PROVIDENT FUND (PF) REGISTRATION

Categories of individuals recognized as employees

Full-Time Workers
Individuals who have maintained steady employment with an organization are classified as full-time employees. The nature of this relationship is determined by the existing terms between the employer and the employee, with the appointment letter often serving as confirmation of employment status.

Part-Time Workers
Those who engage in part-time work for an establishment are designated as part-time workers and are required to register with the EPFO. Unlike full-time employees, part-time workers log fewer hours each week.

Work-From-Home Workers
Employers may also register employees who work remotely for a designated period for EPF registration online.

Contractors
Contractors are specialized personnel engaged to complete specific projects based on the needs of the organization. Organizations employing independent contractors are obligated to apply for PF online.

Consultants
Consultants are distinguished based on their expertise level. They are neither contractors nor part-time workers but provide consultancy services to an establishment for a defined duration.

Freelancers
As per the latest amendments in the Social Security Code introduced in September 2020 by the Government of India, freelancers are also considered under the definition of employees. Freelancers, including independent contractors, are eligible for services offered under pf registration online.

Documents required for PF Registration

• Company name and address

• Details of the head office and branches

• Date of incorporation of the company

• Total number of employees

• Type and nature of business activities

• Information about directors or partners

• Basic information about employees

• Details of employees' salaries

• Company bank account information

• PAN card details

How to Apply PF Online?

Online PF registration can provide significant support, safety, and assurance for employees, offering them a sense of financial security. This system is managed by the Employees’ Provident Fund Organization (EPFO), renowned as one of the largest and most well-known Social Security Organizations in India, handling vast financial transactions daily. The process of applying for PF online is straightforward, especially with the assistance of a professional.

At Prayog Enterprise, we ensure that you navigate the process of EPF Registration online without getting entangled in legal complexities. Once we receive the necessary information and documents, our experts meticulously fill out the forms and submit them promptly. Our team is responsible for follow-ups and ensures that you receive your PF number as quickly as possible.

Contribution towards PF

Employers must secure PF registration within one month of their workforce reaching the requisite number; failure to comply will result in applicable penalties. Once registered, an establishment remains subject to the provisions of the Act even if the number of employees subsequently drops below the required threshold.

Employers are required to contribute 12% of the sum of Basic Salary, Dearness Allowance, and Retaining Allowance. Employees must make an equal contribution. For establishments with fewer than 20 employees, EPFO regulations dictate that the contribution rate for both employers and employees is reduced to 10%. Generally, in the private sector, the entire contribution is calculated based on the basic salary.

Compliances for PF Registration

Once an establishment is registered with the EPFO, it is required to comply with certain legal obligations on a monthly or annual basis:

• Monthly returns must be submitted electronically by uploading the ECR (Electronic Challan-cum-Return) sheet using the establishment's login credentials.

• These online returns should be submitted by the 15th of the month following the reporting period.

• The ECR sheet, which is downloadable in XML format from the EPFO, will list every employee who was registered with the establishment during the month for which the return is filed, by name and UAN (Universal Account Number).

• Prior to uploading for return filing, the XML sheet must be converted into a file.

• The return submission process is completed by integrating online payment gateways.

Start PF Registration

EPF Charges

• The contributions for the employee share, pension, and EDLI (Employees' Deposit Linked Insurance) are rounded to the nearest rupee for each employee.

• The employer's share consists of the sum of the employee share plus the pension contribution.

• The minimum monthly contribution for EPF administrative costs is ₹500, and this amount is rounded up.

• If no members are registered during the month, the institution is subject to a minimum administrative fee of ₹75.

• EDLI administrative charges require a minimum payment of ₹200, with the amount rounded up to the nearest rupee.

• In months where there are no members, a minimum administrative fee of ₹25 for EDLI is applicable.

• If the establishment is exempt from the PF system, administrative fees are substituted with inspection fees of 0.18%, with a minimum of ₹5.

• For establishments exempt from the EDLI plan, administrative fees are replaced by inspection fees, which are a minimum of ₹1 at 0.005%.

Due Date for PF Filing

Before disbursing employee salaries, the employer is required to withhold the employee's contribution to the provident fund. Both the employer and employee contributions must then be submitted to the EPFO within 15 days after the end of each month.

The PF Registration offers remarkable returns compared to other debt instruments. It is backed by a sovereign guarantee, and the interest earned is tax-free. The PF enjoys EEE (exempt, exempt, exempt) status, meaning contributions are deductible from taxable income. It's rare to find debt securities that offer such high returns combined with robust security and reliability. Therefore, to avoid the temptation of premature withdrawal, it is advisable to transfer the PF account when switching jobs.