As an employer, there are certain rules and regulations by the Employee’s Provident Fund Organisation, that must be adhered to in order to run smooth business. EPFO has put forth these so that the employers ensure a decent life for their employees, post-retirement.
These EPF rules for employers consists of employer’s contribution towards EPF, timely remittance of EPF dues (via ECR), generating UAN for new employees, updating employee’s nominee details, ensuring that the employee’s UAN is KYC compliant and more. Let’s know about these in detail here.
Basic Responsibilities of EPF “Included” Establishments
If yours is a new establishment:
- Registration of establishment with EPFO as soon as the no. of employees reach 20 or more
- If total strength is not crossing 20 employees, establishment registration is voluntary
- Get your establishment’s PAN updated and furnish the same at the time of registration
- Registration Process: EPFO official website > Registration Establishment > Sign Up
If yours is an existing establishment:
- Keep establishment particulars updated (using FORM 5A)
- To avail online services, register digital signature
Also Read: How to Register an Establishment with EPFO?
EPF Rules for Employers w.r.t. Contributions
With respect to the EPF contribution, the following are employer responsibilities which are to be fulfilled:
- Deducting employee’s contribution from their basic salary + DA, every month
- Matching the employee’s contribution, every month
- Submitting ECR
- Ensuring administrative charges are paid, wherever applicable
- All these payments are to be completed by the 15th of every month
- In case of contractual employees, ensuring that the contractor(s) pay EPF contribution every month
- If payments are not done by contractor, deduct the required amount from payments to be made to the contractor and pay the amount to EPFO – as per Section 8A of the EPF & MP Act, 1952
Also Read: All about EPF and EPF Contributions
UAN-Related EPF Rules for Employers
The following rules related to the employee’s UAN must be adhered to by all the employers:
- Ascertaining that all new employees have UANs
- Ascertaining that UAN of every employee is KYC-compliant
- Updating nominee and family details of every employee
- If KYC is not done, collect documents from employees and upload the same at the EPFO website
- In case of employees under contract, ensure payment of EPF dues in time by the contractor
- If dues are not paid by contractor, deduct the required amount from dues to be paid to the contractor
Basic Responsibilities of EPF “Excluded” Establishments
If the establishment is exempt from EPFO, the following points must always be in-check:
- Contractual employees must be enrolled under the EPF & MP Act, 1951
- Ensure payment of EPF dues (contribution) towards such employees’ EPF account
Disclaimer: Details mentioned in this post are of informative nature only and should not be used for legal purposes.
|Read more about EPF:|
|EPF Balance Check||EPF Correction Form||EPF Passbook|
|EPF Calculator||EPF Interest Rate||EPF Pension|
|EPF Contribution||EPF Online Claim||EPF Premature Withdrawal|
|Read more about UAN:|
|Read more about EPFO:|
|EPFO E-Sewa||EPFO Online Payment||EPFO KYC Online Update|
|EPFO Establishment||EPFO Member Portal||EPFO Registration Process|
|Read more about EPF Forms:|
|EPF Form 10C||EPF Form 19||EPF Withdrawal Form 31|
EPF schemes are mandatory for all businesses and business establishments that have in their employ atleast 20 people. Once you, as an employer, have 20 people working under you, you are obligated by law to register with the EPFO within a month of having employed 20 people. Businesses with less than 20 employees are also allowed to voluntarily register for EPFs.
An employee must contribute 12% of their monthly salary to their EPF.
Your employer must contribute 8.33% of your monthly salary to your EPS fund or your pension fund. The remaining 3.67%, on the other hand, go into your EPF account.