Provident Fund is one of the greatest savings tools and assurance for employees as it offers a financial security to employees. Employees’ Provident Fund (EPF) scheme was enacted in the year 1952 and is managed under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 by a central body named Employees' Provident Fund Organisation (EPFO) which the largest social security organisation of world in terms of its clientele and volume of undertaken financial transactions. An establishment needs to get registered with Provident Fund Department within one month of hiring 20 employees. If default made in registration, penalty may be imposed by the Department.
EPFO falls under the purview of Ministry of Labour and Employment. It covers every organization with 20 or more employees which also includes contract employees like housekeeping, security or other contractual workers. Establishments with less than 20 employees may also voluntarily register themselves with PF to provide the benefits of Provident Fund to their employees. Any employee earning less than Rs. 15,000 per month is required to become a member of EPF. Contribution made under EPF scheme is eligible for deduction under Section 80C of income tax Act.
Under EPF scheme, an employee has to contribute a total sum of 6% of basic salary including dearness allowance & retaining allowance towards the Provident Fund scheme and an equal contribution is paid by the employer. The employee gets a lump sum amount along with interest, upon retirement. Employer must deposit 12% (or 10%, as the case may be) towards employee’s PF by 15th of every month. Employees are allotted 12 digit UAN is remains same in case of change of employer.
ComplyKart is known as best Labour laws consultants and have expertise in PF Registration across India. Once we get the required documents, our experts file the application on time and get the PF number at the earliest time as possible.