Compliances Checklist under Employee Provident Fund Act

16 Mar, 2023

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 What is the Procedure of PF Balance Check

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