What is EPF Registration?
Employees Provident fund is basically a retirement benefit or to secure the employee in case of unemployment, old-age, sickness etc which is available at all the employees. You can do EPF Registration through Corpbiz easily.
In case of Employer: It is applicable to the company where employee including the contractual employee is equal to or more than 20 employees except apprentice and casual labor.
Employee’s emoluments exceed Rs. 6500/- Per month, after the consent with the employer.
EPF is maintained and regulated by Provident Fund Organization of India (EPFO) and company having above 20 employees needs EPF Registration.
There are three schemes in operations
- Employees' Provident Fund Scheme, 1952: It is a saving scheme where employee gets the accumulated contribution amount at the time of retirement. (or earlier-for specific events).
- Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971): is a monthly pension payable to employees on their superannuation or death or permanent disability
- Employees' Deposit Linked Insurance Scheme, 1976: provides assurance benefit upon death of employee while in service.
Universal Account Number
UAN is allotted to each employee at EPF Registration. It is universal Account number and it does not change with the change in job. Employee does not have to obtain more UAN.
Linkage of UAN with Aadhar:
As the Aadhar is now the most valid source for the linkage in India, if we link Aadhar with UIAN, we did not need to get the documents attestation from the employer for the purpose of transfer & withdrawal and it enables the member to perform various functions with the linkage of Aadhar.
Contribution in EPF Registration Account
In EPF Registration Contribution of Employee is 12 % of their basic salary & the same amount is contributed by the employer.
Compulsory for all the employees
Employees who are drawing basic salary up to Rs.15, 000 have to compulsory contribute to Provident fund by EPF Registration and employees drawing above Rs. 15,000 have an option to become the member of Provident fund.
Calculation of EPF
For Employees’ who’s basic is less than or equal to Rs. 15,000 per month
- 8.33% of the employee’s basic to the Employees’ Pension Fund Scheme
- 3.67% of the employee’s basic to Employees’ Provident Fund Scheme
- 0.5% of the employee’s basic to EDLI
For Employees’ who’s basic is more than Rs. 6,500 per month:
- 12% of the employees’ basic to the Employees’ Provident Fund Scheme less Rs. 541 per month
- Rs. 541 to Employees’ Pension Fund Scheme (being 8.33% of employee’s basic subject to a maximum of Rs. 6,500)
- 0.5% of the employee’s basic (subject to a maximum of Rs. 6,500 p.m.) to EDLI”
Contribution of Employer in the EPF is tax free whereas the employee contribution is tax-deductible under section 80C of the Income tax Act but if an employee withholds the amount in the EPF registration account for 5 years then there is no tax payable on Income and Interest.
Procedure for withdrawal of P.F. & Pension money
If an employee resigns from the service and will not further join any service, then employee has to fill Form 19 & 10C and submit the same to the PF Desk, which then shall submit to the PF registration office after two months, there is a gap of two moths because as per the rules employees don’t have to join any other organization within 2months of resigning from the previous office.
Death of an employee
In case the employee has filed a nomination form, settlement is made according to the last filed nomination form on record. In case no nomination has been filed, the accumulated balance is divided equally among the following family members in equal shares.
- Sons who have not attained majority.
- Sons of a deceased son who have not attained majority.
- Married daughters, whose husbands are not alive.
- Married daughters of a deceased son, whose husbands are not.
Ministry of labour and employment has amended the guidelines of Pradhan Mantra Rojgar Protsahan Yojana (PMRPY) in the memorandum, dated April 12, 2018.
Employer’s contribution both EPF and EPS shall be borne by the Government of India with effect from 01.04.2018 till the period of three years to the new employees and existing beneficiaries for the remaining period of three years through EPFO. The terminal date of registration of beneficiary is 31st March, 2019 whose salary is less than 15,000 P.M.
Earlier in Pradhan Mantri Rojgar Protsahan Yojana, Government was contributing 8.33 % to the Employee’s Pension scheme for the new employees who have joined after April 01,2016having a new UAN and salary upto Rs.15,000 Per month.