The Government of India will pay the employer and employee contribution to EPF account of employees for another three months from June to August 2020. The benefit is for establishments with up to 100 employees and where 90% of those employees draw a salary of less than Rs 15,000 per month. The contribution to EPF is reduced to 10% from 12% for non-government organisations.
Interest rate on PF deposits increased to 8.65% from 8.55% for the FY 2018-19.
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 on this behalf.
The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable .A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.
Central Government may apply the provisions to 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 salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.
EPF Registration Procedure
The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:
- Establishment details:
– Name of the establishment
– Incorporation Date
– Type of establishment
If the establishment is a factory then the following details must be provided:
– Factory License Number
– Date of License
– Place of issue
If the establishment is an MSME then MSME registration details to be provided.
- eContacts: The employer must provide email id and mobile number of the authorised person.
- Contact Person: Employers must provide details of the contact person like a manager. The details required are:
– Date of Birth
– Contact details
- Identifiers:The identifiers are the license information that the employer needs to provide.
- Employment details:
– Employee strength
– Type of activities
– Wages above limit
– Total wages
- Branch/Division: Branch details such as name/premise number and address.
- Activities: The employer needs to select the type of business and the activities included from the drop down lists available.
Steps For EPF Registration for Employers
The employee needs to follow the below-mentioned steps:
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 you will be taken to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before the registration.
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 prerequisite 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 the 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 complete and you need to fill the CAPTCHA Code (Characters are shown in the image) then click on the 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 Email link: An email 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
||LLP / Company
||Certificate of incorporation
||Certificate of Registration Firms
Date of joining
||MOA and Bye-Laws
||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
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.
Why should an employer register the establishment at the EPFO portal?
Post 01.042012, the employers are required to make remittances only after generating challans from the employer portal of EPFO. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.
What are the error messages that can be expected, and how can they be resolved?
When the employer is attempting to register the following error messages can show up:
- “No Record Found” upon entering the establishment id – The employer must verify the code and extension number and the EPFO office. If all details are accurate, then the employer must contact the concerned EPFO regional/Sub Regional office.
- “Your Establishment is already registered” upon entering the establishment id – The employer must verify the code number and extension number if any, and the correct EPFO Office. If the details are accurate, the employer must send a mail to the EPFO Helpdesk on firstname.lastname@example.org and mention “RESET REGISTRATION”. The employer will receive a form which has to be submitted under the signature of employer/Authorised signatory to the concerned local EPFO Office After getting SMS on successful resetting of registration; the employer can register again.
How can the employer modify the details post registration?
The employer can modify the details on the portal when the need arises. The procedure is as detailed below:
- Mobile Number – The employer must log in to the Employer Portal. Then click on the link “Edit primary mobile number” under “PROFILE”. The employer must enter the new mobile number, an SMS with a PIN on the new mobile number will be received by the employer. Enter the PIN and click “Change Primary Mobile”. Confirmation SMS will be received on the new mobile number, which is now the primary number.
- Email id – The employer must log in to the Employer Portal. Under the “PROFILE” Menu, click on the link “Confirm primary email”. The employer needs to enter a new email id replacing the id that appears. Then click on the “Send Verification link”. An email message will go to the registered email id. The employer must go to the email account and click the link in the message received. The verified email id will be recorded in the system, and in the future, all emails will be received on the new id.
If an employer or authorized signatory has multiple establishments, should he obtain registrations for all the establishments?
Yes, the registration procedure has to be completed for every establishment.
What if the employer forgets the User ID/ Password for login into the portal?
If the employer forgets the user ID or password, then the employer must click on the “Forgot Password” link in the login screen. The password can be reset using the establishment id, primary email id, and mobile number.