1250 will be routed towards the employee pension scheme. However, if the basic pay is less than Rs.15,000, then 8.33% of the amount will be routed towards the pension, and the remaining balance will be retained in the EPF scheme.
Retirement Benefits
Upon superannuation, the employee will receive their full share of the EPF, with the employer’s share reserved for credit in the EPF account. This ensures that employees have a secure and reliable source of income during their retirement years.
Documents Required for Registration
When registering for the Employees Pension Scheme, employers are required to attach several documents with the registration form. These documents include:
- PAN of the partner, proprietor, or director
- Address proof (such as a utility bill, not older than 2 months)
- Aadhar card of the proprietor, partner, or director
- Cancelled cheque or bank statement
- Digital signature of the proprietor/partner or director
- Hired/rented or leased agreement (if applicable)
EPF Charges
The contribution towards the Employees Pension Scheme, employee share, and EDLI (Employee Deposit Linked Insurance) contribution are all rounded to the nearest rupee. The employer’s share is calculated as the difference between the employee’s share and the pension contribution.
For EPF administrative charges, the monthly payment amount is rounded to the nearest rupee and a minimum of Rs.500 is payable. However, if the establishment has no members in a particular month, the minimum administrative charges applicable will be Rs.75.
Similarly, for EDLI administrative charges, the monthly payment amount is rounded to the nearest rupee and a minimum of Rs.200 is payable. If the establishment has no members in a month, the minimum administrative charge is Rs.25.
In case the establishment is exempted from the PF scheme, inspection charges of 0.18% (minimum Rs.5) are payable in place of the administrative charges. For establishments exempted under the EDLI scheme, inspection charges of a minimum of Rs.1 @ 0.005% are payable in place of the administrative charges.
Due Date for Payment
Before paying the salary to the employees, the employer must deduct the employee’s contribution from their wages. The employee’s portion and the employer’s share must be paid to the EPFO within 15 days of the close of every month.
Benefits of EPF
The EPF offers several benefits to employees. The EPF stands tall in terms of returns from a debt instrument. The money is sovereign-backed, and the interest earned is tax-free. The EPF enjoys EEE (Exempt, Exempt, Exempt) status, as contributions are deductible from income. This makes it a highly attractive investment option, providing high returns with safety and assurance.
It is advisable to transfer the PF account at the time of switching jobs and to avoid the temptation to withdraw the money. By doing so, employees can continue to enjoy the benefits of the EPF and secure their financial future.
