EPF or Employee Provident Fund is a retirement benefits scheme provided by the government under which employees and employers make an equal contribution towards the scheme. The contribution made by both the employer and the employee is 12 percent of the employee’s basic salary. The employee gets a lump sum amount on retirement with interest.
• He owns a factory having 20 or more people, or
• Any other organization/foundation with 20 or more employees or
• The class of such organizations whom the Central Government may, by notice would specify for compulsory EPF employer registration.
If an employer fails to get EPF employer registration or indulges in the false representation of facts to avoid PF payment, he shall be liable for a penalty of INR 5,000/-.
• Name & address of your company
• Head office & branch details
• Date of company incorporation
• Total employee strength
• Type of business activity
• Nature of business.
• Director/partners’ details
• Employee’s Basic details
• Employees’ salary details
• Bank account details of the company
• PAN card
• 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 in 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).
What is PF?
The Employee Provident Fund or PF is a prerequisite given to the employees over and above their basic salary, which can help them after their retirement, or at the time of any mishappening or emergency.
How does PF registration process help in a pension?
PF is directly related to the employee’s pension. Apart from the employee’s contribution of 12% towards EPF, an equal amount is contributed by the employer. Out of this, 8.33% goes towards the Employee Pension Scheme (EPS).
What if PF registration is not done?
The PF beneficiary will not be able to access the Employer Portal of EPFO and view his PF status unless he has gone through the PF registration process.
What if an employee is not registered at the EPF portal?
Without PF registration, an employee can’t view his PF status on the EPFO portal and also he won’t be able to claim any PF amount.
Which PAN is to be entered for PF registration?
The PAN issued by the Income Tax Department in the name of the business entity is to be used for PF registration.
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