Employees Provident Fund (EPF) is a scheme which is governed by the Employees Provident Funds and Miscellaneous Provisions Act, 1952. EPF revised KYC details of 73.58 lakh customers so that they could gain access to its online services. It is controlled under the purview of the Employees' Provident Fund Organization (EPFO) which is one of the world’s largest social security organisations in terms of the clientele and the volume of the financial transactions undertaken. In general, EPF is a benefit provided to an employee during retirement by the organisation.

Companies that have the strength of 20 employees or more should register themselves according to the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Co-operative societies should register if the strength of employees is 50 or more than that. The Central Government can also make it mandatory for organizations with less than 20 employees to contribute towards the EPFO by giving them a two-month notice. Voluntarily, organizations with less than 20 employees can also contribute towards the EPF. The employer and the employee each contribute 12% of the employee’s basic salary towards the EPF. If the Employees Provident Fund Organisation has less than 20 employees, 10% should be contributed instead of 12%.

Why is It Important for an Employer to Register for EPFO?

EPF (Employee Provident Fund) registration is mandatory for all employers who have at least 20 employees. There are several reasons why employers need to register for EPF.

1. Firstly, registering for EPF helps in providing social security benefits to employees. It is a retirement savings scheme that allows employees to save a portion of their salary every month towards their retirement. EPF also offers benefits such as disability, illness, and death benefits to employees and their families. By registering for EPF, employers can ensure that their employees have access to these benefits and can save for their future.
2. Secondly, registering for EPFO helps in compliance with the law. It is a legal requirement for employers to register for EPF, failing which they may face penalties and legal action.
3. Thirdly, registering for EPF helps in attracting and retaining employees. Employees value benefits such as EPF, and registering for EPF can help employers attract and retain quality talent. This is especially important in today’s competitive job market, where employees are seeking good salaries and benefits that can help them achieve their financial goals.
4. Lastly, registering for EPF also helps in providing financial security to employees in the event of unforeseen circumstances such as disability, illness, or death. EPF allows for partial or full withdrawal in certain circumstances, which can be a valuable safety net for employees and their families.

Objectives of Employees Provident Fund Organisation

The Employees Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India. Its main objectives are as follows:

1. Promote Savings for Retirement: The EPFO encourages employees to save for retirement. It provides a platform for employees to contribute a part of their salary towards their provident fund account, which can be withdrawn upon retirement or resignation.
2. Provide Social Security: The EPFO provides social security to employees in the organized sector by providing them with a retirement benefit, pension, and life insurance cover. This helps employees and their families cope with financial difficulties in the event of their death or retirement.
3. Extend Coverage: The EPFO aims to extend the coverage of its schemes to as many employees as possible. It provides benefits to all employees who work in establishments that have 20 or more employees.
4. Efficient Management of Funds: The EPFO aims to efficiently manage the funds it receives from employees and employers. It invests these funds in various financial instruments to generate returns and ensure the long-term sustainability of the schemes.
5. Enhance Transparency and Accountability: The EPFO aims to enhance transparency and accountability in managing the funds and schemes it offers. It regularly updates its members on their account balances and the status of their claims. It also uses technology to streamline processes and reduce delays.

Get instant calculations with our PF calculator online. Our EPF calculator ensures you stay on top of your savings.

Schemes Offered Under the Employees Provident Fund Organisation

1. Employees Provident Fund Scheme 1952 (EPF): This is the flagship scheme of the EPFO and provides a retirement benefit to employees in the form of a lump sum payment at the time of retirement or resignation. The employer and employee contribute 12% of the employee’s basic salary plus a dearness allowance towards the EPF account.
2. Employees Pension Scheme 1995 (EPS): This scheme provides a pension to employees who have completed at least 10 years of service. The pension amount is calculated based on the employee’s average monthly salary and the number of years of service. The employer contributes 8.33% of the employee’s basic salary and dearness allowance to the EPS account.
3. Employees Deposit Linked Insurance Scheme 1976 (EDLI): This scheme provides life insurance cover to employees who are members of the EPF and EPS schemes. The insurance cover equals 30 times the employee’s average monthly salary, subject to a maximum limit of ₹7 lakhs. The employer contributes 0.5% of the employee’s basic salary towards the EDLI account.
4. Atal Pension Yojana (APY): This is a government-backed pension scheme for unorganized sector workers who are not covered by any statutory social security scheme. Under this scheme, workers can contribute towards their pension account and receive a pension after 60.
5. Employees Provident Fund Scheme for Housing (EPFHS): This scheme allows EPFO members to withdraw a portion of their EPF balance to purchase or construct a house or flat. The amount that can be withdrawn is limited to a maximum of 90% of the employee’s EPF balance.

