The Employee Provident Fund or PF is a retirement saving scheme provided by the government for all salaried employees in India, on which fixed interest is regularly paid.
The Employee Provident Fund is a perquisite given by the employer to their employees over and above their basic remuneration
PF Registration is mandatory for all the organizations that have 20 or more employees. Such organizations are required to contribute a fixed amount towards Employee Provident Fund out of employee salary and wages.
If an employer fails to get EPF employer registration, or indulges in false representation of facts to avoid PF payment, he shall be liable for a penalty of INR 5,000/-.
PF number looks like this:- MH/BAN/0001011/000/0000110. Here are the components in the PF number format:-
PF registration for Employer is compulsory if:-
Employers need to furnish the following details to get PF registration.
Given below are the benefits of getting EPF registration:
Risk coverage:The most fundamental benefit of the Provident Fund is to cover the risks employees and their dependents that may arise due to retirement, an illness or their demise.
Uniform account:One of the most important aspects of the Provident Fund account that it's steady and transferable. It can be carried forward to any other place of employment.
Employee Deposit Linked Insurance Scheme: This scheme is for all the PF account holders. According to it, 0.5% of the salary is deducted from the life insurance premium.
Long-term goals: There are many long-term goals such as Marriage or higher education that require the urgent availability of funds. The accumulated PF amount often comes handy during such occasions.
Emergency needs: There are certain unanticipated occasions like marriage or other family occasions, any mishappening or illness that require urgent finance. The PF amount can be of great help.
Covers pension:Apart from the employee’s 12% contribution towards EPF, an equal amount is contributed by the employer, which includes 8.33% towards Employee Pension Scheme (EPS).
Universal Account Number (UAN) refers to the unique 12 digit number allotted to the employee. UAN Number records employee pf deposited amount and other relevant information which shall continue throughout the employment period and after retirement also. The same can be obtained only through employer EPF registration code.
The Employer can generate the employee’s UAN. In the event of change of employment, the previous PF UAN number registration shall be linked to the next employer. Employee needs not to get a fresh EPF UAN registration.
Each & Every establishment having employer EPF registration needs to file regular monthly returns on 25th of every month and one annual return before the 25th of April every year.
The due date for payment of PF by employer having EPF registration is 15th of every month.
|
S.No |
Period of Delay |
Rate of Penalty (p.a.) |
|
1. |
Upto 2 months |
5% |
|
2. |
2-4 months |
10% |
|
3. |
4-6 months |
15% |
|
4. |
Beyond 6 months |
25% |