Employees Provident Fund (EPF)

Coverage

• Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power.
• Establishments not coverable statutorily can come under the coverage of the Act statutorily.
• An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
• Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of business number.

Financial Obligations:

Contributions:

Employee
 

• Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any,) in the case of 175 establishments.
• Rate of contribution shall be 10% in the case of the following:
Brick, beedi, jute, guar gum factories, coir industry other than spinning sector.
• Establishments declared as sick undertakings by BIFR.
 

Employer
• Employer has to contribute 13.61% of the Basic wages which includes 3.67 % to PF a/c , 8.33 % to Pension a/c , 1.1 % to admin a/c, 0.5 % to Insurance Fund and 0.01 % to admin charges for Insurance Fund..

Duties of Employer
• Enroll all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees.
• Remit the contributions and administrative charges before the 15th of the following month.
• File the initial returns of Form 9, Form 3(P.S.), form 5A.
File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues.
• Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A.
• The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed.
• Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees.
• Make available all relevant records for inspection of visiting officials with due authorisation.

For more details : www.epfindia.nic.in