Download
1 / 6
60 likes | 79 Views
EPF Registration is mandatory for all those organizations that have 20 or more employees. Such organizations are required to contribute a fixed amount towards Provident Fund out of employee salary. The fixed amount that the employer is required to make is 12% of the Basic Salary plus DA and RA.
E N D
Overview of EPF Registration Employee Provident Fund (EPF) is a scheme that offers retirement benefits to all the salaried employees irrespective of working in Government or Public or Private Sector organizations. The term, “employee” includes the range starting from experienced professionals to Security Guards, Housekeeping, etc. However, an apprentice, intern, and a migrating employee are excluded from the ambit of the EPF Scheme. EPF registration is regulated and administered by the EPFO (Employee Provident Fund Organization).
What is Employee Provident Fund? Employees Provident Fund is a government-based scheme under the Employee Provident Funds and Miscellaneous Provisions Act, 1952. It acts as a retirement benefit to an employee which is provided the organization. Any company having more than twenty employee working is mandatory required to obtain EPF Registration under EPF Act.The objective behind the EPF Scheme is to mainly maintain a healthy relationship between the employer and employee. Employee-Employer bond.
Who are all eligible to obtain EPF Registration? Any Establishment which is employing more than twenty employees during any time in the previous financial year. Any Factory irrespective of the industry, having more than twenty employees during the previous financial year. c) The Central Government at any time can ask an establishment to obtain compulsory EPF Registration irrespective of the employee count. The same is possible only after providing two months’ notice to that concerned establishment. Such an establishment or company is then required to get themselves registered under the EPF scheme on an immediate basis.
Benefits of EPF Registration Risk Coverage The most significant benefit annexed with the Provident Fund Registration is that it covers the risk of both employees, and their dependents. The term risk means the situation concerning the employee’s retirement, illness, or death. Uniform Account One of the major facets of a PF Account is that it is both continual and transferable. It means that the same account can easily be carried forward to any other place of employment. EDLI Scheme EDLI is the acronym form for the Employee Deposit Linked Insurance Scheme. All the PF account holders are eligible under this scheme. This scheme requires a 0.5% deduction in salary. Long-Term Goals The amount saved in the PF account helps the employee in fulfilling his or her long-term goals like marriage or higher education or any other situation that needs the urgent availability of funds, as the amount available in the PF account often comes handy during these situations. Includes Pension The employer is required to contribute some proportion (specifically 12% of the employee’s monthly salary) to the EPF fund together with the employee. Moreover, out of the total contribution made by the employer, 8.33 percent is transferred to the EPS (Employee Pension Scheme). This will help the employee in saving the right amount of pension for his retirement.
