Overview

The Employees' Provident Fund (EPF) is a government-backed savings scheme in India designed to provide financial security and retirement benefits to employees. Under the EPF scheme, both the employer and employee contribute a percentage of the employee's salary to the fund every month. This accumulated corpus, along with interest, is available to the employee upon retirement, resignation, or under specific circumstances such as medical emergencies.

EPF registration is crucial for organizations as it is a statutory requirement for companies with 20 or more employees. Registering for EPF ensures legal compliance, avoiding penalties and legal complications. It also enhances the organization's reputation by demonstrating a commitment to employee welfare. For employees, EPF provides a structured savings mechanism, offering financial stability and tax benefits. Overall, EPF registration fosters a secure and motivating work environment, benefiting both the employer and employees.

What are EPF Objectives?

The Employees' Provident Fund (EPF) has several key objectives aimed at promoting financial security and well-being for employees. These objectives include:

1. Retirement Savings: To ensure that employees have a sufficient financial corpus upon retirement, helping them maintain a comfortable standard of living after their working years.

2. Financial Security: To provide a safety net for employees in case of unemployment, illness, or other emergencies through accumulated savings and interest.

3. Social Welfare: To contribute to the social welfare of employees by mandating savings, thus promoting responsible financial planning and stability.

4. Employee Benefits: To offer additional benefits such as insurance and pension schemes, enhancing the overall compensation package and employee satisfaction.

5. Legal Compliance: To ensure that organizations comply with labour laws and regulations, promoting fair labour practices and protecting employee rights.

6. Encouraging Savings: To cultivate the habit of regular saving among employees, ensuring they build a substantial fund over time through systematic contributions.

Eligibility Criteria for EPF Registration

As EPF is the primary way to save for retirement, but it is managed by EPFO. Eligibility criteria is mentioned below for the successful EPF registration: -

For Employees

• Employees who are earning below 15,000/- per month, they must join EPF and make contribution on regular basis.

• Employees who are earning more than 15,000/- per month, they are not required to make PF contribution, still they can opt if they wish with the help of employer agreement.

For Employers

• EPF registration is mandatory for all the organizations with 20 or more than 20 workers.

Documents Required for EPF Registration

• PAN card of partner/proprietor/director

• Aadhaar card of partner/proprietor/director

• DSC of the partner/proprietor/director

• GST registration certificate or Shop & Establishment Certificate

• Hired, Leased or Rented Agreement

• Address proof of establishment such as water bill, electricity bill or telephone bill (not older than 2 months)

• Cancelled cheque or bank statement 

• License proof issued by licensing authority

Who is Exempted from EPF Registration in India?

Businesses with less than 20 employees are not required to get EPF registration in India as per the Employee Provident Fund Act, still such businesses can register for EPF registration if they wish. The process will be identified as voluntary provider fund registration.

• Employees working in international organizations: Employees working in international organizations or organizations located outside India may be exempt from the EPF scheme, depending on the nature of their employment and the specific agreements between India and the foreign jurisdiction.

• Employees working in establishments that are exempted: If an establishment is exempt from EPF registration, its employees are also exempt from the EPF scheme.

• Employees covered under other provident fund schemes: Employees who are already covered by another provident fund scheme (like an alternative pension or provident fund arrangement), which provides benefits equivalent to or better than those offered under the EPF Act, may be exempted from the EPF.

What are the Different Types of EPF Forms?

Types of EPF form are as follows: -

1. Form 1:-  This form is used by an employer to register an establishment under the EPF Act. It contains details about the establishment, including its name, address, type of business, and the total number of employees.

2. Form 5:- This form is used to provide details of new employees joining the EPF scheme. Employers are required to submit this form each month to list the employees who have been enrolled in the EPF.

3. Form 10:- This form is used to provide details of employees leaving the EPF scheme. It is used by employers to report employees who have resigned or left the organization.

4. Form 10D:- This form is all about availing of pension.

5. Form 10C:- This form is pretty necessary, as it is used to claim benefits under the EPF scheme and also used for withdrawing the funds that the employer contributes under the EPF.

6. Form 13:-  The motive of Form 13 is to keep your money only in a single account, as it is used to transfer your PF account from your last job to current job.

7. Form 19:-  The Form 19 is used for the final settlement of the EPF account.

8. Form 20:- Form 20 is filed in case an account holder passes away then his or her family members can withdraw the PF amount.

9. Form 31:- Form 31 is also considered as PF advance form, as it is used for taking loan, advance and withdrawals from an EPF account. 

10. Form 51F:- This specific form is used by the nominee to claim the benefit of EDLI (Employees' Deposit Linked Insurance).

11. Form 13:- This form is used to transfer the EPF balance from one account to another when an employee changes jobs. The employee can use this form to request the transfer of the accumulated EPF balance from their previous employer’s EPF account to the current employer’s EPF account.

Required Documents for EPF

The following documents you must have for the successful EPF registration

1. PAN card of the Partner/Proprietor/Director

2. Aadhar card of the Partner/Proprietor/Director

3. DSC (Digital Signature Certificate) of the Partner/Proprietor/Director

4. GST registration certificate or shop & establishment certificate or any licence issued by the government for the establishment

5. Copy of leased or rented agreement (if any)

6.  Address proof, such as the water/electricity/telephone bill of the registered office, that must not  be older than 2 months

7. Cancelled cheque or bank statement of the entity

8. License proof issued by the licensing authority or identifier