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Compliances Checklist under Employee Provident Fund Act

Narendra Kumar
16 Mar, 2023 16 Mar, 2023
Microcredit

Employee Provident Fund (EPF) is required to provide wider benefits to the workers on the completion of their employment. Every establishment with 20 or more employees should register under the EPF office. With the amendment in the rule of EPF, the limit of the minimum employee is 10 employee. The establishment has to register if it has 10 or more employee under the Employee Provident Fund. Here we will discuss compliances checklist under EPF Act.

What is the Employee Provident Fund (EPF)?

Employee Provident Fund (EPF) is a benefit for the employee during retirement. It is a social security fund created for the purpose of providing financial security and stability during retirement.

Applicability:

  • Every specified factory or establishment in which 20 or more persons are employed. With the amendment in the rule of EPF, the limit of the minimum employee is 10 employee.
  • Any factory or Establishment can also willingly cover under the Act, even if the number of employees is less than 20.

Eligibility:

Any person who is employed for work of an establishment or employed by the contractor in or in connection with the work of an establishment and drawing salary up to Rs.15,000/- p.m. The salary is calculated as Basic Salary plus Daily Allowance.

Rates of Contribution:

  • Employer – 12%
  • Employee – 12%
  • – 1.16% to Central Govt.

Insurance Scheme:

All members contributing to Provident Fund are automatically insured for their life during the Service. Employer’s Contribution to the Insurance Scheme is 0.5%. The maximum amount payable to the nominee in case of death of an employee is Rs.100000/-

READ  All you need to know about EPF Form 10C

Pension Fund:

All employees covered under the Provident Fund become members of the Pension Scheme. 8.33% of Basic Salary up to Rs.15,000/- is contributed to the Pension Scheme from employers share of contribution. A minimum period of ten years of contributory service is required to be eligible to receive monthly Pension. The full pension is payable on completion of 20 years of contributory service.

Compliance Checklist under the EPF Act

S.No. Provisions Compliance
1 Employer and Employee’s PF dues 15th of the following month
2 Payment of Pension Fund 15th of the following month
3 Payment of Insurance Fund 15th of the following month
4 Detail of employees Detail of employees enrolled as members PF fund, within 1 month of coverage in the prescribed form

5

 Nomination Form Immediately on Joining the fund in the prescribed form

6

 Addition of members Detail of newly enrolled members within 15 Days of the following month in the prescribed form

7

 Deletion of member Detail of members left service during the monthbefore21st of the following month in the prescribed form

8

 Details of contribution Detail of employees and employer’s contribution by 25th of the following month in the prescribed form

9

 Detail of wages and contribution For each member details shall be given By 30th April every year

10

 Yearly Consolidated statement of contribution To be forwarded yearly along with Form 3A

11

 Return of ownership of the establishment Within 15 days on coverage and whenever there is a change in ownership
12 Transfer of PF Form 13 needs to file

In addition to above Compliance related Insurance and pension also need to duly comply with.

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