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Employee’s Provident Fund (EPF)
Workers Provident Fund (EPF) is a plan constrained by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is directed under the umbrella of Employees’ Provident Fund Organization (EPFO). PF enrollment is material for all foundation which utilizes at least 20 people, subject to specific conditions and exclusions regardless of whether they connect under 20 workers. Under EPF plot, a representative needs to pay a specific commitment towards the plan and an equivalent commitment is paid by the business. The worker gets an aggregate sum including self and business’ commitment with interest, on retirement or acquiescence.
Who is Eligible for PF?
It is required that representatives’ drawing not as much as Rs 15,000 every month, to become individuals from the EPF. According to the rules in EPF, worker, whose ‘essential compensation’ is more than Rs. 15,000 every month, at the hour of joining, isn’t requried to make PF commitments. In any case, a worker who is drawing a compensation of more than Rs 15,000 can at present turn into a part and make PF commitments, with the assent of the Employer and Assistant PF Commissioner.
Amount of PF Contribution
The PF commitment paid by the business is 12% of (fundamental compensation + dearness stipend + holding recompense). An equivalent commitment is payable by the representative. In the event of foundations which connect under 20 workers or meet certain different conditions, according to the EPFO rules, the commitment rate for both representative and the business is limited to 10%. For most representatives working in the private area, it’s the essential compensation on which the commitment is determined.
Employees Pension Scheme
Out of managers’ commitment, 8.33% will be directed to Employees’ Pension Scheme, which is determined at Rs 15,000. The sum steered to EPS would be Rs. 1250 for workers whose fundamental compensation adds up to Rs at least 15,000. Nonetheless, in the event that the essential compensation is not as much as Rs 15000, at that point 8.33% of such sum would be directed to EPS, the equilibrium will be held in the EPF plot. On superannuation, the worker would get the full offer in addition to the equilibrium of manager’s offer saved for his credit in EPF account
Breakup of PF Contribution
We arrive at the rate of 12% based on the following sub-division:
3.67% of contribution towards Employees’ Provident Fund
1.1% of contribution towards EPF Administration Charges
0.5% of contribution towards Employees’ Deposit Linked Insurance
0.01% of contribution towards EDLI Administration Charges
8.33% of contribution towards Employees’ Pension Scheme
- Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution.
- The Employer Share is the difference between employee Share (payable as per statute) and Pension Contribution.
- Monthly payable amount liable to EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs. 500/- is payable.
- If the establishment has no member in the month, the minimum administrative charge will be Rs. 75/-
- Monthly payable amount under EDLI Administrative charges is rounded to the nearest rupee and a minimum Rs 200/-is payable.
- If the establishment has no member in the month, the minimum administrative charge will be Rs. 25/-
- In case, establishment is exempted from PF Scheme, Inspection charges @0.18%, minimum Rs. 5/- is payable in place of Admin charges.
- In case the Establishment is exempted under EDLI Scheme, Inspection charges @ 0.005%, minimum Re 1/- is payable in place of Admin charges.
Due Date for PF Filing with EPFO
The employer before paying the employees salary must deduct the employee’s contribution from his wages. Then the employee portion and employer portion are payable to the EPFO, within 15 days of the close of every month.
Documents Required for PF Registration
- Workers Provident Fund (RPF) is a plan constrained by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is directed under the umbrella of Employees’ Provident Fund Organization (EPFO). PF enlistment is pertinent for all foundation which utilizes at least 20 people, subject to specific conditions and exclusions.
Applicability of PF Registration
PF enlistment is required for all foundations with at least 20 people. A few foundations having under 20 workers would likewise be needed to acquire PF enrollment. All worker become qualified for a PF directly from the beginning of business and the onus of derivation and installment of PF is with the business. The 12% pace of PF commitment should be similarly isolated between the worker and manager. In the event that the foundation houses under 20 workers, the rate for PF allowance is 10%.
Documents Required or PF Registration
Based on the type of entity seeking PF registration, the list of documents required for PF registration would vary as under:
- Name of the applicant
- Pan card of proprietor
- Id proof of the proprietor like Driving license/Passport/Election Card
- Address proof of proprietor.
- Address proof for the premises.
- Complete details of the applicant with their residential address and telephone number
For Partnership Firms / LLP / Company
- Name of the partnership firm or LLP or Company
- Certificate of Registration Firms in case of Partnership firm. Incorporation Certificate in case of LLP or Company.
- Partnership deed in case of partnership firms or LLP.
- Id proof of Partners –Pan card /Election Card / Passport/Driving license in case of Partnership Firm or LLP. ID proof of Directors in case of company.
- List of all partners with telephone number and address proof of all partners in case of Partnership Firm or LLP. List of all Directors with contact details in case of Company.
- In case of Society, Trust etc, Registration of the organization needs to be done with concerned authority.
- Certificate of incorporation of society/trust.
- Moa and Bye Laws of society and trust.
- Id proof of president and all members of society
- Complete details of president and all members with their complete address and telephone number.
- Pan card of society/trust
Common Documents Required for All Entities
- First sale bill.
- First purchase bill of raw material and machinery. GST Registration Certification, if registered under GST.
- Name of the bankers, address of the bank.
- Record of a monthly strength of the number of employees.
- Register of salary and wages, all vouchers, all balance sheets from day one to current date of provisional coverage.
- Date of joining of employees, fathers name and date of birth.
- Salary and PF Statement.
- Cross cancelled cheque.