Overview
Employees’ Provident Fund (EPF) is a government-backed social security scheme managed by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It aims to provide the financial safety, security and stability to employees after retirement, as well as support during emergencies.
Every employer covered under the Act must register with EPFO and provide PF benefits to its employees. Both employer and employee contribute to the fund, ensuring the long-term savings and retirement benefits.
Why EPF Registration is Important
- Legal Compliance: It is mandatory for eligible organizations to avoid penalties.
- Retirement Security: Provides employees with a financial safety net post-retirement.
- Attractive to Employees: Enhances trust and job satisfaction.
- Insurance & Pension Benefits: Includes Employee Deposit Linked Insurance, viz., (EDLI) and pension scheme.
- Tax Benefits: Contributions are eligible for the tax deductions under the Income Tax Act.
Eligibility for EPF Registration
1. Employers:
- Any establishment employing 20 or more employees must register under EPFO.
- Establishments with fewer than 20 employees may voluntarily register.
- Certain organizations, as notified by the government, must register regardless of employee count.
2. Employees:
- Employees earning a basic wage plus dearness allowance of up to ₹15,000/month are mandatorily covered.
- Employees earning above ₹15,000/month can opt-in with employer and EPFO approval.
Process of EPF Registration
EPF registration is carried out only online through the Unified Shram Suvidha Portal (USSP).
Steps:
- Visit the Portal: Go to https://registration.shramsuvidha.gov.in.
- Sign Up: Create an account with employer details.
- Login & Registration: Choose “EPF Registration” and fill in establishment details.
- Upload Documents: Submit the scanned copies of required documents.
- Digital Signature: Complete verification using Digital Signature Certificate (DSC).
- Submission: Submit the application to generate the PF Establishment Code Number.
Documents Required for EPF Registration
- Certificate of Incorporation / Partnership Deed / Registration Certificate
- PAN of the company/firm
- PAN and Aadhaar of employer
- Address proof of establishment (electricity bill, rent agreement, etc.)
- Bank details of the establishment (cancelled cheque)
- GST registration certificate
- Specimen signature of employer
- Digital Signature Certificate (DSC)
- List of employees with their details (name, DOB, salary, Aadhaar, PAN)
Fees for EPF Registration
- Registration Cost: EPF registration with EPFO is free of government charges.
- Compliance Costs: Employers may incur professional/consultant fees for filing and managing compliance.
Timeline for EPF Registration
- Registration Time: The online registration process usually takes 7–10 working days after submission of documents.
- PF Number Generation: Allotment of Establishment Code Number is provided upon successful registration.
FAQs
EPF registration ensures that employees receive long-term financial security through a retirement savings fund, while employers comply with statutory labour welfare laws.
Any person employed directly or indirectly (through a contractor) who earns wages as per EPF norms is treated as an employee and is eligible for PF benefits, except apprentices engaged under the Apprentices Act.
Employers must apply for EPF registration within one month from the date their workforce strength reaches 20 employees or more.
The UAN is a unique 12-digit number allotted to each employee contributing to EPF. It remains the same throughout their career and helps in tracking PF contributions across different jobs.
Yes. International workers employed in establishments covered under the EPF Act are also required to contribute to EPF unless exempted by a Social Security Agreement (SSA) between India and their home country.
Out of the employer’s 12% contribution:
- 8.33% goes to the Employee Pension Scheme (EPS),
- 3.67% goes to the Provident Fund (EPF), and
- Additional amounts may go towards administrative and insurance funds.
Yes, linking Aadhaar with UAN is mandatory for employees. For employers, the Aadhaar-linked Digital Signature Certificate (DSC) of the authorized person is needed for online registration and filings.
Once registered, an establishment cannot surrender or cancel EPF registration, even if the number of employees falls below 20. Compliance remains mandatory until officially exempted by EPFO.
Employers must maintain detailed records of wages, attendance, PF contributions, nominee details, inspection reports and returns filed, as these may be verified during EPFO inspections.
EPF contributions accumulate with interest, creating a retirement corpus. Employees can also avail partial withdrawals for housing, medical emergencies, marriage or education, making it both a savings and security scheme.
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