PF Registration

Employee Provident Fund

Employees Provident Fund is a scheme for the Indian Employees that is controlled by the Provident Funds and Miscellaneous Provisions Act,1952. The Employee Provident Fund is regulated under the umbrella of Employees Provident Fund Organization popularly known as EPFO.

All establishments that have employed 20 or more than 20 employees can apply for PF registration in India. In some cases subject to the circumstances and the exemption establishments employing less than 20 are still eligible for PF registration. The Employee gets an amount that includes the self and employer’s contribution with interest on retirement or resignation.

PF Registration is mandatory for all the establishments-

  1. That has engaged 20 or more than 20 people.
  2. For any other establishment that has less than 20 people then the central government has to specify the same in the notification on the behalf.

Employee

Employees drawing less than Rs.15000 per month need to mandatorily become members of the EPF. According to the guidelines, employees whose basic pay is more than Rs. 15000 a month at the time of joining are not required to make any PF contributions.

But an employee who is drawing pay of more than Rs.15,000 can still be a member and make contributions with the employer and the Assistant PF commissioner.

The amount for the contribution of PF

The employer has to obtain the PF registration within 1 month of attaining the strength, in case of failure to abide by applicable penalties. A registered establishment continues under the purview of the Act even in case the No of employees falls below the required limit.

The employer has to contribute 12% of the (Basic Salary + Dearness Allowance + Retaining Allowance). An equal amount of contribution is to be made by the employee. If the establishment has engaged less than 20 employees the EPFO rules state that the contribution rate for both the employees and the employer is limited to 10 %. In most cases the employees who are employed in the private sector it is on the basic salary on which the whole contribution is calculated.

The breakup of the PF contribution

The 12 % contribution is divided into the following subdivision:

  1. 3.67% of the contribution towards the Employees Provident Fund
  2. 1.1% of the contribution towards the EPF administration Charges
  3. 0.5% of the contribution towards the employee’s deposit linked insurance
  4. 0.01% contribution towards the EDLI administration charges
  5. 8.33% towards the Employees Pension Scheme.

Employees Pension Scheme

8.33% of the employer’s contribution is routed towards the Employees Pension Scheme that is calculated at Rs.15,000. The amount routed to the Employee Pension Scheme would be Rs.1250 in case the basic pay of the person is Rs.15,000. If the Basic Pay is less than Rs.15,000 then 8.33% of the amount will be routed and the balance will be retained in the EPF scheme. On superannuation, the employee would receive the full share with the employer’s share reserved for credit in the EPF account.

Documents Required for Registration

  1. PAN of the Partner, Proprietor, or the Director
  2. Address proof (can be any utility bill but should not be older than 2 months)
  3. Aadhar card of Proprietor, Partner, or Director.
  4. Canceled Cheque Or Bank Statement
  5. Digital Signature of the Proprietor/ Partner or Director.
  6. Hired/ Rented or Leased Agreement If there is any.

PF Return Filing

The employers that have PF registration have to file the PF returns monthly. The PF return filings are to be completed by the 25th of each month. Here we will talk about the various forms used for PF return filing in detail. The employers can easily file the PF return through the Unified portal.

IEPF Form 2

Form 2 is filed as a declaration and nomination under the Flagship scheme of the Employment Provident Fund and the Employment Family Pension Scheme. Form 2 must be filed by the employees who are joining the establishment. This form is to be submitted with Form 5. Form 2 is divided into 2 different parts.

Part A

Part A of Form 2 deals with nominating the recipients of the EPF balance of the particular account holder, in the event of his or her death. This part of the form must include the following details:

  1. Name
  2. Address
  3. Relationship with the subscriber
  4. Age
  5. Sum of the money that is to be paid to the nominee
  6. Guardian Details ( In case the nominee is a minor)

This Part has to be signed or needs to have a thumb impression to be made at the end of the section.

Part B

The details of the nominee as already mentioned in Part A should also be included in Part B. Additionally, the details of the members who are eligible to receive the children/ widow pension must be furnished.

This Part again must be signed duly or a thumb impression has to be made at the end of the section.

Form 5

Form 5 is a monthly report that contains the details of the employees who are newly enrolled in the provident fund scheme. Form 5 must include the following details:

  1. Organization’s Name
  2. Address of the Organization
  3. Code of the organization
  4. Account number of the Employee
  5. Name of the employee
  6. Middle Name (Husband/Father)
  7. Date of birth of the employee
  8. Date of joining
  9. Track record of the work.

The form is to be filed and stamped by the employer with the date of filing mentioned on it.

Form 10

It is a monthly report that includes the details of the employees who have ceased to be a part of the scheme on the given month. Form 10 includes the following details.

  1. Account Number
  2. Name of the employee
  3. Name of the father or the husband
  4. Date of leaving the service
  5. Reason for leaving service.

Form 10 must be filed and stamped by the employer with the filing date of the form.

Form 12A

This Form 12 A is a report that contains the payment details that are contributed to the account of the respective employee in a particular month.