PF Registration is mandatory for all the organizations that have 20 or more employees. Such organizations are required to contribute a fixed amount towards Employee Provident Fund out of employee salary and wages.
Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the umbrella of the Employees’ Provident Fund Organisation (EPFO). Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.
PF registration is mandatory for all establishments-
a. which is a factory engaged in any industry having 20 or more persons, and
b. 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
Moreover, where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may voluntarily apply to the Central PF Commissioner. 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, the PF deduction rate will be 10%.
Further employer's share is broken as follows:
1. 3.67% of contribution towards Employees’ Provident Fund
2. 1.1% of contribution towards EPF Administration Charges
3. 0.5% of contribution towards Employees’ Deposit Linked Insurance
4. 0.01% of contribution towards EDLI Administration Charges
5. 8.33% of contribution towards Employees’ Pension Scheme
The employee portion and employer portion are payable to the EPFO, within 15 days of the close of every month. Employers need to register themselves with the Provident Fund. The PF account can be transferred easily in case of job switch. A Universal Account Number (UAN) is allotted to all employees.Documents required for PF Registration are:
1. PAN Card
2. Certificate of Incorporation (in case of Company)
3. Utility Bill ( Electricity Bill, Water Bill, etc)
4. Digital Signature (of the authorized applicant)
5. Cancelled Cheque
6. Consent of majority employees (in case of voluntary registration)
For more information, please visit https://epfindia.gov.in/site_en/index.php
For details regarding ESI Registration, click https://allroundtaxsolutions.com/esi-registration/