What is Employee Provident Fund?

The Employee Provident Fund (EPF) is like a savings plan for employees in India. It’s managed by a government organization called the Employees Provident Fund Organization (EPFO). If a company has 20 or more employees, they must sign up for EPF. But even if a business has fewer than 20 employees, they can still join voluntarily.

Here’s how it works: both the employee and the employer contribute money to the fund. Over time, this money grows with interest. When an employee retires or leaves their job, they get this accumulated amount, which includes their contributions and their employer’s contributions. So, in simple terms, it’s a way for employees to save for their future, and the government makes sure this money is managed and kept safe.

Application Requirements for Employee Provident Fund Registration

For Employers:

• Mandatory if your business has 20 or more employees.
• For businesses with less than 20 employees, the central government must specify the need.

For Employees:

• If your monthly salary is below Rs. 15,000, you must be a member of the EPF.
• If your salary is above Rs. 15,000 when you join, you don’t have to contribute, but you can choose to do so with your employer’s consent.

Contribution Amount:

• Employers and employees each contribute 12% of (Basic Salary + Allowances).
• If there are fewer than 20 employees, the contribution is limited to 10% for both.
• This contribution is divided into different parts, including the Employees Provident Fund, EPF administration charges, employee’s deposit linked insurance, EDLI administration charges, and the Employees’ Pension Scheme.

Employees’ Pension Scheme:

• 8.33% of the employer’s contribution goes to the Employees’ Pension Scheme.
• It’s calculated at Rs. 15,000, and the amount is Rs. 1,250 if your basic pay is Rs. 15,000.
• If your basic pay is less than Rs. 15,000, 8.33% goes to this scheme, and the rest is kept in the EPF account.
• When you retire, you receive your share from this scheme, while the employer’s share is added to your EPF account.

Documents Needed to register for  Employee Provident Fund  Registration

Personal Information:

• PAN card of the Owner, Partner, or Director.
• Aadhar card of the Owner, Partner, or Director.
• Cancelled Cheque or Bank Statement.

Business Information:

• Address proof (like a recent utility bill).
• Hired/Rented/Leased Agreement (if applicable).
• Digital Signature of the Owner, Partner, or Director.

Details About Your Business:

• Name and address of your establishment.
• NOC (No Objection Certificate) from your landlord if you rent the place.
• Date when your establishment was incorporated.
• If it’s a factory, provide details like the License Number, Date of License, and Place of issue.
• If your business is registered as an MSME, give your MSME registration details.
• List of directors/partners/owners.
• PAN Card and Aadhaar Card copies of owners/partners/directors.
• Digital Signature Certificate of owners/partners/directors.
• List of employees and their information.
• Details of a contact person (e.g., a manager).