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Provident Fund

Who Is Eligible For PF Registration? Your Complete Guideline

Employees’ Provident Fund scheme is mandatory for all organisations executing business operations in India with minimum workforce strength of 20 employees. The PF registration process is now completely online. To read and learn about your EPF eligibility as an employer, read this blog.

EPF, or Employee Provident Fund, is a program devised by the Indian Central Government under the EPF and Miscellaneous Provisions law (1952). PF registration came into force in 1951; this facility is available all over India, excluding Jammu and Kashmir. Employee’s Provident Fund has been recognised as one of the best investment mechanisms for all salaried working professionals. The Indian government has started Registration of PF and declared it mandatory by stipulating particular conditions. Let’s know who is eligible for registration of PF in this blog.

The long-term objective of the Government was to cultivate the practice of saving for each worker who is at present employed in a public or private firm. The same approach is maintained for those employed in offices undertaken by the Central or State government.

If you’re an leader with a company that employs twenty folks or more, it’s obligatory for you to register under the EPF scheme. If your organization employs not up to 20 people, you’ll still prefer to register under the scheme.

Applicability of Employees’ Provident Fund

Eligible for Registration of PF is compulsorily recommended for:

  • Any factory or manufacturing plant commercial employs twenty or more workers and staff.
  • Any establishment with at least 20 or more professionals during the previous year.
  • Every employee whose monthly salary is less than ₹ 15,000.

Every employee hired by any institution entitled to the EPF scheme has no choice but to contribute a substantial portion of his monthly salary. Contributions are demanded at regular intervals. The contribution furnished by staff is collected in an account intended for saving. Otherwise, this money is invested in the market. The cumulative principal value and the tax surplus are credited to the person concerned in their retirement. These funds can also be transferred if that person switches his current job position for a better career opportunity.

Contribution needed for EPF

The employer must contribute 12% of the cumulative amount derived by adding the following elements of the salary structure: (Basic pay + retaining allowance + Dearness allowance). The employee is even required to contribute the same margin in terms of percentage. If your business recruits less than 20 professionals, the contribution rate drops to 10%. Again this is true for both the employer as well as the employee. Here the major catch is that there are Eligible for Registration of PF prerequisites to be met based on the EPFO guidelines for this amendment to be applicable. 

Creating a safety net for your team. Explore Online PF Registration!

Employees’ pension scheme as designed by the Indian Government gets funded with 8.33% of the worker’s contributed EPF submission (10% or 12% of their monthly wages). However, this calculation is based on a salary of ₹ 15,000 or more. Therefore for every professional getting an in-hand salary of ₹ 15,000 or more, the EPS account of that particular individual gets credited with Rs. 1250 every month. On the other hand, if the basic sum happens to be less than ₹ 15,000, we witness 8.33% of the entire salary getting shifted into the EPS. The EPF account is filled with the remaining balance. Once the worker retires, the employer pays him the entire money saved in the EPF account along with the total share stored in his EPS profile.

Employer: Who Is Eligible For Registration of PF?

Eligible for Registration of PF, If an employer resorts to employing no more than 20 employees to run his business, then he will be exempted from Eligible for Registration of PF. This rule also becomes active when the majority of the professionals within the organisation voice their approval for exemption. Suppose the latter scenario happens to be true. In that case, you as an employer may still be subjected to definite conditions where the government will ask you to undergo various formalities. When a group or an individual receives PF perks that are as good as statutory provisions, then the employer may request for exemption via Form 1.

Contribution Rate For Employers Recruiting Less Than 20 Professionals

Based on the EPFO norms, the establishments working with less than 20 staff need to grant EPF at 10% of in-hand wages along with a dearness allowance.

This is applicable for:

  • Offices with only ten workers or even less than that
  • A firm that has incurred heavy financial loss at the ending of the previous financial year
  • Some highlighted sectors of the manufacturing industry like a brick factory, beedi factory, gum factory and jute factory.

Use Vakilsearch’s EPF Calculator to find out how much money you have left in your EPF account before you retire.

How To Redeem The EPF Amount?

Staff can redeem the accumulated money from his EPF account once he reaches 55 years of age or at retirement. The employee is eligible to withdraw the entire income from the EPF account through EPF form 15g; this includes monthly contributions from his employer. The employee may redeem the whole sum from his EPF account before reaching 55 years of age. He must not be active in employment status for two months.

