The Provident Fund (PF) is a government-sponsored savings plan designed to help employees accumulate money for retirement. Both the employer and the employee make monthly contributions to the PF account equal to a predetermined proportion of the employee's pay under this plan. This fund accrues interest and may be taken out upon retirement or in certain circumstances, such as for schooling, home purchases, or medical emergencies. In India, PF is administered by the Employees' Provident Fund Organization (EPFO). In addition to providing benefits like insurance and pensions, it guarantees workers' financial stability after retirement. PF is a safe investment because it also provides tax advantages under Section 80C of the Income Tax Act.

  • Eligibility for Provident Fund (PF) in India.

Employer Criteria:

  1. Organizations with 20 or more employees must register for PF.
  2. Smaller organizations can register voluntarily.

Contribution:

  1. Both the employer and the employee contribute 12% of the employee's salary.
  2. For organizations with fewer than 20 employees, the contribution rate is reduced to 10%.
  • Governing Body

Employees' Provident Fund Organization (EPFO) under Ministry of Labour and Employment, Government of India.

  • Act

Employees' Provident Funds and Miscellaneous Provisions Act, 1952. 

  • Steps To Register for PF Online
  1. Visit EPFO Portal:
  • Go to The EPFO Website and Select The 'Establishment Registration' Option on The Homepage.
  1. Download User Manual:
  • Download And Review the User Manual Available on The Unified Shram Suvidha Portal (USSP) To Understand the Registration Process.
  1. Sign Up On USSP:
  • Create an Account by Providing Your Name, Mobile Number, And Email Id on The Portal.
  1. Fill Out Registration Form:
  • Log In To USSP And Locate The 'Registration For EPFO-ESIC  V1.1' Tab. Choose 'Apply For New Registration,' Then Select 'Employees’ Provident Fund And Miscellaneous Provision Act 1952'.
  1. Attach Digital Signature Certificate (DSC):
  • Complete The Registration Form by Providing Employment Details, Establishment Information, And Identifiers, Then Upload Your DSC For Authentication.

Once Submitted, EPFO Will Verify Your Application, And Upon Approval, You Will Receive An EPF Code Essential For Managing Your PF Accounts.

  • Required Documents for PF Registration

The Documents Required for PF Registration Vary Based On The Type Of Entity (Proprietorship, Partnership, LLP, Company, Or Society/Trust). Below is a Checklist:

Common Documents for All Entities

  1. Pan Card Of the Entity
  2. Certificate Of Incorporation (For LLPs/Companies)
  3. Address Proof of Business Premises
  4. First Sale Bill and Purchase Bill of Raw Materials/Machinery
  5. GST Registration Certificate
  6. Banking Details (IFSC Code, Account Number)
  7. Record Of Monthly Employee Strength
  8. Salary And Wage Registers
  9. Crossed-out cheque.

Entity-Specific Documents

Proprietorship Firms

  • Proprietor’s Pan Card, Id Proof (Passport, Voter Id), And Address Proof.

Partnership Firms

  • Partnership Deed
  • Id Proofs of All Partners.

Limited Liability Partnerships/Companies

  • Memorandum Of Association (MOA) And Articles of Association (AOA)
  • Digital Signature Certificate (DSC) of Active Directors.

Societies/Trusts

  • Registration Certificate
  • Memorandum Of Association
  • Id Proofs of President and Members.

Offline Process for PF Registration

For Offline Registration:

  1. Collect Forms from An EPFO Office Or Download Them Online.
  2. Fill Out Forms with Accurate Details.
  3. Submit Forms Along with Supporting Documents at The Nearest EPFO Office.
  4. Follow Up Regularly to Track Application Status.

Key Points to Note

  1. Employers Must Register Within One Month of Employing 20 Or More Individuals to Avoid Penalties.
  2. Voluntary Registration Is Available for Establishments with Fewer Employees but Seeking PF Benefits

Forms filling process

  1. Form 5:
    1. Purpose: This form is used to report new employees joining the PF scheme.
    2. Submission: It must be submitted monthly to the EPF Commissioner's office.

      Details Required:

  • Organization’s name and address
  • Code of the organization
  • Employee details (name, middle name, date of birth, date of joining).
  1. Form 10:
  • Purpose: This form is used to report employees who have left the service.
  • Submission: It must be submitted monthly.

     Details Required:

  • Employee account number
  • Name and father/husband name
  • Date of leaving service
  • Reason for leaving.
  1. Form 3A and Form 6A:
  • Purpose: These forms are used for annual PF return filing.
  • Submission: They must be submitted by April 30th of each year.

         Details Required:

  • Form 3A: Monthly contribution details for each employee.
  • Form 6A: Consolidated annual contribution statement for each member.

Steps for PF Return Filing

  1. Registration: Ensure your establishment is registered with the EPFO and has a PF code number.
  2. Gather Data: Collect employee and employer contribution details, employee PF account numbers, and other relevant information.
  3. Prepare Returns: Use the EPFO's prescribed format or software to prepare the returns accurately.
  4. Verification: Double-check all information for accuracy and compliance.
  5. Submission: File the returns electronically through the EPFO's online portal by the specified deadline (25th of each month for monthly returns).
  6. Acknowledgement: Obtain an acknowledgment or receipt of the filed PF returns for your records.
  • Due Dates for PF.

PF Payment Due Date

Employers must deposit the combined employee and employer contributions to the EPF account by the 15th of the following month. For example, the PF contribution for January should be deposited on or before February 15th.

PF Return Filing Due Date (Monthly):

Employers must file their monthly PF returns by the 25th of the following month. For instance, the return for January should be filed by February 25th.

Annual PF Return Filing Due Date:

The annual PF return, which covers contributions made throughout the financial year, must be filed by April 25th (or sometimes April 30th as per some sources) of the following financial year.

  • Penalty

The penalty for employers who default on Provident Fund (PF) contributions has recently been revised. As of June 2024, employers who fail to deposit contributions on time are liable to pay a penalty of 1% per month or 12% per annum for outstanding contributions under the Employees' Provident Fund (EPF).

Additional Penalties and Legal Consequences

Employers who default on contributions may also face legal consequences, including imprisonment and fines under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. For instance, if an employer deducts employee contributions but fails to deposit them, they could face imprisonment for up to three years and a fine of up to ₹10,000