The Employee Provident Fund (EPF) is a government-backed retirement savings scheme regulated by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour. EPF registration is mandatory for companies with a certain number of employees. To register, businesses must submit essential documents like PAN card, address proof, bank details (including a cancelled cheque), and company registration proof—whether it's a Private Limited Company or LLP.

Once registered, employers receive a Universal Account Number (UAN), which enables employees to manage their PF accounts across jobs. Both employer and employee make monthly contributions based on basic salary and dearness allowance. Timely payments are important to avoid penalties and interest.

Sperso Filings simplifies this process by assisting employers with documentation, compliance, and timely submissions. Our experts ensure you meet all legal requirements without hassle.

The EPF scheme offers key benefits such as retirement savings, tax exemptions, and financial stability post-retirement, especially useful for senior citizens. Businesses below the employee threshold can also opt for voluntary registration.

The Shram Suvidha Portal and EPFO website support EPF filings and ensure proper compliance under the EPF & Miscellaneous Provisions Act. The portal is also accessible for screen readers, making it easy to use for everyone.

What is EPFO?

The Employees' Provident Fund Organisation (EPFO) is a government body under the Ministry of Labour and Employment, India. It manages social security schemes like the Employees' Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees' Deposit Linked Insurance (EDLI) for the organized sector. Its main goal is to provide financial security and retirement benefits to employees through regular savings and contributions.

Role and Functions of EPFO

The Employees’ Provident Fund Organisation (EPFO) manages provident funds, pension, and insurance schemes for millions of employees in India. It oversees employer and employee contributions under the Miscellaneous Provisions Act and ensures each employee’s EPF savings accumulate in a secure account. EPFO also maintains the Universal Account Number (UAN), enabling employees to manage their PF accounts across different jobs.

History of EPFO – Key Milestones

• 1951: The Employees' Provident Funds Ordinance initiated the PF system in India.
• 1952: The EPF Act replaced the ordinance and officially launched the scheme.
• 1976: EDLI Scheme was introduced to provide life insurance to EPF members.
• 1995: Employees’ Pension Scheme (EPS) was launched for retirement pensions.
• 2003: EPFO gained autonomous status.
• 2014: Unified Member Portal made EPF management easier for employees.
• 2015: Universal Account Number (UAN) launched to unify multiple PF accounts.
• 2020: EPFO introduced a mobile app for quick access to EPF passbooks.

Services Provided by EPFO

• PF Registration for Employers: Helps employers submit essential documents, including Digital Signatures, and ensures employee count compliance.
• Managing Contributions: Enables seamless monthly contributions via the Unified Portal.
• Online Services: Offers facilities like online EPF registration, PF withdrawals, and grievance redressal.
• Pension Services: Provides retirement benefits under the Employees’ Pension Scheme (EPS).
• Support Tools: Includes the EPF Passbook app and UAN management to simplify account access for members.

How the EPF Scheme Works

The Employees’ Provident Fund (EPF) is a government-backed savings scheme aimed at securing employees’ financial future post-retirement.

Under this scheme, both the employee and employer contribute 12% of the employee’s basic salary each month. These contributions, along with interest, accumulate in the employee’s EPF account, managed by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour.

Employers must register with the EPFO by submitting documents like PAN, address proof, bank details, and a cancelled cheque. Once registered, a Universal Account Number (UAN) is issued to each employee, enabling them to manage their EPF across different jobs.

Funds can be partially withdrawn for emergencies like medical needs or home purchases. Contributions are tax-advantaged, and the fund is backed by the Central Government, ensuring secure returns.

Employers must complete establishment registration on the EPFO portal and make timely monthly contributions to avoid penalties. Voluntary registration is available for employers who don’t meet the mandatory employee threshold.

Employees can track their balance using the Unified Portal, making the EPF a reliable and accessible savings tool—especially valuable for retirement planning and long-term financial security.

Purpose and Objectives of the EPF Scheme

Retirement Benefits

EPF offers a lump sum payout to employees at retirement or upon job exit, ensuring financial support in later years.

Encouraging Savings

With mandatory contributions from both employer and employee, the scheme promotes regular saving habits for future security.

Financial Safety Net

EPF is designed to safeguard employees’ finances, helping them manage key life expenses with more stability.

Importance of Provident Fund

• Long-Term Savings: EPF helps employees build savings over time through regular contributions from both employer and employee.
• Post-Retirement Support: Provides financial stability after retirement.
• Employer Contribution: Doubles the savings, enhancing financial security.
• Interest Earnings: EPF accounts earn attractive interest.
• Tax Benefits: Contributions eligible under Section 80C.
• Emergency Use: Partial withdrawals allowed for major needs.
• Government-Backed: Ensures fund safety and social security.
• Easy Registration & Access: Online portals enable quick account management.

