PF Registration

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ABOUT EPF Registration For Employers

The Government of India will pay the employer and employee contribution to EPF account of employees for another three months from June to August 2020. The benefit is for establishments with up to 100 employees and where 90% of those employees draw a salary of less than Rs 15,000 per month. The contribution to EPF is reduced to 10% from 12% for non-government organisations.

Employees Provident Fund [EPF] is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organisation (EPFO) which is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.

Applicability of EPF Registration for Employers

EPF registration is mandatory for all establishments-
  • which is a factory engaged in any industry having 20 or more persons, and
  • to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable .A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration.

Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.

Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.

The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.

EPF Registration Procedure

The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:

  • Establishment details:

    – Name of the establishment
    – Address
    – Incorporation Date
    – PAN
    – Type of establishment

    If the establishment is a factory then the following details must be provided:

    – Factory License Number
    – Date of License
    – Place of issue

    If the establishment is an MSME then MSME registration details to be provided.

  • eContacts:

     The employer must provide email id and mobile number of the authorised person.

  • Contact Person: 

    Employers must provide details of the contact person like a manager. The details required are:

    – Name
    – Date of Birth
    – Gender
    – Contact details

  • Identifiers:

    The identifiers are the license information that the employer needs to provide.

  • Employment details:

    – Employee strength
    – Gender
    – Type of activities
    – Wages above limit
    – Total wages

  • Branch/Division: 

    Branch details such as name/premise number and address.

  • Activities:

     The employer needs to select the type of business and the activities included from the drop down lists available.

Conclusion

Till F.Y.2017-18, the EPF interest rate stands at 8.55 percent. In terms of returns from a debt instrument, EPF certainly 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 contributions are deductible from income.

There is hardly any debt product that gives such high return with safety and assurance. Therefore, it’s better to transfer the PF account at the time of switching jobs and avoid the temptation to withdraw the amount.

FAQ'S

Post 01.042012, the employers are required to make remittances only after generating challans from the employer portal of EPFO. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.

When the employer is attempting to register the following error messages can show up:

  • “No Record Found” upon entering the establishment id – The employer must verify the code and extension number and the EPFO office. If all details are accurate, then the employer must contact the concerned EPFO regional/Sub Regional office.
  • “Your Establishment is already registered” upon entering the establishment id – The employer must verify the code number and extension number if any, and the correct EPFO Office. If the details are accurate, the employer must send a mail to the EPFO Helpdesk on ecrhelpdesk@epfindia.gov.in and mention “RESET REGISTRATION”. The employer will receive a form which has to be submitted under the signature of employer/Authorised signatory to the concerned local EPFO Office After getting SMS on successful resetting of registration; the employer can register again.

The employer can modify the details on the portal when the need arises. The procedure is as detailed below:

  • Mobile Number – The employer must log in to the Employer Portal. Then click on the link “Edit primary mobile number” under “PROFILE”. The employer must enter the new mobile number, an SMS with a PIN on the new mobile number will be received by the employer. Enter the PIN and click “Change Primary Mobile”. Confirmation SMS will be received on the new mobile number, which is now the primary number.
  • Email id – The employer must log in to the Employer Portal. Under the “PROFILE” Menu, click on the link “Confirm primary email”. The employer needs to enter a new email id replacing the id that appears. Then click on the “Send Verification link”. An email message will go to the registered email id. The employer must go to the email account and click the link in the message received. The verified email id will be recorded in the system, and in the future, all emails will be received on the new id.

If the employer forgets the user ID or password, then the employer must click on the “Forgot Password” link in the login screen. The password can be reset using the establishment id, primary email id, and mobile number.

FAQ'S

Yes, you can opt out of EPF scheme if your monthly salary (basic+DA) is more than 15,000, but you have to decide it before becoming the member of EPF. Once you become a PF member, you can’t leave it till you are in the job.

Yes you can join EPF any time before the retirement. There is no such restriction.

It is not possible without the employer. The contribution towards employer is the must for EPF.

No, Every new employee gets the Universal Account Number. This number is portable and works with any job. You can quote the existing UAN to the new employer. It will make your PF membership portable. The PF balance from the previous company also gets transferred through the UAN.

  • Today, EPFO asks UAN for every interaction with it. EPF membership, transfer, withdrawal and even complaint can’t be lodged without the UAN.
  • Normally, the EPFO issues UAN for all of the active members. The employers have to distribute this number to its employees. But, an employee can also check its UAN status through the UAN portal. It requires the PF member ID to reveal the UAN.
  • Besides this one can get UAN even before getting the job. This UAN can be mentioned at the time of joining a job.
  • The EPF is constituted mainly for the low income worker. This class of worker is not very aware about the retirement saving. This forced saving builds a decent retirement corpus. Therefore, people who earns more than Rs 15000/month are free to opt out of EPF.
  • However, the terms and condition of EPF make it restricted saving. Because of the restriction, this saving lasts till the retirement. Whereas, other saving can be spent before the retirement. Also, the EPF investment is very secure and cheap saving plan.

Minimum 10 years eligible service will entitle for member pension

Yes. It gets transferred automatically along with the EPF.

Yes, an EPF member can increase his EPF contribution up to the 100% of the salary. But an employer is not bound to match the amount beyond 12%. Also, if an employer increases its contribution beyond 12%, the additional amount would be taxable.

If an employer is not signing the EPF withdrawal application. You have two ways to proceed.

  • Use the new for of EPF withdrawal and submit it directly to the regional EPF office. For this method, you should have activated UAN and approved KYC.
  • Fill the EPF withdrawal form yourself and get it attested from the gazetted office or bank manager.