Employee Provident Fund (EPF) is an employee benefit provided by his/her employer which supports the employee after retirement. For providing EPF to employees, employers need to get registered.
This article covers the following topics:
Employee Provident Fund (EPF) Scheme was regulated by the EPF Organization (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for every establishment which is:
- A factory involved in any industry which has 20 or more individuals, and
- Employing 20 or more individuals, or any class of such establishment which the Central Government may have specifically notified in this behalf.
Any establishment which is employing less than 20 individuals may be applied by the Central Government after providing at least two months’ notice for compulsory registration.
In cases where the employer, along with the majority of his employees, has decided to make provisions of the Act applicable to the establishment, they may apply the establishment to the central PF Commissioner themselves. The provisions of the Act may be applied to the establishment after the Central PF Commissioner notifies the Official Gazette from the agreement date or any date which the agreement specifies.
PF registration may also be required to be obtained by certain establishments with less than 20 employees, but such registration will be voluntary. Every employee of the establishment will be eligible for EPF from the date of their employment. The employer will be responsible to deduct and pay the EPF to his employees.
The rate of EPF contribution at 12% will have to be divided between the employee and the employer equally. The contribution of the employer will include 12% of basic wages with additional dearness allowance and retaining allowance. In case the establishment has less than 20 employees, it will deduct EPF at a rate of 10%.
The documents required for EPF registration of different establishments are as follows:
- Sole Proprietorship: Applicant’s name, PAN, driving license/passport/voter ID, address proof for premises, residential address proof, and phone number.
- Society or Trust: Incorporation certificate, MOA & by-laws, PAN, and address & identity proof details of president and members.
- Partnerships: Registration certificate of firms, deed of partnership, identity proof of partners (driving license/passport/voter ID), and address & identity proof details of all partners.
- LLP or Company: Incorporation certificate, list of directors or Partners, identity proof of directors or Partners, DSC of directors or Partners, MOA & AOA, and address proof of directors or Partners.
- Employees: Employee’s name, father’s name, joining date, birth date, mobile number, postal address, nominee name, salary grade, designation, identity proof (Aadhaar/PAN), bank account number & IFSC code, voluntary application employee details, agreement date, and signature.
- Other establishments: First sale and purchase bill, GST registration certificate, bank account details, a record of monthly strength of employees, register of all wages/salary, all vouchers &balance sheets from day one, EPF statement &salary, and cross-cancelled cheque.
For employers’ EPF registration, the following steps need to be followed:
Step 1 – Go to the EPFO website and register your organization under ‘Establishment Registration’
Step 2 – Upon clicking ‘Establishment Registration’ you will be given an ‘Instruction Manual’ which you should download and read before proceeding.
Step 3 – In case you are already registered, log in with your UAN and password. Read the instruction manual to know the procedure for employer registration and DSC registration. Digital Signature Certificate (DSC) registration is required for a fresh ERF registration.
Step 4 – Tick the declaration and click ‘Register’.
Step 5 – Fill the employer’s details.
- Enter the employer’s name exactly as is furnished with the Income Tax Department or else the application may be rejected.
- Enter the PAN of the employer. A message showing that employer is unregistered will be displayed. Once PAN is verified, the online registration will be permitted.
Step 6 – Select a Username which is available
Step 7 – Select a hint question and a hint answer for your password. Enter the captcha code and click on ‘Get PIN’.
Step 8 – You will receive the PIN on the registered mobile number. Enter the PIN and tick the declaration box
Step 9 – You will receive an e-mail verification link on the registered e-mail id. Click this link to submit the online EPF registration application of the establishment.