What does Employee Provident Fund Registration mean?
To provide social advantages to the employees of the organization, under Employee Provident Fund and Miscellaneous Provisions Act, 1952 which is regulated by the Employees Provident Fund Organization (EPFO).
Employee Identification number (EIN) is to be obtained by the establishments where there are more than 20 employees in an establishments. Establishment can voluntarily apply for Employee Identification number (EIN) in case the strength of the employees do not exceeds 20 in number. Every establishment is required to obtain certificate of Employee Provident Fund registration within 30 days from the date it employs 20 employees. Contractors or temporary employees like housekeeping staff, daily wage worker security or other temporary workers in the establishments are to be counted in the total strength of the establishments.
Who all are eligible to get registration under Employee Provident Fund?
Registration becomes compulsory for the following establishments
- 20 or more persons employed in any industry or factory.
- 20 or more persons engaged in any other establishments or establishment which is specified by the Central Government to obtain registration under Employee Provident Fund (EPF).
Central Government who make it compulsory for establishments to obtain PF registration even they have employed less than 20 employees are required to provide notice which shall not be less than 2 months. In order to make the provision applicable to the establishments, Employer as well as majority of employees may voluntarily request to the Central Provident Fund (PF) Commissioner for the same. Notification in the Official Gazette regarding the same shall be issued by the Central Provident Fund (PF) Commissioner. From the date of their employment, employees will be eligible for a provident after successful registration. Deduction and making payment of the Employerâ€™s Provident Fund is the primary responsibility of the employer. Equal contribution of 12% by the employer and employee shall be made for the Provident Fund.
Employer's contribution = 12% of Basic Wages + Dearness Allowance (DA) + Retaining Allowance.
The deduction rate will be 10%, in case of fewer than 20 employees.
Which documents do I need to submit for registration of Provident Fund?
For Provident Fund registration, following documents are required to be submitted:
- Firm/Company/Society/Trust's PAN (Permanent Account Number) Card Copy
- Cancelled cheque Copy (mentioning pre-printed company/firm name & Current Account No).
- In case of Partnership Firm, Partnership Deed is required
- In case of Proprietorship/ Partnership/ Company / LLP, Registration certificate is required.
- In case of company/ society, trust/ NGO, Incorporation Certificate is required
- Directors / Partner's PAN (Permanent Account Number) Card Copy
- Director's Aadhaar Card/ Voter identity card Copy
For EPF registration, following below mentioned need to be followed
Step 1: Registration with Employee Provident Fund Organization (EPFO)
First you have to visit the website and select the option of Establishment Registration in their unified portal.
Step 2: Read the User Manual
In case you are a new user, you need to read the instructions very carefully before preceding the registration process as after clicking the Establishment Registration you will get the â€œInstruction Manual.
Step 3: Registration of Digital Signature Certificate
Digital Signature Certificate is mandatory for fresh registration of Employee Provident Fund. By using credentials like Universal Account Number [UAN] and password, registered employers can log in into the portal.
Step 4: Employer's Details Filling
Once clicking on the Register Button after reading the instruction carefully you will get on the next page and there you have to fill the employer's details. All the details must be correctly and updated filed.
Do You Have Any Questions?
The employee & employer are required to contribute 12% of the basic salary of the employee.
Yes, the contribution shall be made to the provident fund by the every person employed in factories or in any establishments irrespective of their wages and type of employment.
Following persons are not to be counted:
- A proprietor or a partner
- A contractor lending the services of his employee
- Under the Apprentice Act, 1961, any apprentice who is engaged
- Persons engaged for professional service legal, technical, tax consultants etc.
Accessing the account statement of Employee Provident Fund can be done by the members through online mode too.
Yes and contributing more than 12% in Employee Provident Fund account is called ‘voluntary contribution’.