Tuesday, 3 July 2018

Social Security to Employees Through EPF

Nowadays with the dynamic world apart from paying your employee in monetary terms, the employer is expected to obligate in many other terms like providing a good, hygienic, safe, insured environment to the employees at workplace safety and social security, in the long run, it results into the building of a stronger employee-employer relationship.  

The Social security I can be provided to the employees by way of EPF (Employee Provident Fund). It is mandatory for an employer to register itself under EPF when it employees more than 20 employees under him either on a contractual basis or on rolls or in another format within one month of attaining such figure i.e. 20 employees. Note an employer can register under EPF for having employees even below than 20 in numbers.
For co-operative society, the limit of employees for mandatory registration is 50.

Note in cases where the employees limit goes below the statutory limit (20 and 250 as mentioned above), nothing is required to be done, the same EPF shall prevail.


The rule for EPF:

12% of basic wages plus dearness allowance and retaining allowance is the contribution paid by the employer. The employee also contributes the same amount.

Note that where employees in number are less than 20 or in line with applicable rules as per the EPFO rules, the contribution rate for both employee and the employer is limited to 10 percent.

What is the Registration Procedure?

Form: EPF registration form can be downloaded from the website of the Employees’ Provident Fund Organization (EPFO).

Mode of Registration: Both online and offline.

Website: E-Sewa portal-https://unifiedportal-mem.epfindia.gov.in/memberinterface/

What are the documents required for registration?
  • Name and address of the company
  • Head office and branch details
  • Mention date of incorporation/registration of the company
  • Fill up details of employees – total employee strength
  • Activity the business/enterprise is involved in – i.e. manufacturing, production, service, etc.
  • Legal Status of a company-Private firm/Public company/ Partnership/Society etc.
  • Owner details pertaining to designation/address/other details of Directors and partners
  • Particulars related to wage component of employees, i.e. total wage disbursed during a month
  • Company Bank details
  • PAN details
  • Basic details of the employee (name, date of joining, salary, etc.)
  • A form titled “Proforma for Coverage” needs to be filled.


For online registration of EPF following is required to be uploaded:
  • Copy of partnership deed if the company is a registered partnership firm
  • A copy of the Certificate of incorporation for a Public or Private Limited Company. This should be issued by the Registrar of Companies
  • Societies should furnish a copy of their registration certificate
  • Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
  • Societies should furnish a copy of the rules and objects of the society
  • All legal documents which might be required under the Income Tax Act
  • PAN details of the company
  • Partition deed
  • Proof of incorporation – first sales invoice/ license issued by competent authorities
  • Salary details of employees
  • Balance sheet details

Once you submit the online application, following the instructions below:
  • SMS notifying about the allotment of the code number, along with a login ID and password will be received on the registered number.
  • Login through the Employer Portal 
  • Start remittance 
  • The  Provident Fund Code Number Intimation Letter can be download on login
  • The code allotment letter will have all the documents mentioned in the application printed on it and Form 5A and a blank specimen signature card. 
  • Download and send the code letter to the EPFO Office with copies of all the above-stated documents and a copy of the completed application.  

Note: Have all original documents handy for verification by the EPFO Authorities during post coverage inspection.

No comments:

Post a Comment