Concepts of Employee Provident Fund
A benefit that employers offer to their staff in addition to their base pay is the Employee Provident Fund.
What is the PF Contribution rate?
- 12% of Basic Salary of Employee deposited directly towards EPF
- 12% of Employer contribution is divided as –
8.33% of contribution towards Employees’ Pension Scheme
3.67% of contribution towards Employees’ Provident Fund
1.1% of contribution towards EPF Administration Charges (After 01/04/2017 0.65%)
0.5% of contribution towards Employees’ Deposit Linked Insurance (minimum RS. 500/-)
0.01% of contribution towards EDLI Administration Charges (After01/04/2017 RS. 0/-)
What are the different Provident Fund forms?
- EPF Form 11
- EPF Form 13 Transfer Form
- EPF Form 10C, 19, 31(New)
- EPF Form 19
- EPF Form 31 Advance from the Fund
- EPF Form 20,10-D,5IF(NEW)
- EPF Form-10C
PF Registration: What are the benefits?
Coverage of risks: The primary advantage of the Provident Fund is that it insures workers and their dependents against risks associated with retirement, illness, or death.
Uniform account: The fact that the Provident Fund account is permanent and transferable is one of its most important characteristics. It is transferable to any other employment location.
Insurance Scheme Linked to Employee Deposits: The scheme is available to all holders of PF accounts. As per this, the life insurance premium is reduced by 0.5% of the earnings.
Long-term goals: Several long-term objectives, like getting married or going to college, call for the quick availability of money. This is when the amount of PF that has accumulated comes in beneficial.
Emergency needs: Unexpected events can include marriage, other family celebrations, accidents, or illness that call for immediate financial support. The PF amount is a highly helpful resource.
Pension coverage: In addition to the employee’s 12% contribution to the Employee Provident Fund (EPF), the employer also contributes an equivalent amount, which includes 8.33% to the Employee Pension Scheme (EPS).
Documents Required to Register for an EPF
- Copy of the PAN Card of firm/company/society/trust
- Partnership deed (In case of partnership)
- Cancelled cheque (bearing pre-printed company / firm name & Current Account No)
- Registration Certificate (In case of Proprietorship/ Partnership/ Company / LLP)
- Certificate of incorporation (In case of company/ society, trust/ NGO)
- Copy of PAN Card of Directors / Partner
- Copy of Aadhaar Card/ Voter identity card of Director
Employee Provident Fund Eligibility
To become a member, a person must be employed and earning up to Rs. 15,000 at the time of joining.
The term “wages” in this act refers to the cash value of meal concessions, retaining allowances, and Basic + Dearness Allowances, if any.
Frequently Asked Questions(FAQs)
Every month, 12% of the employee’s Basic Salary + DA will be deducted as his/her contribution to the Employee Provident Fund.
Every employee who makes an EPF contribution is given a 12-digit UAN, that allows PF accounts to be transferred between employers.
Monthly returns must be filed by the 25th of each month and the annual return must be filed by the 30th of April for each establishment registered under PF.
The deadline for EPF contributions is the 15th of each month.
