Employees Provident Fund [EPF] is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organisation (EPFO) which is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.
Applicability of EPF Registration for Employers
EPF registration is mandatory for all establishments-
- which is a factory engaged in any industry having 20 or more persons, and
- to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify in this behalf.
Central Government may apply any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration
Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.
Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.
The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic wages plus dearness allowance plus retaining allowance. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.
Steps For EPF Registration for Employers
The person needs to follow the under mentioned steps given below
Step 1- Register the organization with EPFO
Visit the website and register the organization with EPFO. In the home page of the Unified portal, there is an option called “ESTABLISHMENT REGISTRATION”.
Step 2: Read the User Manual
Click on the “ESTABLISHMENT REGISTRATION” and it will take you to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before registration process.
Step 3: Register DSC
The employers who are already registered can login with their credentials i.e. with the Universal Account Number [UAN] and password. This instruction manual will explain the process of Employer Registration which is to be followed by registration of DSC [Digital Signature Certificate] of the Employer. Getting DSC registered is a pre-requisite to submitting a fresh application for ERF registration.
Step 4: Fill the Employer’s Details
Tick on “ I have read the instruction manual” completely. Click on “REGISTER BUTTON” given below. This will take you to the new page where all the employer’s details need to be filled in. The fields marked with the red star (asterisk) are mandatory to be filled in.
Step 5: Fill the details correctly
- First Name: The first name, middle name and last name should be entered exactly as furnished to the Income Tax Department. Any variance in the name of the Income Tax Department will lead to rejection as and when data is verified online.
- Employer PAN: After entering the employer’s PAN, a message will appear that shows employer is not registered previously. PAN will also be verified like name and an online application will be permitted.
- User Name: One can select the username of its choice. The system will automatically show whether the same username is available or not.
- Hint Question/ Answer: One can select the hint question and hint answer of its choice which will be helpful to the person in case one forgets the password. After filling up this, the registration process gets completely and you need to fill the CAPTCHA Code (Characters are shown in the image) then click on GET PIN button.
- Mobile PIN: The person will get the Pin number on the same mobile number with which you registered and then click on “I agree to the above declaration “
- Activate E-mail link: An e-mail link will be sent to the given e-mail id which is to be activated to enable the submission of an application for online registration of Establishment.
Documents Required For EPF Registration
The list of documents required for PF registration would vary as per the type of entity who wishes to register themselves which are as follows
|Proprietorship Firms||Society/Trust||Partnership Firms||LLP / Company||Employees|
|Applicant’s Name.||Certificate of incorporation||Certificate of Registration Firms||Incorporation Certificate||Name
Date of joining
|PAN Card.||MOA and Bye-Laws||Partnership deed||ID proof of Directors||Date of birth
|Id proof – Driving license/Passport/Voter Card.||Pan card number||Id proof of partners – Driving license/Passport/Voter Card||DSC of Director||Name of nominee
|Address proof for the premises.||president & members
|List of all partners with
|List of all directors with
ID proof (Aadhaar Card/ PAN Card)
Bank A/c number with IFSC code
|residential address proof
|MOA, AOA||Voluntary application
date of agreement
For All Other Entities
- First sale bill.
- First purchase bill of raw material and machinery.
- GST Registration Certificate, if registered
- Bankers details- name, address, branch, IFSC code
- Record of a monthly strength of the number of employees.
- Register of salary and wages, all vouchers, all balance sheets from day one to current date of provisional coverage.
- Salary and PF Statement.
- Cross canceled cheque.
Till F.Y.2017-18, the EPF interest rate stands at 8.55 percent. In terms of returns from a debt instrument, EPF certainly stands tall. The money is sovereign-backed and the interest earned is tax-free. In fact, it enjoys the Exempt, Exempt, Exempt (EEE) status as contributions are deductible from income.
There is hardly any debt product that gives such high return with safety and assurance. Therefore, it’s better to transfer the PF account at the time of switching jobs and avoid the temptation to withdraw the amount.