Checklist of Employee Provident Fund (EPF) Act under Labour Compliance
Employee Provident Fund (EPF) is
required to provide wider benefits to the workers on completion of their
employment. Every establishment with 20 or more employees should register under
EPF office. With the amendment in the rule of EPF, the limit of the minimum
employee is 10 employee. The establishment has to register if it has 10 or more
employee under Employee
Provident Fund. Here we
will discuss compliances checklist under EPF Act.
What is Employee Provident Fund
(EPF)?
Employee Provident Fund (EPF) is
a benefit for the employee during the retirement. It is a social security fund
created for the purpose of providing financial security and stability during
retirement.
Applicability:
- Every specified factory or establishment in which 20 or more persons are employed. With the amendment in the rule of EPF, the limit of the minimum employee is 10 employee.
- Any factory or Establishment can also willingly cover under the Act, even if the number of employees is less than 20.
Eligibility:
Any person who is employed for
work of an establishment or employed by the contractor in or in connection with
the work of an establishment and drawing salary up to Rs.15,000/- p.m. The
salary is calculated as Basic Salary plus Daily Allowance.
Rates of Contribution:
- Employer – 12%
- Employee – 12%
- – 1.16% to Central Govt.
Insurance Scheme:
All members contributing to
Provident Fund are automatically insured for their life during the Service.
Employer’s Contribution to the Insurance Scheme is 0.5%. The maximum amount
payable to the nominee in case of death of an employee is Rs.100000/-
Pension Fund:
All employees covered under
Provident Fund become members of Pension Scheme. 8.33% of Basic Salary up to
Rs.15,000/- is contributed to Pension Scheme from employers share of
contribution. A minimum period of ten years of contributory service is required
to be eligible to receive monthly Pension. The full pension is payable on
completion of 20 years of contributory service.
Compliance Checklist under EPF
Act
S.No.
|
Provisions
|
Compliance
|
1
|
Employer
and Employee’s PF dues
|
15th of
following month
|
2
|
Payment
of Pension Fund
|
15th of
following month
|
3
|
Payment
of Insurance Fund
|
15th of
following month
|
4
|
Detail
of employees
|
Detail
of employees enrolled as members PF fund, within 1 month of coverage in the prescribed
form
|
5
|
Nomination
Form
|
Immediately
on Joining the fund in the prescribed form
|
6
|
Addition
of members
|
Detail
of newly enrolled members within 15 Days of following month in the prescribed
form
|
7
|
Deletion
of member
|
Detail
of members left service during the monthbefore21st of following month in the
prescribed form
|
8
|
Details
of contribution
|
Detail
of employees and employer’s contribution by 25th of the following month in
the prescribed form
|
9
|
Detail
of wages and contribution
|
For
each member details shall be given By 30th April every year
|
10
|
Yearly
Consolidated statement of contribution
|
To be
forwarded yearly along with Form 3A
|
11
|
Return
of ownership of the establishment
|
Within
15 days on coverage and whenever there is a change in ownership
|
12
|
Transfer
of PF
|
Form 13
needs to file
|
In addition to above Compliance
related Insurance and pension also need to duly comply with.
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