The withdrawal procedure has been simplified as the entire method can be executed online. We have jotted down the sub-processes step by step to help you redeem your EPF balance online without encountering any hassle:

  • Visit the genuine web page of EPFO: unified 
  • Sign in by using your password and the UAN code that has been assigned to you.
  • The foremost duty after a successful login is to check the KYC specifications, which are already provided at the online portal.
  • Navigate to the ‘Online Services’ option and choose ‘Claim (Form 31,10C & 19)’ from the dropdown box.
  • Carefully enter your registered bank account’s last four numbers by choosing the ‘member’s detail’ option and selecting ‘verify’ to approve all the bank-related inputs.
  • Now you must sign the issued certificate of the undertaking.
  • Proceed to submit the withdrawal application form online.
  • Now the EPFO scrutinises the bank particulars against the KYC documents. The administration processes the request for EPF money, and the payment gets sanctioned within 10-15 days, after which the transaction is directed to the registered bank account.
  • Staff may use this government-supervised online facility for redeeming the employee’s provident fund only when his Aadhar ID is connected to his Universal Account Number.

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

Registering for EPF is crucial for employers due to several reasons:

  1. TDS Deduction: EPF registration is essential for employers as TDS is deducted from employees’ salaries. Employers need to go through the EPFO employer portal to generate challans and process remittances.
  2. Risk Coverage: The primary benefit of the Provident Fund is to provide coverage for risks associated with retirement, illness, or death for employees and their dependents.
  3. Uniform Account: The Provident Fund account is consistent and transferable, allowing employees to transfer it to any other place of employment.
  4. Employee Pension Scheme (EPS): EPS is available to all PF account holders. It involves deducting a pension amount at the rate of 8.33% of up to Rs.15,000 from the employer’s contribution, providing a monthly pension to an employee after reaching 58 years of age.
  5. Long-term Goals: Accumulated PF amounts can be useful for fulfilling long-term goals such as marriage or higher education, providing immediate access to funds when needed.
  6. Emergency Needs: In the face of unexpected events like family gatherings, mishaps, or illnesses, the PF amount can serve as valuable financial assistance, providing immediate relief.

Documents Required For EPF Registration 

  • PAN Card of the Proprietor/Partner/Director
  • Proof of address 
  • Aadhaar Card of Proprietor/Partner/Director
  • Shop and Establishment Certificate/GST Certificate
  • Digital Signature of the Proprietor/Partner/Director.
  • Cancelled Cheque or Bank Statement of Entity
  • Hired/Rented/Leased Agreement, if any
  • License Proof issued by the Identifier/Licensing Authority

EPF Charges 

  • Employee contributions, pension contributions, and EDLI contributions are rounded to the nearest rupee for each employee.
  • The employer’s share is calculated as the difference between the employee’s share and the pension contribution.
  • EPF administrative charges are rounded to the nearest rupee, with a minimum monthly payment of Rs.500. If there are no members in the establishment for the month, the minimum administrative charge is Rs.75.
  • EDLI administrative charges are rounded to the nearest rupee, with a minimum monthly payment of Rs.200. If there are no members in the establishment for the month, the minimum administrative charge is Rs.25.
  • Establishments exempted from PF scheme inspection charges (0.18%) must pay a minimum of Rs.5 in lieu of administrative charges.
  • Establishments exempted under the EDLI scheme pay inspection charges at a minimum of Rs.1, calculated at 0.005% in lieu of administrative charges.


Eligible for Registration of PF  is mandatory for all public as well as private firms. The contributions from an employer’s end get exempted under certain situations that need to be addressed by the businessperson via several forms. The Eligible for registration of PF process is now possible online; this has minimised the hassle for the employees who can track their savings by entering the correct login credentials.

Vakilsearch has discussed the withdrawal process of EPF funds in detail through this article. Hope this article related to who is eligible for registration of PF is helpful. To learn more about the contribution rates and monthly compliances, we suggest you read our handcrafted blogs on employees’ provident funds. 

FAQs on Eligible For PF Registration

Who can Eligible for PF registration?

Any employer with an organization that employs 20 people or more is required to register under the EPF scheme. If the organization employs less than 20 people, the employer can still opt to register under the scheme.

Who is eligible for PF Registration?

Employees who draw a basic salary of less than Rs 15,000 per month are eligible for the EPF scheme. All such employees must become members of the EPF, and they cannot opt-out once they become a scheme member.

What is the minimum employee for PF registration?

The minimum employee requirement for PF registration is 20 employees or more.

What is PF service eligibility?

All employees who are members of the EPF scheme are eligible for PF service. This includes employees who are working in factories, shops, establishments, and other covered organizations.

Is PF only for government employees?

No, PF is not only for government employees. Employees working in private organizations can also contribute to the EPF scheme.

Is PF mandatory for salary above 25,000?

Yes, PF is mandatory for employees earning a salary above Rs 25,000, if the organization they are working for is covered under the Act.

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