Employee Provident Fund (EPF) Simplified with Vyapar Samadhan

Employee Provident Fund (EPF) is a vital scheme for Indian employees, governed by the Provident Funds and Miscellaneous Provisions Act, 1952, and regulated under the Employees Provident Fund Organization (EPFO). Vyapar Samadhan.com streamlines the EPF registration process, ensuring compliance with regulations.

Eligibility for EPF Registration:

• Employers with 20 or more employees must apply for PF registration.
• In specific cases, establishments with fewer than 20 employees may still be eligible.

For Employers:

• Mandatory PF registration for establishments with 20 or more employees.
• In some cases, PF registration is applicable to establishments with fewer than 20 employees, subject to government notification.

For Employees:

• Employees with a monthly income below Rs. 15,000 must mandatorily become EPF members.
• Employees with a basic pay exceeding Rs. 15,000 at joining are not required to contribute to PF.
• However, they can still opt for PF membership and make contributions with the employer's share.

Contribution Breakdown:

• Employer contributes 12% (Basic Salary + Dearness Allowance + Retaining Allowance).
• Employee contributes an equal amount (12%).
• In establishments with less than 20 employees, both employer and employee contribute 10%.

PF Contribution Distribution:

• 3.67% - Employees Provident Fund
• 1.1% - EPF Administration Charges
• 0.5% - Employee's Deposit Linked Insurance
• 0.01% - EDLI Administration Charges
• 8.33% - Employees Pension Scheme

Employees Pension Scheme (EPS):

• 8.33% of the employer’s contribution goes to EPS, calculated at Rs. 15,000.
• The EPS amount is Rs. 1,250 if the basic pay is Rs. 15,000.
• On superannuation, the employee receives their share, while the employer's share is credited to the EPF account.

Documents Required for Registration:

• PAN of Partner, Proprietor, or Director
• Address proof (not older than 2 months)
• Aadhar card of Proprietor, Partner, or Director
• Canceled Cheque or Bank Statement
• Digital Signature of Proprietor/Partner/Director
• Hired/Rented/Leased Agreement (if applicable)

EPF Charges:

• Contribution rounded to the nearest rupee for employee and employer share, pension, and EDLI.
• Monthly EPF administrative charges must be a minimum of Rs. 500.
• Minimum EDLI administrative charges are Rs. 200.
• Inspection charges applicable if exempted from PF or EDLI scheme.

Due Date for Contribution:

• Deduct employee contribution before salary disbursal.
• Pay both employee and employer shares to EPFO within 15 days of each month.

EPF Benefits:

• Offers high returns with safety and sovereign backing.
• Interest earned is tax-free.
• Enjoys EEE (Exempt, Exempt, Exempt) status.
• Contributions are deductible from income.

Vyapar Samadhan.com ensures a hassle-free EPF registration process, providing a secure and efficient platform. Opt for EPF account transfer during job switches to enjoy the PF's safety, high returns, and tax benefits.