An essential tool that aids the saving of an individual is the Employees Provident Fund (EPF).
Employees Provident Fund Organisation (EPFO) of India manages the Provident Funds of the Employees under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952. Once an institution employs twenty or more employees, it becomes necessary to get a PF Registration. The PF fund contributes 12% of basic salary plus DA plus retaining allowance by employee and employer.
We at MKDA assist you in registering PF as per individual needs.
EPF registration is mandatory for the following establishments -
The employer should obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the Act's purview even if the employee strength falls below the required minimum.
The Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months' notice for compulsory registration.
Where the employer and majority of employees have agreed that the provisions of this Act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or any subsequent date specified in the contract.
Some establishments having less than 20 employees would also be required to obtain PF registration, but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment. The responsibility of deduction & payment of PF lies with the employer.
The PF contribution of 12% should be divided equally between the employer and employee. The employer's contribution is 12% of the basic salary. If the establishment has employed less than 20 employees, the PF deduction rate will be 10%.
For LLP and Companies:
For Partnership and Proprietorship companies:
Employee Provident Fund is the complete form that is commonly known as EPF. It is a scheme under the Employees Provident Funds and Miscellaneous Provision Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organization (EPFO), one of the World’s largest Social Security Organizations in terms of clientele and volume. It acts as a protective shield as a steady income source after the employees retire from the organization.
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Rate of Contribution Under ESI:
The latest revision is w.e.f. 01.07.2019, and the rates are as follows: Employer's Contribution – 3.25% of the wages paid/payable. Employee Contribution – 0.75% of the wages paid/payable.
The Employees' Provident Fund Organization (EPFO) has decided to retain the EPF interest rate at 8.5 percent.
Let us help you get your year started right with a fresh set of eyes on your books.