PF REGISTRATION
Employees Provident Fund is a scheme for the Indian Employees that is controlled by the Provident Funds and Miscellaneous Provisions Act,1952. The Employee Provident Fund is regulated under the umbrella of Employees Provident Fund Organization popularly known as EPFO.
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NATURE OF PROFIDENT FUND (PF)
Employees Provident Fund is a scheme for the Indian Employees that is controlled by the Provident Funds and Miscellaneous Provisions Act,1952. The Employee Provident Fund is regulated under the umbrella of Employees Provident Fund Organization popularly known as EPFO.
It is regulated under the purview of the 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 like a benefit to an employee during the retirement provided by the organization.
WHO IS ELIGIBLE FOR EPF REGISTRATION ?
For Employer
PF Registration is mandatory for all the establishments-
- That has engaged 20 or more than 20 people.
- For any other establishment that has less than 20 people then the central government has to specify the same in the notification on the behalf.
For Employee
Employees drawing less than Rs.15000 per month need to mandatorily become members of the EPF. According to the guidelines, employees whose basic pay is more than Rs. 15000 a month at the time of joining are not required to make any PF contributions.
But an employee who is drawing pay of more than Rs.15,000 can still be a member and make contributions with the employer and the Assistant PF commissioner.
Table of Contents
IMPORTANT FOR AN EMPLOYER TO REGISTRATION FOR EPF
Since TDS is deducted from employees’ salaries, EPF registration is a critical process for employers. Furthermore, they would be required to process remittances only after employers generated challans through the EPFO employer portal. As a result, they must go through this procedure.
- Risk coverage: The Provident Fund’s most fundamental benefit is to cover the risks that employees and their dependents may face as a result of retirement, illness, or death.
- Uniform account: One of the most important aspects of the Provident Fund account is that it is consistent and transferable. It is transferable to any other place of employment.
- Employee Deposit Linked Insurance Scheme (EDLIS): This scheme is available to all PF account holders. According to it, the life insurance premium is deducted at the rate of 0.5 per cent of the salary.
- Long-term goals: Many long-term goals, such as marriage or higher education, necessitate the immediate availability of funds. During such times, the accumulated PF amount is frequently useful.
- Emergency needs: Certain unanticipated events, such as marriage or other family gatherings, as well as any mishap or illness, necessitate immediate financial assistance. The PF amount can be extremely beneficial.
- Pension coverage: Aside from the employee’s 12% contribution to EPF, the employer contributes an equal amount, which includes 8.33% to the Employee Pension Scheme (EPS).
DOCUMENTS REQUIREMENT FOR REGISTRATION
The employer has to attach the following documents with the registration form:
- PAN of the Partner, Proprietor, or the Director
- Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months).
- Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months).
- Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months).
- Aadhar card of Proprietor, Partner, or Director.
- Canceled Cheque Or Bank Statement
- Digital Signature of the Proprietor/ Partner or Director.
- Hired/ Rented or Leased Agreement If there is any.
TIMELINES FOR LLP REGISTRATION
The partnership firm registration process takes approximately 10 days, subject to departmental approval and reverts from the respective department.
FAQs ON EPF REGISTRATION
Q1. Is PF registration mandatory?
If you are an employer with an organization that employs 20 people or more, it is mandatory for you to register under the EPF scheme. If your organization employs less than 20 people, you can still opt to register under the scheme.
Q2. Is PF applicable to all employees?
The EPF scheme mandatorily applies to all the establishments that have employed a minimum of 20 people. The employer must obtain EPF registration within 1 month of attaining the employee strength.
Q3. What is the basic limit for PF registration?
Employees that draw less than Rs.15,000 per month need to get EPF registration mandatorily, and the employee drawing the Pay above the prescribed limit needs to get permission from the assistant PF commissioner to become a member.
Q4. Is PF registration mandatory?
PF registration is mandatory for all establishments with 20 or more persons, if the establishment has fewer than20 employees still a PF registration would be required. The employee can become eligible for PF right from the commencement of the employment and onus of deduction and PF payment is with the employer.
Q5. What if the employee doesn’t have PF?
If the employee does not want PF registration, he can fill the Form 11 at the time of joining the job. The employee can also submit a letter addressing the employer stating that he wishes to opt out of the Provident Fund Scheme.
