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Get EPF Registration in India

The Employees’ Provident Fund Organisation (EPFO) manages the Employees’ Provident Fund (EPF) in India, established by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Any establishment or Indian business that employs at least 20 employees is eligible to apply for PF registration in India. In certain cases, establishments with fewer than 20 employees may still be eligible for EPF registration in India, subject to the requirements and exemptions. Upon retirement or resignation, the employee earns an amount that includes interest and the employer’s contribution share.

What are the objectives of EPFO?

On 15th November, 1951, the Employees’ Provident Funds Ordinance came into effect, establishing the EPFO. The Employees’ Provident Funds Act of 1952 took its place. It is a non-constitutional organisation that encourages workers to save money for retirement. The Indian government’s Ministry of Labour and Employment supervises EPFO management.

 

The goals of EPFO in India are as follows:

Applicability of EPF Registration for Companies/Businesses

If the employer in India fails to register the Employee Provident Fund (EPF) within one month of reaching strength, they will face monetary penalties. Even if any employee resigns or exits from the establishment, then  number of employees falls below the mandatory threshold; the Act still covers an established company. The Central Government of India’s regulations may apply to any business with fewer than 20 employees, provided they receive at least two months’ notice to register. Suppose the majority of employees and the employer agree that the establishment should be subject to the terms of this Act. In that case, they may submit an application directly to the Central PF Commissioner for Voluntary PF Registration.

The Commissioner may apply the Act’s provisions to that establishment after publishing the notice in the official gazette, either on the agreement date or on a specific date specified in the agreement.

All employees will be eligible for a provident fund during their employment, and the employer will be responsible for deducting and paying the fund. Both the employer and employee should pay the 12% PF contribution equally. The employer contributes twelve percent of the base salary. 10% of the PF deduction applies to a business with fewer than twenty employees.

What are the benefits of EPF Registration in India?

The advantages of EPF registration in India are as follows:

Risk Coverage

One of the primary advantages of EPF registration is that it provides coverage for potential risks associated with illness, death and retirement for both employees and their dependants.

Pension Coverage

To ensure the employee qualifies for a monthly pension upon retirement, the employer contributes 8.33% (maximum Rs. 1250/-) of the employee’s PF wages (maximum up to Rs. 15000/-) to the pension fund. EPFO guaranteed pensioners to pay a minimum of Rs. 1000 in pension per month.

Need in Emergency

The Provident Fund amount can be extremely beneficial in situations where you need quick financial assistance due to unforeseen events like marriage, education, accidents or illnesses.

EDLI Insurance Scheme

The Employee Deposit-Linked Insurance Scheme (EDLI) enrolls all PF account holders. For this life insurance coverage, the employer contributes 0.5% of the employee’s maximum earnings, up to Rs. 15,000. The policy provides life insurance to the employees and grants a maximum of Rs. 7 lakh to their dependents.

Good Interest on Savings

EPFO offers the highest interest rate, approximately 8.5%, on PF funds saved in their account for long-term savings, empowering employees to make life decisions without worrying about the future.

Uniform Account (UAN)

When changing jobs, the Provident Fund and Pension Fund account is stable and easily transferable, ensuring continuous retirement savings. This portability allows seamless management of funds throughout a career of any employee.

Eligibility for EPF Registration under EPF & MP Act 1952

The Employees Provident Fund Organisation (EPFO) manages the Employee Provident Fund (EPF), which is the primary method by which employees in India save for their retirement. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, outlines who is eligible to join.

Employee :

The EPF & MP Act,1952 mandates that during joining any establishment, any employee whose salary is Rs. 15000 or less must be enrolled under the PF Scheme and EPS Scheme without any condition and their contribution is to be deposited every month during their service period; if their monthly salary is above Rs. 15,000, then they are exempt from making PF contributions. They still have the option, though, to enrol in the Employee Provident Fund (EPF) and start contributing with the help of the Assistant PF Commissioner and the employer agreement. However, as of September 1, 2014, they cannot enrol in the Pension Scheme (EPS).

Employer :

The EPFO insures EPF registration for establishments in accordance with Sections 1 (3)(a), 1 (3)(b), 1(4), and 16 (1) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

The details of Organisation or Business required for PF Registration

The list of all required documents for EPF registration are as follows:

Procedure followed by Us for EPF Registration

Step 1 :

Initially, a professional from our team will advise you on all the documents required for PF registration according to the identity of your business or company formation. After that, you will provide us with all the information and documentation needed for your EPF registration.

Step 2 :

Next, select the package that best meets your needs, purchase an additional registration under any other acts, and make your online payment using one of the safe and convenient options available.

Step 3 :

Once you submit your request, we will assign an expert to your application to complete the PF registration process effectively and seamlessly.

Step 4 :

After that, our professionals will draft the necessary EPF registration documents and submit the final application on the online portal for PF Code allotment.

Step 5 :

EPF Department will verify the submitted application and documents. Once they are satisfied, they will issue a PF Code and login credentials to your Business or Company.

Step 6 :

Once everything is complete, our team will download the PF code allotment letter from the PF portal using your login credentials and send it to you.

What are the PF withdrawal rules and regulations following EPF registration?

EPFO established some conditions, criteria and procedures for withdrawing amounts from the PF account after resignation. Under the regulations, employees who have been unemployed and have not joined any company after resignation for at least two months can withdraw the entire balance from their Provident Fund Account. This implies that an individual who tenders their resignation may withdraw the entire balance from their account after two months of their final day of employment.

An employee must fulfill several limitations and conditions to withdraw the full balance of the Provident Fund (PF) account. One crucial condition is that the employee must have worked for the last or current company or in multiple companies for a minimum of five years overall. This indicates that the employee’s PF member service tenure must be at least five years, either in a single company or in total across multiple companies. If an employee withdraws before five years of service, they must pay taxes on both the principal amount they and their employer contributed, as well as the interest they earned. This significantly reduces the amount you receive. However, the employee may apply for PF advance withdrawal for a specific amount as per the PF Act’s requirements, conditions and criteria.

Exemption from EPF registration in India

Employee Limit Exemption

This exemption applies to establishments with less than 20 employees. As long as the number of employees remains below 20 throughout the year, the employer is not required to obtain PF registration for the company.

Note : The company must register for PF from the effective date if the number of employees reaches 20 on any given day.

Employee and Employer opting out of PF due to existing benefits

Businesses with 20 or more employees are exempt from this condition. If all employees express in writing their desire to opt out of PF coverage, employers can avoid making EPF contributions. However, their employer must ensure that other benefits are at least as good as or better than those provided under EPF & MP Act, 1952.

Statutory Compiance after PF Registration

The following are some regulations that must be performed in routine:

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