The term EPF stands for employee provident fund. Normally, most of the people in India known as PF; means provident fund. EPF is a retirement benefits saving plan where both employer and employee contribute a certain percentage of the salary. In EPF scheme, the employee has to pay certain contribution and the same equal contribution is paid by the employer. And for this, the employer takes the EPF registration for his/her employee. The employer and employee are solely responsible for this to make deposit the amount in PF account.
What is PF Registration?
The process of PF registration can be defined as one whereby the employers register its details and the names of their employees with the Employee’s Provident Fund Organization. This is done so that money can be deducted from their salaries and deposited with the organization. The employers also need to contribute the same amount that they are deducting from their employees for such purposes.
Who is Eligible for EPF Registration?
The organizations or companies or businesses or industries are eligible for PF registration at the time when they satisfy the following criteria:
Total employee strength of company is 20 or more.
Central Government defines the class of organization who’ve below 20 workers. If it is required, notify them for EPF employer registration.
The employer and employee of a company must mutually agree to apply for PF
Every employee is eligible for PF from the beginning of his/her employment, but the employer has the responsibility of PF contribution and deduction.
Why do Employers have to Register for EPF?
If an employer has more than 20 people working in the organization, it is compulsory to register for EPF. It has to make regular contributions to the EPF. The way it is done has already been described in the paragraph above.
In case an employer does not comply with this obligation or misrepresents data to avoid paying EPF, it would have to pay a fine of 5000 rupees. Once a company has registered with the Employee’s Provident Fund Organization (EPFO), it has to follow some rules and regulations as well. These rules and regulations have to be followed either monthly or yearly as has been mentioned in the act.
When PF Registration is Mandatory for Employers?
It has already been said that when there are 20 or more employees in an organization, the employer has to register for EPF. This is applicable to all kinds of businesses in India. Apart from that, the central government also has some rules and regulations in this regard.
If it feels that they apply to your business you may have to register for EPF. In such cases, the government would serve business a 2-month notice irrespective of how many employees company in question has. In cases, it would have to register EPF online in India as soon as it receives the notice.
What are the Benefits of EPF Registration?
The money that people get from their provident funds helps them when they retire. The sum also comes in handy in case of emergencies such as illness, disability, and death of the employee. It can cover most of the risks that the employees may face in this regard.
The employees can also use the money that they have accumulated in such a fund for long-term plans such as the marriage of their children or making a new house for one. These PF accounts are uniform. This means that even when you change your employers you can always have the same account throughout.
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