14+ Years of Experience
The great explorer of the truth, the master-builder of human happiness no one rejects dislikes avoids pleasure itself because it is pleasure but because know who do not those how to pursue pleasures rationally encounter consequences that are extremely painful desires to obtain.
Read MoreUnderstanding the EPF Scheme
The EPF Scheme, initiated by the government, serves as a social security initiative designed to encourage savings among employees and ensure post-retirement benefits such as pensions. Employees accumulate savings over time through regular contributions deducted from their salaries. Upon retirement or when leaving their jobs, these savings can be accessed as a lump sum payment.
Under the EPF scheme, both employers and employees contribute 12% of the employee's basic pay. Of the employer's contribution, 3.67% is directed to the employee's EPF account, while the remaining 8.33% is allocated to the Employees’ Pension Fund (EPF). Employees can withdraw EPF amounts upon retirement (at or after 58 years of age), after two months of unemployment, or in the event of death before reaching retirement age.
EPF Registration
Who Needs EPF Registration for Employers?
EPF Registration for Employers is legally required if your business meets any of the following criteria:
Factories: Any factory involved in industry and employing 20 or more individuals must obtain EPF Registration for Employers.
Other Establishments: Any business with 20 or more employees, or any other class of establishments that the Central Government specifies, is required to complete EPF Registration for Employers.
Employers must complete EPF Registration for Employers within one month of reaching the 20-employee threshold. Delays in registration can lead to penalties. Once registered, the business continues to be under the EPF Act, even if the number of employees falls below 20.
Central Government Requirements for EPF Registration for Employers
The Central Government may extend the EPF Registration for Employers requirement to businesses with fewer than 20 employees, provided they give a minimum two-month notice. Additionally, businesses where the employer and the majority of employees agree may voluntarily apply for EPF Registration for Employers by notifying the Central Provident Fund Commissioner.
Once the Central Provident Fund Commissioner approves the request, and it’s published in the Official Gazette, EPF Registration for Employers becomes applicable from the date of agreement or any later date specified.
EPF Contribution Requirements for Employers
For all registered establishments, EPF Registration for Employers mandates a contribution of 12% of the employee's basic salary by both the employee and employer. For establishments with fewer than 20 employees, the contribution rate is adjusted to 10%. BizMantra helps employers meet these contribution requirements accurately and efficiently.
EPF Contribution Requirements for Employers
For all registered establishments, EPF Registration for Employers mandates a contribution of 12% of the employee's basic salary by both the employee and employer. For establishments with fewer than 20 employees, the contribution rate is adjusted to 10%. BizMantra helps employers meet these contribution requirements accurately and efficiently.
EPFO Return Filing Requirements
EPFO return filing involves submitting detailed reports to the Employees' Provident Fund Organization (EPFO). Filing is compulsory for employers registered under the Provident Fund scheme and must be conducted monthly, with a deadline set for the 25th day of each month.
Employers must submit various data points for return filing, including total contributions made by both the employer and the employee, details of employees covered under the scheme, their PF account numbers, and other relevant information.
Who is Required to File EPFO Returns?
Entities governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, must file EPFO returns. This includes establishments with 20 or more employees and those with fewer than 20 employees that are voluntarily registered under the Act.
Advantages of Filing EPFO Returns
Regularly filing EPFO returns offers numerous benefits for both employers and employees, including:
Compliance with Legal Requirements: Filing returns is a legal obligation, ensuring avoidance of penalties and fines for non-compliance.
Employee Security: EPF contributions are crucial for an employee's social security. Consistent return filing guarantees accurate recording of these contributions, safeguarding employee financial security.
Tax Advantages: EPF contributions are eligible for tax deductions. Regular EPFO return filing enables employers to claim these tax benefits, contributing to overall financial efficiency.
Organized Record-Keeping: Regular filing of returns helps employers maintain systematic records of employee EPF contributions, simplifying the tracking and management of employee benefits.
