PROVIDENT FUND (PF) REGISTRATION
Employees Provident Fund (EPF) is a scheme covered under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It is regulated by the Employees’ Provident Fund Organisation (EPFO). Provident Fund (PF) registration is applicable for all establishments with 20 or more employees. PF registration can also be obtained voluntarily by establishments having less than 20 employees.
The PF contribution paid by the employer is 12% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In case of establishments which employing less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%. In most of the cases, for employees working in the private sector, PF Contribution is calculated on the basic salary.
It is mandatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. As per the rules in EPF, employee whose ‘pay’ is more than Rs. 15,000 per month, at the time of joining, is not required to make PF contributions. Also, an employee who is drawing a pay of more than Rs 15,000 can still become a member with permission of Assistant PF Commissioner and with the consent of the Employer.
The UAN (Universal Account Number) is a 12-digit unique number that has been allotted to every PF member by EPFO. The UAN controls all PF accounts of an employee and it can be functioned as one account. Hence employees inconvenience due to shift of job resolved.
1. EPF account balance earns interest even in Idle Status.
2. Savings platform that helps employees save a fraction of their salary every month that can be used in the event if in future employee unable to work, or upon retirement.
3. Housing Loan can be availed.