The Employee Provident Fund and Miscellaneous Provisions Act, 1952 is an act to provide for the institution of Provident Fund, Pension Fund and Deposit-Linked Insurance Fund for employees in factories and other establishments. EPF is an initiative of the government to provide proper care of the employees and to ensure their social security.
Employees’ Provident Fund has been set up under the EPF and MP Act, 1952 which is applicable to the whole of India except in the state of Jammu and Kashmir (Jammu and Kashmir Employees’ Provident Funds and Miscellaneous Provisions Act, 1961 is followed). It is applicable to:
To every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed.
To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf.
Employees drawing basic salary up to Rs.15,000 have to compulsory contribute to the provident fund. It is optional for employees drawing above Rs.15,000 to become member of the provident fund.
It consists of three schemes:
Employees’ Fund Scheme For the purpose of providing a post retirement benefit for the employees or a class of employees or their legal heirs in case of death, employed under an establishment to which this Act applies.
For the purpose of providing for Superannuation pension, retiring pension or permanent total disablement pension to the employees and the Widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.
For the purpose of providing life insurance benefits to the employees of any establishment or class of establishment.
|1. Employer Contribution||3.67%||8.33%||0.5% or Rs 500 whichever is higher|
|2. Employee Contribution||12%||-||-|
Employer Contribution: 0.5% of basic (to PF Admin)
Current Rate of Interest is 8.5% per annum.
For availing services such as PF withdrawal or PF transfer online, it is mandatory to have verified KYC such as Aadhaar, PAN. The employees with verified Aadhaar, PAN and Bank details seeded against their UAN can submit their PF Withdrawal/Settlement/Transfer claims online.
An employee can apply for complete withdrawal in the following cases:
An employee can apply for partial withdrawal in the following cases:
This amount is calculated each month. To simply the math, assume that your basic salary is Rs.20,000 per month including dearness allowance.
Your EPF contribution:
Your contribution towards EPF is 12% of Rs.20,000 which amounts to Rs. 2,400 each month.
Your employer’s EPF contribution
Your employer’s contribution towards Employee Provident Fund (EPF) is 3.67% of Rs.20,000 which comes to Rs. 734 per month.
Your employer’s contribution towards Employee Pension Scheme (EPS) is 8.33% of Rs.20,000, which comes to Rs. 1,666 per month.
Your employer’s contribution towards Employee Deposit Linked Insurance Scheme (EPS) is 0.5% of Rs.20,000, which comes to Rs. 100 per month.
Total Employer Contribution for a month is Rs. 2500.
Total EPF contribution (by you and your employer) for a month amounts to Rs.3,134 (Rs.2,400 + Rs.734).
In order to check whether your employer is making contributions towards your EPF account or to see your account balance, you can use your UAN and log into your EPF account on the EPFO member portal.
The online registration of establishments in EPFO is a crucial step for employers as it deduces TDS legitimate.
To ensure that the employees’ provident fund registration is accumulated according to the nation’s governing body’s regulation, they have to make an account before proceeding any further.
They can go through the process of online EPF registration themselves or take payroll management services like PionHR.
However, The PF account online registration is a significant step towards starting the procedure of getting through the nation’s statutory importance.
Institutions bearing 20 employees or more need to fulfill the PF registration requirements. But what about the rest? That is what this article intends to find out.
To initiate the procedure of PF account online registration, you have to ensure that your organization adheres to the requirements set by the legislating body.
The steps are rigorous and lengthy; with PionHR’s help, you can make EPFO online registration easy. Nonetheless, here are some of the requirements that need to be fulfilled.
To know more about it, check the employees’ provident fund scheme 1952 online or seek PionHR’s expertise. You can also check the articles on UAN registration as well as PF balance and EPF claim status.
Many employers and employees wonder about the procedures of how to EPF registration. Nonetheless, the procedure is straightforward and manageable.
The process can be done in two ways; one can choose to go along EPF online registration procedure or the offline one.
Along with the EPF online registration form, the form called “Proforma for Coverage” has to be filled in using the details mentioned above to complete employees’ provident fund registration.
With this Proforma for Coverage, the employers will have to indulge in EPF form 5A online submission with Annexure 1 to complete all the formalities.
The steps to EPF online registration for employees are different compared to the employers.
One can choose to get thee online EPF registration with the sought assistance of PionHR.
Nevertheless, to get the EPF online registration done, one must start by following the steps below.
With this process, your online EPF registration for employees has been completed.
To promote a healthy work culture between the employer and the employee, it has become important to strike unity, and with the help of EPF registration for employees, it can be done.
The procedure of provident fund registration online is lengthy and takes time which can be later spent on other essential tasks. Take the help of PionHR, an effective Payroll Outsourcing Services and Payroll management Software, to get it done in a heartbeat.