What is an Employee Provident Fund (EPF)?
Provident Fund or Employee Provident Fund (EPF) is a kind of a pension fund regulated by the Employees’ Provident Fund Organization (EPFO) as a means to support individuals post-retirement. EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. An employee is liable for the deduction of 8.65% (as of 2020) from their salary towards PF and the employer pays an equal contribution to the scheme. The employee receives a lump sum amount which includes self and employer’s contribution with interest on both, on their retirement.
Eligibility for EPF
Organizations that employ at least 20 members or more have to register for EPF. Some organizations, subject to specific conditions and exemptions, with less than 20 employees, also have to register for EPF. If an employee draws a basic salary of Rs 15,000, then they are termed as non-eligible for the EPF scheme. However, if an employee draws a basic salary less than Rs 15,000 at the time of joining the company, then it is mandatory for them to become a member of the scheme through their employer. Employees drawing over Rs 15,000 can voluntarily opt to be a part of the EPF scheme. 12% of the basic salary is contributed by the employee towards EPF with an equal contribution by the employer. The rate is 10% for organizations with less than 20 employees.
EPF Registration Procedure
Employers can now complete the EPF Registration Procedure using the following steps:
- Visit the EPFO Official Portal. Select Establishment Registration.
- Click on Sign Up in order to create your account. Enter your Name, Email ID, Mobile Number and click on Sign Up. After this a confirmation email is sent to your registered email ID.
Note: If you are an existing user, log in by entering your UAN (Universal Account Number) and Password.
- Then, click on Registration for EPFO-ESIC. You will be redirected to a new page, click Apply for New Registration.
- After this, you will be given two options namely Employees State Insurance Act and Employees Provident Fund and Miscellaneous Provisions Act 1956.
- Select any one option and click on Submit.
- You will be redirected to a page where you have to enter the following details in order to complete the EPF Registration Process.
- Details of Establishment
- Employer and Employee details
- Identity Proofs
- Details related to work and others
- Click on the Submit option to complete the registration.
- Then, submit the Digital Signature Certificate (DSC), in case if you are a new applicant.
A confirmation email will be sent to your registered email ID post the completion of the EPF Registration Procedure.
Documents required for the EPF Registration
Each type of company requires its own set of documents for EPF registration.
| Company Type | Documents Required |
| Partnership Firms | 1. Certificate of Partnership for the firm 2. Deed of partnership 3. ID Proof and Address Proof of all the partners of the firm 4. Details of all the partners of the firm |
| Proprietorship Firms | 1. Name of the applicant/employer 2. PAN Card details 3. Phone Number 4. ID Proof and Address Proof 5. Address proof of the firm |
| LLC/LLP | 1. Incorporation Certificate 2. Director’s ID Proof 3. Director’s Digital Signature Certificate 4. Details of all the directors 5. Address and ID Proofs of all the directors 6. Memorandum of Association (MoA) and Articles of Association (AOA) |
| Society/Trust (Co-operatives) | 1. Incorporation Certificate 2. Memorandum of Association (MoA) 3. PAN Card details 4. Address Proof 5. Details of the president of the society and its members |
| Other Entities | 1. Bill of the first sale 2. Bill of the first purchase of the machinery and other raw materials 3. Bank details (IFSC Code, Name, Address, etc) 4. Monthly strength of employees’ record 5. Salary details |
Delay in the payment of EPF invites a penalty between 5% and 25% on the shortfall of payment of dues depending on the duration. The EPFO has decided not to impose any penalty for delay in payment of EPF contributions by firms during the nationwide lockdown.
 is an initiative by the government to offer social security to the employees to strengthen the employer- employee bond.){kind=link}