Benefits of EPF Registration

Benefits for Employees

• Retirement Savings
• Tax Benefits
• Emergency Withdrawals
• Interest Earnings
• Life Insurance (EDLI)
• Pension Benefits
• Portability with UAN

Benefits for Employers

• Legal Compliance
• Employee Retention & Trust
• Tax Deductions
• Professional Image
• Government Benefits Access

Eligibility Criteria for EPF Registration

For Employees

• Salary Limit: ₹15,000/month
• Age: No age bar
• Job Type: Full-time, part-time, contractual

For Employers

• Minimum Staff: 20 employees
• Eligible Businesses: All qualifying factories and establishments
• Voluntary Option: Allowed for fewer employees
• High-Earning Employees: Need approval
• Registration Deadline: Within 1 month of eligibility

Documents Required for PF Registration

Common Documents (All Business Types)

• PAN Card
• Address Proof
• ID Proof of Owners/Directors

For Proprietorship

• Proprietor’s ID & Address Proof
• Business Registration Certificate

For Partnership Firms / LLP / Private Limited Companies

• Partnership Deed / LLP Agreement
• Certificate of Incorporation
• Board Resolution

For Trusts or Societies

• Registration Certificate
• Trust Deed
• Trustee’s ID & Address Proof

Additional Info Needed

• Business type and nature
• Company bank details
• Total number of employees
• Employee details
• Business incorporation date
• Business addresses

How to Apply for PF Registration Online

Step-by-Step Online Registration Process

1. Visit EPFO Website
2. Open Member Portal
3. Register Your Establishment
4. Download the User Manual
5. Fill Out Application Form
6. Upload Required Documents
7. Verification
8. Get EPF Registration Number

Tips for Filling the Application

• Fill details correctly
• Ensure document clarity
• Follow on-screen prompts

Employees' Pension Scheme (EPS)

EPS is a retirement benefit scheme by EPFO launched in 1995, offering pension to employees after the age of 58.

Key Points:

• Provides monthly pension for life after retirement
• Managed by EPFO
• Ensures financial support for employee post-employment

EPF Calculation

Understanding EPF contributions helps you track your retirement savings. Here's a quick overview:

How EPF Contributions Work

Employee Contribution:

• 12% of Basic Salary + Dearness Allowance (DA)

Employer Contribution:

• Also 12% of Basic + DA, split as:
• 8.33% to Employees’ Pension Scheme (EPS)
• 3.67% to EPF Account

Example

If your Basic + DA is ₹20,000:

• Your contribution = ₹2,400
• Employer’s = ₹2,400 (₹1,666 to EPS, ₹734 to EPF)

Contribution Breakdown

These regular contributions, plus interest, build your retirement fund. EPF is a government-supported, tax-saving tool that ensures long-term financial security.

Provident Fund Payment Due Date

PF Payment Due Date:

Employers must deposit PF contributions by the 15th of the following month after salary deduction.

EPF Contribution Deadline

• Employers deduct 12% (or 10%) of employee wages for EPF.
• This amount must be paid on or before the 15th of the next month.

No More Grace Period

• Earlier, a 5-day grace period was allowed for manual delays.
• Now, with online systems, no grace period is given.
• All payments must strictly meet the 15th deadline.

PF Return Filing Due Date

• Employers must file PF returns by the 25th of every month, reporting contributions made.

Penalty for Delay in PF Payment by Employer

When an employer fails to deposit Provident Fund (PF) contributions on time, they are charged both interest and penal damages, depending on how long the delay lasts. Here's a line-wise breakdown:

• Delay Period: 0 – 2 months
  • Interest (per annum): 6%
  • Penal Damages: 5% of the due amount
• Delay Period: 2 – 4 months
  • Interest (per annum): 6%
  • Penal Damages: 10% of the due amount
• Delay Period: 4 – 6 months
  • Interest (per annum): 6%
  • Penal Damages: 15% of the due amount
• Delay Period: More than 6 months
  • Interest (per annum): 6%
  • Penal Damages: 25% of the due amount

These penalties are enforced by the Employees’ Provident Fund Organisation (EPFO) to ensure timely compliance and safeguard employee benefits.

