Employees' Provident Fund (EPF) Registration
Mandatory and Voluntary Registration with EPFO for Employee Welfare
About Employees Provident Fund Registration
A Establishment registration with employers provident fund organisation (EPFO) is mandatory if the number of employees exceeds 20 and may be obtained voluntarily if the employe's number is less than twenty. Our dedicated team will help you to your company with EPFO.
Meaning Of Employee
Full-time employees: Studies show that staffers who work from home are more productive than those who work in a typical office environment.
Part-Time Employees: A part-time job is a form of employment that carries fewer hours per week than a full-time job.
Contract Employees: A contract employee is an individual retained by a company for a predetermined time, for a predetermined price.
Full-time Consultants: A contract employee is an individual retained by a company for a predetermined time, for a predetermined price.
Mandatory Threshold and Voluntary Enrollment
Registration Criteria:
- Mandatory: Registration with the Employees' Provident Fund Organisation ( EPFO ) is mandatory if the number of employees in the establishment exceeds 20 .
- Voluntary: Establishments with less than 20 employees may obtain EPF registration voluntarily, provided they secure the consent of the majority of their employees.
- Penalty Note: Any delay in registration of EPF may result in a penalty .
EPF Contribution and Tax Benefits
Contribution Structure:
- Employer's Share: The employer's contribution to EPF is 12% of the employee's salary.
- Employee's Share: The employee's contribution is also 12% of their salary, which the employer deducts and deposits.
- Deposit Requirement: The employer is responsible for depositing both their contribution and the employee's deducted share.
Key Tax Advantages:
- Employer Contribution: The PF contribution made by the employer is generally tax-free in the hands of the employee (up to statutory limits).
- Withdrawal Exemption: The final withdrawn amount, including accumulated interest, is exempt from tax after a specific period of qualifying service.
Documents and Employee Definition
Broad Definition of Employee Includes:
- Full-time Employees
- Part-Time Employees
- Employees Working at Home
- Contract Employees
- Full-time Consultants
Documents Required for Registration:
- PAN Card of the Establishment.
- Certificate of Incorporation (or equivalent registration document).
- Cancelled Cheque of the Establishment.
- Address Proof: Rent agreement, Water/Electricity/Telephone Bill in the name of the establishment.
- Specimen Signatures of Directors and Authorised Signatories.
- Digital Signature of Authorised Applicant (Class-3).
- Consent of Majority of Employees (in case of voluntary registration).
Simple & Transparent Pricing for Pf Registration
Scale your features as your business grows. Find the plan that fits your needs today.
Basic Plan
- PF Registration (employees less than 25).
- Dsc charges are not included in package.
Standard Plan
Every month payment option Available
- PF Registration (employees less than 25)
- PF Return (ECR) for 1 year.
- Dsc charges are not included in package.
Premium Plan
Every month payment option Available
- PF Registration (employees less than 50)
- PF Return (ECR) for 1 year.
- Dsc charges are not included in package.
FAQ's on PF Registration
Your Questions Answered
When does EPF registration (Code Number) become mandatory for an establishment?
EPF registration is mandatory for any establishment (factory or organization) that has reached a strength of 20 or more employees at any point in time. The establishment must apply for registration within 30 days of reaching this threshold.
Is EPF mandatory for all employees in a registered establishment?
EPF contribution is mandatory for all employees drawing a basic salary and Dearness Allowance (DA) of up to ₹15,000 per month. Employees earning more than this limit may join with the joint consent of the employee and the employer.
What is the current mandatory contribution rate for EPF?
The mandatory contribution rate is 12% of the Basic Salary plus Dearness Allowance (DA). The employer contributes 12% (a portion of which goes to EPS), and the employee contributes an equal share of 12%.
What are the three components covered under EPF compliance?
The total employer contribution (12%) is distributed among three components: 1) EPF (Employee Provident Fund), 2) EPS (Employee Pension Scheme), and 3) EDLI (Employee Deposit Linked Insurance Scheme). The administrative charges are also part of the compliance.
What is the Universal Account Number (UAN)?
The UAN is a 12-digit permanent number allotted to every employee who contributes to EPF. The UAN remains the same throughout an employee’s career, even if they change jobs, ensuring portability and centralized management of their provident fund accounts.
What is the due date for the monthly EPF contribution and return filing?
The employer must deduct the employee's contribution, add their own share, and deposit the total amount with the Employees' Provident Fund Organisation (EPFO) by the 15th of the succeeding month.
What is the penalty for late or non-payment of EPF dues?
Late payments attract significant penalties in the form of interest charges (penal damages), which are levied at varying rates (e.g., 5% to 25% per annum) depending on the delay period. Continued non-compliance can lead to legal prosecution.
Can an establishment voluntarily register for EPF even if it has fewer than 20 employees?
Yes. An establishment with fewer than 20 employees can apply for Voluntary Coverage under the EPF Act. Once voluntarily registered, the provisions of the Act become mandatory for that establishment, just as they are for mandatory establishments.
