PF is one of the primary platforms of savings for working class in India. It is one of the most beneficial and popular investment schemes for the salaried people in India. The Employees” Provident Fund Organisation is a statutory body under the Ministry of Labour and Employment, Government of India administers social security schemes framed under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952.
At present, the Act and the Schemes framed there under provide for three types of benefits:
- Contributory Provident Fund
- Pensioner benefits to the employees / family members
- Insurance cover to the members of the Provident Fund
APPLICABILITY – EMPLOYER
An Establishment or business is mandatorily required to obtain EIN No. if total employee strength is 20 or more. The total strength of employee Includes contractors or temporary employees like housekeeping staff, daily wage worker security or other temporary workers in the business. All the persons employed in the factories or establishments irrespective of their wages and type of employment. However the following persons are not to be counted
- A proprietor or a partner
- A contractor lending the services of his employee
- An apprentice engaged under the Apprentice Act, 1961
- Persons employed on contract for professional service legal, technical, tax consultants.
Even if an organisation has an employee strength less than 20 then also it can voluntarily apply for registration if it too company can apply it wished to extend the benefits of PF to its’ employees.
Provident fund Registration certificate should obtain within 30 days from the date of completing 20 employees.
REGISTRATION PROCESS – EMPLOYER:
- Every employer of an establishment to which the Employee Provident Fund Act applies, should submit an application in requisite form to the concerned authorities stating all the necessary information as required.
- On receipt of such application, the concerned authority shall verify the particulars submitted and allot an Establishment Code Number.
APPLICABILITY – EMPLOYEE
An employee at the time of joining the employment and getting wages up to Rs. 15,000/- is required to become a member. In this act, Wages means and includes Basic + Dearness Allowances, Cash value of food concession and retaining allowances, if any. He / she is eligible for membership of fund from the very first date of joining a covered establishment.
REGISTRATION PROCESS – EMPLOYEE
- An application is filed in triplicate containing all the details of an employee with the concerned authorities.
- On receipt of application, the Provident Fund office would open an account in the name of the employee along with the other existing employees of the same organization and issue a account number to the concerned employee.
- For all future correspondences with the Provident Fund office account number has to be quoted with the authorities.
- The Provident Fund office issues an account statement every year to all the account holders.
Once registered, the registration can transfer if the employee switches company.
HOW WE CAN HELP YOU
Registration
- Filing of necessary papers and obtaining PF registration code number for new establishment within specified time as per Act.
- Form 5A (Return of ownership)
- Form 9 (Revised)
- Submission of Specimen Signature
Documents Required
- Name of the organisation
- Date of setup of the organisation
- Scan copy of organisation’s PAN (Proprietor’s, in case of proprietorship concern)
- Scan copy of Licences available in name of the organisation. (like S&E, GST, PT etc.)
- Scan copy cheque of organisation’s bank A/c
- Address of the organisation’s with address proof
- List of Directors/Partners
- Address proof of Proprietor/Directors/Partners
- Email address, Mobile Number of Proprietor/Directors/Partners
- Copy of First Sale Bill/Job Work Bill and first Purchase Bill
- Monthly strength of employees from Date of setup
- Current List of employees with details:
- Name
- Father’s Name
- Date of Joining
- Date of Birth
- Mobile Number
- Postal Address
- Name of Nominee
- Grade (Unskilled, Semi, Skilled)
- Salary
- Designation
- ID proof (Aadhaar and PAN)
- Digital Signature of Proprietor/Directors/Partners
- Bank A/c number with IFS Code
Monthly Process
- Preparation of monthly Challan for EPF & deposited into bank within prescribed time as per Act.
- Prepare Monthly Return :
- Form 12A (Revised)
- Form -5 (New Joinees)
- Form-10 (Resigned)
- Preparation of Form- 7(IF)
- PF Eligibility Register
- Maintenance of all statutory registers needed by the PF authorities.
- Preparation of Monthly PF Ledger.
- Nomination & Declaration Forms in Form No. 2 (Revised) of the new employees
- Declaration form in Form- 11(Revised)
- Attend PF inspector for inspection of records, appearing before the associated authorities on behalf of the employer in 7-A proceedings under EPF Act
- All assessment & inspection from EPF department, when needed.
- Information regarding any amendment/changes in the act will be informed instantaneously
Annual Process
- Form No. 3-A (Monthly Contribution of the employees)
- Form No. 6-A (Annual Return)
- Bank Reconciliation
- “DBF” Database File in soft copy
- Assist in issuance of Annual PF A/c slips.
- PF Withdrawals & Transfers
- Receipt of forms (19 & 10-C) after 60 days of leaving of the employee making settlement.
- Receipt of PF transfer forms (Form 13) from new appointees and sending them to RPFC/Ex-Employers trust for getting the fund transferred through the associated RPFC office.
- Taking care of the process of PF withdrawals and Transfer within specified time as per Act.
- Verification of papers to assure that same are within the norms as specified under the rules.
- Acknowledging the transferred received.
PF Contributions
- Provident fund contribution is recovered @ 12% of wages from employees who earn up to a maximum wage of Rs.15,000/- p.m. Employer is also required to contribute towards provident fund; the deduction rate is same as employee’s contribution i.e. 12% of the wages. Of this 12%, 3.67% goes to Provident Fund and the balance of 8.33% goes to Pension Fund.
- The employer is required to pay the contribution recovered from employees into the provident fund account on or before 15th of the following month.
- Employees can contribute more than this statutory maximum which will be considered as Voluntary Contribution. An employee can contribute voluntarily over and above the stipulated rate of PF contribution by opting for voluntary PF scheme at any rate as he she desires i.e. up to 100% of Wages. However, the contribution to VPF should be a certain % of wages and not a fixed amount. But the employer is not bound to contribute at the enhanced rate It is suggested that the enhancement can be done at the beginning of the financial year for comfort level of calculation
