EPF applicability, contributions & collection
EPF Applicability
The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 extends to the whole of India. It applies to every establishment employing 20 or more persons engaged in any industry or class of establishments notified by the Central Government. It applies to all departments / branches of an establishment wherever situated. Any establishment employing fewer than 20 persons may also be covered voluntarily under Section 1(4) of the Act.
Manner of Contribution
For EPF, both the employee and the employer contribute equal amounts, which is 12% of the salary of the employee. Employee contributions may differ — employees can voluntarily contribute more than 12% of their salary, but in such a case the employer is not bound to match the extra contribution.
For PF contribution, the salary comprises components such as basic wages, DA, conveyance allowance and special allowance. For the statutory PF deduction, the wage ceiling is Rs. 15,000 per month — even if the employee’s salary is above Rs. 15,000, the employer is liable to contribute only on Rs. 15,000 (i.e. Rs. 1,800).
Note: The employer and employee may mutually agree to contribute on actual salary above Rs. 15,000.
The PF is divided into EPF and EPS (Employees’ Pension Scheme) contributions: the employees’ contribution goes entirely to EPF; from the employer’s contribution, 8.33% goes to EPS and the balance goes to EPF.
EPS contribution is capped at Rs. 1,250 per month; the higher EPS contribution option (on actual salary above Rs. 15,000) is available under Paragraph 11(3) of the EPS, 1995, subject to a joint application by the employer and employee.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct the employee’s contribution from the wages bill, and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the calendar month in which the contributions fall due.
Documents for PF registration
- List of Directors / Partners and Address.
- MoA, AoA, CoI (if it is a Company).
- Certificate of Incorporation / Partnership Deed / Trust Deed (as applicable).
- Board Resolution authorising PF registration (for companies).
- Shops and Establishment Act — Registration Certificate.
- PAN Card copy — Company's / Firm's / Entity's.
- PAN Card copy, Aadhaar Card copy and photo of all Directors / Partners / Proprietor.
- Rental agreement and office electricity bill for the establishment.
- Salary register from day one — when employees crossed 20 or more.
- Bank statement (recent month) and cancelled cheque.
- Contact details — Email & phone number.
- Date of coverage in DD/MM/YYYY format — i.e., date from when PF becomes applicable to your establishment.
- Number of existing employees in the format below:
- a) Number of Male Employees: _______
- b) Number of Female Employees: _______
- Number of employees to whom PF is applicable in the format below:
- a) Number of Male Employees: _______
- b) Number of Female Employees: _______
- Digital Signature of the authorised signatory of the entity.
- Specimen signature card format will be given.
- Attachment pertaining to PF:
- a) Form 2 — Specimen signature of the authorised signatory.
Note: If your establishment maintains an approved PF trust, you may apply for exemption under Section 17 of the EPF & MP Act, 1952, allowing the trust to administer the fund in lieu of the EPFO scheme, subject to compliance with the prescribed conditions.
Other registrations we handle
Talk to a partner.
A 30-minute call with a partner — no deck, no follow-up email blasts. Just a read on whether we’re the right team to handle your EPF registration.