EPF Registration

The Employees' Provident Fund Organisation (EPFO) is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme.

Applicability

  • Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. Employing 20 or more persons.
  • Cinema Theatres employing 5 or more persons.
  • Voluntary Coverage : If any of the establishment is not satisfying the above two conditions for coverage and if the employer and majority of the employees are willing , the Act may be applicable to such establishment.

Employer Responsibility

  • EPFO solicits cooperation of all establishments in ensuring a decent post retirement life for all workers & EPFO solicits advice and suggestions from employers and establishments in facilitating achievement of this goal.
  • Enrolment of all eligible employees on its rolls (regular or contractual) – wages upto Rs 15,000 at the time of joining the establishment.
  • Have to deduct 12% contribution from Employees wages/salary (Basic+DA+retaining allowances if any) on monthly basis and it has to be remitted to EPF fund along with employer equal share.
  • Confirm remittance status of contractual employees belonging to an EPF registered establishment before releasing payment to such contractors.
  • Enrol employees drawing wages more than 15,000, if they so desire.
  • Verify and confirm that all employees have KYC (Aadhaar, Bank Account, PAN) compliant UAN (Universal Account Number).

EPF Trust Registration

Employers can own private PF schemes, subject to certain conditions prescribed under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. These trusts are regulated by the Employees’ Provident Fund Organisation (EPFO). These private EPF trust are required to seek approval under the Income-tax Act, 1961 for employees to get tax benefits

  • Only EPF will be handed by Trusts.
  • EDLI may be continued with EPFO. If employer provide equal or better benefits, exemption may be granted in lieu of EDLI also.
  • c) However, the pension or EPS is payable only by the EPFO. So EPS portion still needs to be submitted to EPFO.

The PF Trust may frame their own rules and regulations for maintenance of PF accounts but such rules and regulations are supposed to be based on relevant PF rules.

Advantages

  • The private EPF Trust seems to be more appealing as money remains with the in-house trust formed by the employer.
  • The employees also gain from the tax benefits which were at par with the statutory provident fund scheme as well as speedier settlement of their claims on retirement/ resignation.
  • Easy Availability of Advances.
  • Getting DSC [DIGITAL SIGNATURE CERTIFICATE] for all Directors.
  • No hassles of dealing with public departments.
  • Availability of Refundable advances.
  • Faster settlements
  • Employee may get more interest

PMPRY Scheme:

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the 8.33% EPS contribution of the employer for the new employment.

  • All companies are eligible.
  • For textile sector, 12 % employer contribution will also be paid by the government.
  • Thus the companies can save significantly in EPF contribution.

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