Employees Provident Fund

Employees Provident Fund

What is Employees Provident Fund (EPF)

For nearly all people working in Government, Private or Public sector organizations, EPF is one of the main platforms of savings in India. Employees Provident Fund Organization (EPFO) of India implements this. Employees Provident Fund is done through MyTaxAdvisor.

Companies which have employee strength of 20 or more should be registered with PF Department. Contract employees like housekeeping, security or other contractual workers in the business, are included in that capacity of 20. Companies without the endorsed number of employees, willing to register themselves to provide the advantages of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office. Registration is to be done within one month from the date of hiring 20 employees. Any delay may result in a penalty.

Eligibility for EPF Registration for Indian employers

To be eligible for PF Registration, an organization has to fulfill the following criteria:

Eligibility for Employees Provident Fund

  • An employee in the employment at the time of joining, getting wages up to Rs. 15,000/- is required to become a member.
  • Under this act, Wages implies and includes Basic + Dearness Allowances, Cash value of food concession as well as retaining allowances, if any.

Benefits of EPF Registration Online

What is the Rate of PF contribution

Both the employee and employer contribute 12% of the salary. The employers part consists of 12% of basic wages + dearness allowance + retaining allowance. If the number of employees is less than 20 in the firm, then the PF rate is 10%.

12% of the basic salary, that is deposited in provident fund account is contributed by the employers, whereas out of employee contribution of 12%; 3.67% is contributed to provident fund and 8.33% is submitted in Pension scheme.