Employees Provident Fund (EPF) is a popular savings scheme introduced and regulated by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Any firm that has 20 or more employees needs to have PF registration. However, for a company that has less than 20 employees, PF registration is optional. The concept of PF is to create a habit of saving money to build a retirement corpus. The PF contribution paid by the employer is 6% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In the case of establishments that engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and employer is restricted to 10%.
Individuals can apply for various online services of EPF India by connecting to the official portal. In the digital era, DialmyCA can help you with registration at the most affordable rates.
The EPF scheme extends benefits to the employees and assures them financial stability and security.
The PF scheme has pre-fixed interest on the deposit held by EPF India and the rewards are given at maturity to ensure growth in employees’ fund and increase their capital.
The Employee Provident Fund helps the employees to create a smooth retirement plan for them and also deal with the uncertainties of life with ease. With the EFPF fund, any emergency can be dealt with ease. PF can be withdrawn for house purchase, medical reasons, marriage or education of family members.
Under Section 80C of the Indian Income Tax employees who have contributed to PF are eligible for tax redemption. Also, the earnings generated through EPF schemes are exempted from taxes.
8000+ GST 18%
90000+ GST 18%
A. Employees from both public or private sector with 20 or more employees need to get registered with the PF Department. The application must be filed within one month of reaching the employee count of 20. Once the employee becomes an active member of the scheme they become eligible for various insurance and pension schemes.
Q. How much time does the Employee Provident Fund Registration process takes?
A. with the help of a competent professional the complete task of EPF registration is done within a week. However, DialmyCA doesn’t disappear after registration rather also supports the employees even when they need to withdraw the fund in case of retirement or any unforeseen situation.
A. There need to be 20 employees in the entity including all permanent, semi-permanent and other contract employees like housekeeping, security or other contractual workers in the business.
Q. Under what circumstances can EPF be withdrawn?
A. EPF is deposited to give a sense of safety and security to the employees and thus an individual can withdraw the EPF under the following circumstances:
a. on retirement
b) if the period of unemployment extends beyond two months.
c) while changing profession the duration without a job should be more than two months
d) for circumstances like marriage, higher education, building a house, buying land. Repayment of house loan, or renovating housing property.
A. in the digital era things have simplified and there is no need for the employee to be present in person during any stage. If you hire a professional like DialMyCA then the process becomes simplified and hassle-free.