Employees Provident Fund is a retirement benefit scheme for all salaried people and this fund is maintained by Employees Provident Fund Organization of India (EPFO) and any company having 20 employees or more is required to register with EPFO.
During the working tenure, employee and employer both contribute 12 percent of the basic salary of employee into EPF account. Employee's entire 12 percent goes into EPF account and Employer's 3.67 percent is transferred into EPF account of employee. Rest 8.33 percent from employer's side is diverted in Employees Pension Fund (EPF).
EPF Registration is mandatory for companies/organizations having more than 20 individuals. Registration can be done online and offline both but preferably done with online mode.
Employer needs to provide following details along with EPF Form which can be downloaded from EPFO website
Name and address of the company along with head office and branch details
Date of Incorporation of company
Provide Details of employees (name, date of joining, salary, etc)
Business of the company
Banking details of the company
Following documents are required to furnish for successful registration of EPF
Copy of partnership deed (In case of partnership firm)
Certificate of Incorporation (In case of Private or Public Company)
Registration Certificate (In case of society)
PAN details of the company
Proof of Incorporation
Salary details of employees
Balance Sheet details
Provident fund is a social security system that was introduced for the purpose of financially securing the retirement years of an employee. Under PF, contributions are made by the employer and the employee on a monthly basis.
PF return is due on the 25th of each month.
Yes, contributing to EPF is mandatory for the employees who have a basic salary plus dearness allowance is up to Rs.15,000.
Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job and then withdraw.
Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension Fund and 3.67% goes to PF Fund
For eg: - An employee receives Basic pay of Rs 10,000 per month. PF calculation: Since the employee's Basic is above Rs 6,500, the stipulated ceiling for mandatory PF Gross, his PF contribution can be calculated as 12% of Basic Salary.
The statutory time limit for your claim to get processed is 20 days. This 20 days’ time limit is the time between EPFO receives it and the amount crediting in your bank account. If you are submitting directly to EPFO in UAN based claims, the disposal will be faster.
As per the latest rules, you cannot withdraw your PF amount. You can withdraw your whole PF account only once you attain the age of 58 years old.