Applicability of EPF Registration for Employers

EPF Registration is applicable for all establishments that employ 20 or more persons, as well as certain establishments with fewer than 20 employees, based on their type of business. 

The registration process involves the following:

1. Obtaining an employer identification number.
2. Registering the establishment with the EPFO.
3. Obtaining an allotment letter.

Once registered, the employer is required to contribute a percentage of their employees’ salaries to the Employees’ Provident Fund.

Types of Employees Provident Fund Organisation Claim Forms

1. Form 19: This form is used to withdraw the accumulated balance of the EPF account by the member after resignation or retirement from service.
2. Form 10C: This form is used to withdraw the amount accumulated in the EPS account by the member after leaving the job before completing ten years of service.
3. Form 31: This form is used for the partial withdrawal of funds from the EPF account. Members can use this form to withdraw funds for purposes like medical treatment, house renovation, marriage, education, etc.
4. Form 13: This form is used to transfer the EPF balance from one account to another. Members can use this form to transfer the balance from their old EPF account to a new one in case of a change in employment.
5. Form 14: This form is used to make a nomination for the EPF account. Members can nominate one or more persons to receive the EPF balance in case of their death.
6. Form 20: This form is used to claim the EPF amount by the nominee or the legal heir of the member in case of the member’s death.

Documents Required for Employees Provident Fund Organisation Registration

Employers should furnish certain documents as proof for successfully registering EPF such as-

1. 1. A copy of the partnership deed if the company is a registered partnership firm.
   2. A copy of the certificate of incorporation for a public or private limited company. This certificate should be issued by the Registrar of Companies (RoC).
   3. Societies must furnish a copy of the registration certificate.
   4. Public and private limited companies should submit a copy of the Memorandum of Association and Articles of Association.
   5. Societies must furnish a copy of the objects and rules of the society.
   6. All the legal documents which are necessary under the Income Tax Act.
   7. PAN details of the company.
   8. Partition deed.
   9. Proof of incorporation.
   10. Salary Details of the employees.
   11. Balance sheet details.
   12. PF statement and salary.
   13. The number of employees who have worked for the organisation for the month.
   14. If the organisation has registered for GST, the certificate should be submitted.
   15. First sale bill.
   16. Cross cancelled the cheque.
   17. Bank details such as name, IFSC code, branch and address of the bank.
   18. Raw material and Machinery purchased for the first time.

Here are the Steps for Employees Provident Fund Organisation (EPFO) Portal Login

• Visit the EPFO website www.epfindia.gov.in

• Click on the “For Employees” option on the homepage’s “Our Services” section.
• Select “Member UAN/Online Services” from the drop-down menu.

• You will be redirected to the Unified Member Portal.
• Enter your Universal Account Number (UAN), password, and captcha code.

• Click on the “Sign In” button.
• Once logged in, you can access your EPF account, check your account balance, download your passbook, and update your KYC details.

Conclusion

Employees Provident Fund Organisation (EPFO) – Until the end of the financial year 2017-18, the interest rate on the EPF was 8.55 percent. In terms of the returns from a debt instrument, EPF generally stands tall. The money is sovereign-backed and the interest earned is tax-free. In fact, it enjoys the exempt, exempt, exempt (EEE) status as the contributions are deductible from income. Therefore, it is better to transfer the PF account during the time of switching jobs and avoid withdrawing the amount.

FAQs

What is Form 5?

Form 5 is a monthly report that employers must file with the Employees Provident Fund Organisation (EPFO) to report new employees, leaving employees, and changes in employee details.

What is excluded from wages under EPF?

Certain items, such as overtime pay, bonus payments, and reimbursements, are excluded from wages under EPF.

Why should an employer register the establishment at the EPFO portal?

Registering the establishment on the EPFO portal is necessary to contribute to the Employees' Provident Fund, which provides retirement benefits to employees.

How to resolve the error messages that appear while registering the establishment?

To resolve error messages during the registration process, the employer should carefully review the information entered and ensure that it meets the requirements.

What should the employer do in case they have forgotten User ID and password?

In case of a forgotten User ID and password, the employer should click on the “Forgot Password” option and follow the instructions to reset the login credentials.

If an employer or authorised signatory has multiple establishments, should he obtain registrations for all the establishments?

Yes, an employer or authorized signatory must obtain registrations for all establishments under their control that employ 20 or more persons.

How can the employer modify the details post registration?

After registration, an employer can modify establishment details by logging into the EPFO portal and selecting the “Modify Basic Details” option.

During the registration process, if the PAN is requested, which number must be entered?

If PAN is requested during the registration process, the employer should enter their own PAN number.

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