PF Registration

PF Registration

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 controls the Employees Provident Fund (EPF) and is regulated by the Employees Provident Fund Organisation (EPFO). The registration is mandatory for all the establishment running with a minimum of 20 employees and some exemption for firms running with less than 20 employees. The employee along with the employee has to pay a certain amount to the PF. On the retirement or during the resignation, the employee will be received with this collected amount including the employer’s contribution with interest.

How?

The employer and the employee pay an equal amount to the PF contribution which is 12% of (basic pay+ Dearness Allowance+ Retaining Allowance). An organization with less than 20 employee or which runs under certain other condition, the EPFO rules deducts the contribution from the employer and employee to about 10%. Mostly the contribution is calculated from the basic salary of the employees in private sector.

Pension Scheme

A total of 8.33% from the employer’s contribution is forwarded to the Employees Pension Scheme, calculated at Rs.5000. For an employee with a basic pay Rs.15000 or more should contribute about Rs.1250 to the EPS scheme. An employee with a basic pay less than Rs.15000, 8.33% of the salary will be paid to the EPS. During the retirement or resignation, the employee will receive the full amount contributed along with the employer’s contribution.

Breakup in PF Contribution

A contribution of 3.67% towards Employees’ Provident Fund
A contribution 1.1% towards EPF Administration Charges
A contribution 0.5% towards Employees’ Deposit Linked Insurance
A contribution 0.01% towards EDLI Administration Charges
A contribution 8.33% towards Employees’ Pension Scheme