Legal Actions and Consequences of Non-Compliance

If an employer does not deposit Provident Fund (PF) contributions on time, they may face serious legal consequences beyond interest and penalties. Here are the key outcomes of non-compliance:

• Prosecution: The employer can be prosecuted under the Employees' Provident Funds (EPF) Act for defaulting on contributions.
• Fines: The Employees' Provident Fund Organisation (EPFO) may impose additional fines depending on the severity and duration of the default.
• Attachment of Assets: In serious cases, the EPFO has the authority to seize or attach the employer’s assets to recover unpaid dues.
• Imprisonment: Continuous or willful default may result in imprisonment of the responsible company officials, as prescribed under the EPF Act.

Timely PF compliance is crucial to avoid these legal complications and ensure the financial security of employees.

Different Types of EPF Forms

EPF forms are required for various transactions under the Employees' Provident Fund (EPF) scheme. These include enrolment, withdrawals, nominations, and claims for benefits.

1. Form 2 – Nomination and Declaration Form
   This form is used by employees to nominate their family members who will receive the EPF and EDLI (Employee Deposit Linked Insurance) benefits in case of the employee’s death. It must be submitted when an employee joins the EPF scheme.
2. Form 3A – EPF Monthly Contribution Statement
   Form 3A records the month-wise contributions made by both employer and employee to the EPF account during the financial year. It serves as a yearly statement for individual employees.
3. Form 5 – EPF Membership Application
   This is used by employers to register a new employee under the EPF scheme. It includes employee details like name, joining date, and previous EPF membership (if any).
4. Form 5(IF) – EDLI Insurance Claim
   In the unfortunate event of an employee's death, this form is used by the nominee or family to claim insurance benefits under the Employee Deposit Linked Insurance (EDLI) scheme.
5. Form 10C – Pension Withdrawal or Scheme Certificate
   Used for claiming pension withdrawal benefits or obtaining a Scheme Certificate if the employee leaves the job before completing 10 years of eligible service under the EPS.
6. Form 10D – Pension Claim Form
   This form is used to apply for a monthly pension after retirement under the Employees' Pension Scheme (EPS), provided the employee has completed at least 10 years of service.
7. Form 11 – EPF Declaration Form
   Form 11 is used when a new employee joins an organization. It helps in transferring the previous EPF account to the new employer or initiating a new membership if it’s their first job.
8. Form 13 – Transfer of PF Account
   This form is used to request the transfer of EPF balances from a previous employer to the new employer when an employee changes jobs. It ensures continuity of the EPF account.
9. Form 19 – Final PF Settlement
   Used to withdraw the full EPF amount at the time of retirement, resignation, or termination. It can also be used by nominees or legal heirs in case of the employee’s death.
10. Form 31 – Partial EPF Withdrawal
    This form is used to make a partial withdrawal from the EPF account for specific needs such as housing, medical treatment, marriage, education, or emergencies.

PF for International Workers

Who Are International Workers (IWs)?

International Workers include:

• Foreign nationals working in India for an EPFO-registered employer.
• Indian citizens working in a country that has a Social Security Agreement (SSA) with India.

Rules for International Workers

Eligibility:

• Must be a foreign national employed by an EPFO-covered company in India, or an Indian working in a country with an SSA.
• Must contribute to the social security system of the home country, as per SSA.
• IWs working in India for over 6 months are eligible for EPF.

Contribution Rules:

• Mandatory Contribution: IWs (except excluded employees) must contribute 12% of total salary, with no salary cap.
• Employer’s Contribution: Employer also contributes 12% of the IW’s salary.

Exemption for International Workers

Who is Exempt?

• Workers from countries with an SSA with India.
• Must show proof of social security coverage in their home country.

Required Documents:

• Certificate of Coverage (COC): Issued by EPFO or relevant authority.
• Valid Passport: To prove nationality of SSA country.
• Social Security ID: Evidence of enrollment in home country’s system.

How Sperso Filings Helps in EPF Registration

Expert Guidance

Sperso Filings offers clear, professional advice on EPF registration requirements. Their experts help businesses understand the legal duties and steps involved in registering under the Employees' Provident Fund Organisation (EPFO).

Document Preparation & Submission

They assist in preparing and organizing all necessary documents, such as employee details, company info, and bank details. Sperso ensures proper submission to meet EPFO guidelines.

Online Registration Support

Sperso Filings guides businesses through the EPFO portal, helping complete the entire process online. They assist with form filing and troubleshoot any portal-related issues.

Compliance & Legal Advice

Post-registration, Sperso Filings helps companies stay compliant with EPF laws. They provide advice on contribution rules, filings, and documentation to ensure ongoing compliance.

Customer Support

Sperso Filings offers end-to-end customer support, resolving queries and assisting at every stage to make the EPF registration process smooth and hassle-free.