Employees Provident Fund is managed as per Employee Provident Fund and Miscellaneous Provisions Act, 1952. The Employees' Provident Fund Organization helps a person to cope up with his daily expenses and ensures that the current lifestyle of the employee is upheld even after the retirement. The scheme is mandatory for employees whose gross salary is less than or equal to fifteen thousand rupees per month.The scheme was particularly imposed on organizations to deduct and deposit PF contributions for the fortune welfare of its employees.
A business operating with more than 20 employees is eligible to enroll themselves in this scheme. An employee contributes 12% of his salary towards the scheme, and the employer also contributes 12% for the same. 1% of Admin Charges are included as well. The calculation is done on Basic Salary and Other Allowances, but HRA is excluded. The computed amount is known as PF Gross Salary.
PF comes along with major benefits for the employees. These include-
A company or startup should check a few aspects to get them enrolled under the scheme of the Employees' Provident Fund.
- One ID Proof is needed, be it Aadhaar Card, PAN Card, Passport, Voter ID, etc of the Founders.
- 1 Address proof either Aadhaar Card, Passport, Voter Card, etc. of Founders.
- Certificate of formation of the company (Registered P. Deed, COI, etc.) along with MOA & AOA.
- Soft copy of the employer signature needed.
- Soft copy of the employer signature needed.
- No Objection Certificate (NOC) is required from the owner of the property.
- Rent Agreement must be provided.
Application and Compliance of EPF are very simple. With the help of a few steps, you can achieve your target. Let us dig deep and know the steps to register your company under the Provident Fund Scheme.
Apply - Shram Suvidha Portal is the dedicated portal for registration under the PF scheme. Apply by logging in to the portal.
Filling the application form - An online form is available in the Shram Suvidha Portal, and you are obliged to duly fill in the form with correct details.
Submission - Duly filled form is to be submitted to the portal along with a digital signature.
Registration Certification - The details and documents furnished are then verified by the department. After this, the company is presented with the Certificate of Registration under the EPF scheme.
Creation of Unique ID and Password - After receiving the certificate of registration, a company is required to create a unique login ID on the unified portal. This will give access to the PF accounts of all employees of that company.
UAN stands for Universal Account Number. It is a 12- digit account number allotted by EPFO to every employee with which he manages his PF account.
An employee can manage his PF account online with the help of a UAN number, whereas the EPF number doesn't provide this facility. UAN number stays the same throughout, till the time the person is employed. Whereas, EPF number changes every time the employee changes his job.
When the number of employees in a business exceeds the limit of 20 employees, then the company is required to register itself under EPF.
The employee contributes 12% of his monthly salary. In Addition to that, the employer also contributes the same amount to EPF, i.e., 12% is contributed by the employer as well.
A total of 1% of Admin Charges are required to be paid.
Yes, a provision is made for employees who want to opt-out of the EPF scheme. When the PF Gross Salary of an employee is more than Rs 15000 per month, then he can willingly opt-out of the EPF scheme.
EPF stands for Employee Provident Fund, and VPF stands for Voluntary Provident Fund. VPF is an additional investment account that is opened by employees to help themselves after retirement.
EPS stands for Employee Pension Scheme. It is deducted out of the contribution made by the employer. As per the EPF act, employees can withdraw this amount after they have achieved the age of 58 years.
Form - 11 is a self-declaration form that is to be filled by the employee at the time of joining.
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