EPF Scheme – An Overview

The Employees’ Provident Fund (EPF) Scheme is a government-backed social security program designed to help employees build long-term savings for retirement. A fixed portion of the employee’s salary is deposited into the PF account every month, creating a financial cushion that can be accessed after retirement or during certain eligible situations.

• Both employer and employee contribute 12% of the employee’s basic salary + DA.
• From the employer’s contribution, 3.67% goes to the EPF account and 8.33% is directed to the Employees’ Pension Scheme (EPS).
• Employees can withdraw their EPF balance at retirement (58 years), after being unemployed for two months, or if the employee passes away before retirement age.

PF Registration
PF registration is the process where an employer enrolls their establishment under the Employees’ Provident Fund Organisation (EPFO) to participate in the PF scheme.

Key points:
• Registration is mandatory for establishments employing 20 or more workers.
• Establishments with fewer than 20 employees may also register voluntarily.
• After registration, the employer receives a unique PF code, used for filing returns, submitting contributions, and managing PF-related transactions.
• Employers with PF registration must file their PF returns every month to remain compliant.

PF Return Filing
PF return filing involves submitting monthly information to the EPFO regarding employee contributions, employer contributions, employee details, and PF account numbers.

Important points:
• Filing is compulsory for all employers registered under PF.
• Returns must be filed every month, by the 25th.
• Payments and filings must be completed before the due date to prevent penalties.
• Employers reported details such as contribution amounts, employee coverage data, and PF account information.

Who Must File PF Returns?
Any establishment covered under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 must submit PF returns. This includes:

• Employers with 20 or more employees (mandatory coverage)
• Establishments with fewer than 20 employees that have opted for voluntary PF registration

1. Employer’s contribution details to EPF

A record showing the amount contributed by the employer toward each employee’s Provident Fund account every month.

2. Employee’s contribution details to EPF

A document reflecting the portion of salary deducted from each employee’s wages and deposited into their PF account.

3. Copy of the ECR (Electronic Challan-cum-Return)

A mandatory online statement filed monthly that contains employee-wise contribution details and acts as proof of PF payment.

4. Employee UAN (Universal Account Number) details with KYC compliance

A unique identification number assigned to each employee for tracking PF accounts across jobs, verified with KYC documents such as Aadhaar, PAN, and bank details.

5. PAN Card of the Proprietor/Partner/Director:

Serves as proof of identity and helps in verifying the business entity during registration.

6. Aadhaar Card of the Proprietor/Partner/Director:

Acts as personal identification proof for the authorized signatory.

7. Digital Signature of the Proprietor/Partner/Director:

Required for online submission and verification of the EPF registration form.

8. Shop and Establishment Certificate / GST Certificate / Any Government-Issued License:

Serves as legal proof of business registration and operational validity.

9. License Proof Issued by the Identifier/Licensing Authority:

Validates that the business is authorized and holds a legitimate operating license.

● Retirement Benefits:

PF helps employees build a secure financial reserve for their post-retirement life. A portion of the salary is saved every month, ensuring long-term financial stability.

● Financial Security:

PF acts as a strong social security measure. It provides financial support to employees and their families during emergencies, unemployment, or unexpected situations.

● Compounding Growth:

The amount saved in PF grows steadily over time due to interest and compounding, helping employees accumulate a significant corpus without extra effort.

● Legal Compliance:

PF registration is mandatory for eligible employees. Being enrolled ensures compliance with government regulations and secures rightful PF benefits.

● Improved Job Opportunities:

Many employers prefer candidates who already have an active PF account, as it simplifies onboarding and reflects the candidate’s professionalism and stability.