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Employee Provident Fund (EPF) Act Checklist under Labour Law



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.


Comments

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  2. Hi,
    Interesting article! Thank you for sharing them! keep sharing .if you want Top 10 auditors in bangalore Top 10 audit fims in bangalore click on it

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  3. Thanks for this information for PF Withdrawal Rules, What is Processes and Problems. Employee Provident Fund (EPF) is a scheme regulated under the purview of the Employees’ Provident Fund Organization (EPFO). Please write for PF Return online in India. Thanks for sharing such a great article with us.

    ReplyDelete
  4. The information you discussed above is very useful and interesting. Thanks for sharing such good post

    EPF registration online in India

    ReplyDelete
  5. Employees contribute 12% of their salary towards the fund, while employers contribute an additional 12% (or more, depending on the organisation). The EPFO invests these funds in a variety of assets, including government securities, corporate bonds and equity. Thank you for sharing this blog. It is very helpful. To know more visit: epf employer portal

    ReplyDelete
  6. Need limited Online PF Registration in Delhi? Taxgoal offers expert services for hassle-free PF registration. Contact us today to ensure compliance and manage your employee benefits efficiently.

    ReplyDelete

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