EPF stands for the Employees' Provident Fund, which is a social security scheme available to employees in India. It is managed and administered by the Employees' Provident Fund Organization (EPFO), a statutory body under the Ministry of Labour and Employment, Government of India.
Under the Employees' Provident Fund (EPF) scheme in India, both the employer and the employee contribute 12% of the employee's PF wages.
Out of the employer's share of the contribution
8.33% is directed towards the Employees' Pension Scheme (EPS). This portion of the contribution is meant to provide a pension to the employee after retirement.
The remaining 3.67% is contributed to the EPF scheme itself. This portion of the contribution is accumulated in the employee's EPF account, which serves as a long-term savings fund for their retirement.
In addition to the above contributions, the employer also makes the following payments:
0.50% of the wages goes towards the Employees' Deposit-linked Insurance Scheme (EDLI). This scheme provides life insurance coverage to the employee in case of their untimely demise while employed.
The employer was required to pay an administrative charge of 1.10% of the total wages to the Employees' Provident Fund Organization (EPFO). These charges were for the administration and management of the EPF scheme.
The employer was also liable to pay an administrative charge of 0.01% of the total wages for the Employees' Deposit-linked Insurance Scheme (EDLIS). This charge covered the administrative costs associated with managing the EDLIS scheme, which provides life insurance coverage to the employees.
EPF interest rate
The EPF interest rate, currently 8.15%, is applied to the total balance in an EPF account at the end of the financial year. This interest amount is calculated based on the contributions made by the employer and employee throughout the year.
EPF Applicability
The following eligibility criteria :
- Organizations with 20 or more employees are required by law to register for the EPF scheme.
- Organizations with fewer than 20 employees can voluntarily join the EPF scheme.
Process to register with EPFO
Here's a step-by-step summary of the process to register with EPFO (Employees' Provident Fund Organization) via the Unified Shram Suvidha Portal (USSP):
- Visit the EPFO website and click on the "Establishment Registration".
- This will redirect you to the USSP sign-up page. Click on the "Sign Up" button.
- Provide all the required details and complete the sign-up process.
- Log in to the USSP and select the "Registration For EPFO-ESIC" button on the left-hand side of the screen. Choose the "Apply for New Registration" button on the right side of the screen.
- Select the "Employees' Provident Fund and Miscellaneous Provision Act, 1952" and click on "Submit."
- Fill in the "Establishment Details" section and click on "Next."
- In the "eContacts" section, fill in the details and click on "Add." Then click on "Next."
- In the "Contact Person" section, add the address by clicking on "Add/Edit Address of Primary Manager."
- Next, add the email by clicking on "Add/Edit Econtact of Primary Manager."
- Click on "Add" to enter the details of the "Other Contact Person" and click on "Next."
- Enter the required details in the "Identifiers" section and click on "Add." Then click on "Next."
- Fill in the "Employee Details" section and click on "Add" to add employee details.
- Enter the details in the "Branch/Division" section and click on "Add." Then click on "Next."
- In the "Activities" section, provide the NIC code, primary business activity, nature of work, and subcategory of nature of work. Click on "Next."
- In the "Attachments" section, upload all the required document attachments by clicking on "Upload" and then "Save."
- Click on the "Digital Signature" button on the next page and attach the Digital Signature Certificate.
- Once the DSC is uploaded, you will receive a successful completion message for the registration form.
- You will also receive an email from the Unified Shram Suvidha Platform confirming the completion of EPFO registration.
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