Governance: Employee provident fund is governed by THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952.
Applicability and requirements: This act applies to every establishment which is a factory (except the state of Jammu and Kashmir) and employing 20 or more employees whether employed by him directly or by or through a contractor. Any organization can apply it for voluntary also if it does not fall under mandatory provisions. PF covers three main schemes named:
- 1. The Employees Provident Fund Scheme
- 2. The Employees Family Pension Scheme
- 3. The Employees Deposit-Linked Insurance Scheme
Below we are talking about the most popular scheme i.e; Employees Provident Fund Scheme:
PF contribution paid by employer varies from 10% to 12% of the basic wages, dearness allowance and retaining allowance. Employee pays amount equal to the contribution made by employer.
Higher Contribution :
Employee can pay voluntary higher amount of contribution to the fund. It is known as Voluntary provident fund and will be accounted separately.
Employer can register online by going to this link https://www.epfindia.gov.in/site_en/index.php
Documents required for registration:
Following documents will be required in case of Company/LLP
Following documents will be required in case of Proprietorship firms:
- 1. Certificate of incorporation
- 2. PAN of directors
- 3. DSC of directors
- 4. List of directors containing address and id proof
- 5. Memorandum of association and Article of association
- 1. ID Card
- 2. PAN Card
- 3. Residential address proof
- 4. Premises address proof
Legal Compliances: PF return is due on 25th of each month for the previous month. Annual return is due on 25th April for the year ending on 31-March. It is obligatory for every entity to file return on time, who are registered under this act.
Withdrawal from EPF account:
To withdraw one has to retire from service after attaining 55 years of age
What if some one has quit job before attaining the age of 55 years?
In such cases, an employee can withdraw the full PF balance if he is out of employment for 60 or more days.
Procedure to withdraw PF balance:
Earlier employer signature was required to withdraw PF amount, but now one can fill UAN based form 19 to withdraw. All those subscribers whose UAN is activated and seeded with the KYC details like bank account and Aadhaar number, can avail the facility of UAN based form 19.