PF Registration

 The Employees Provident Fund (EPF) is a Contributory fund with contributions from both the employee and their employers.

While the focus of the ESI scheme is healthcare, Provident Fund is focused towards post Retirement Income and Benefits.

EPF is a compulsory and contributory fund for Indian organizations under “The Employees’ Provident Fund and Miscellaneous Provisions Act 1952”.

Employee and Employer Contributions to the Employee Provident Fund (EPF)

For EPF, both the employee and the employer contribute an equal amount of 12% of the monthly salary of the employee.

Employees can contribute more than 12% of their salary voluntarily, however the employer is not bound to match the extra contribution of the employee.

For PF contribution, the salary comprises of fewer components:

• – Basic wages,
• – Dearness Allowances (DA),
• – Conveyance allowance and
• – Special allowance.

The employers monthly contribution is restricted to a maximum amount of Rs 1,800. Even if the employee’s salary exceeds Rs 15,000, the employer is liable to contribute only Rs 1,800 (12% of Rs 15,000).

Details of EPF

The statutory compliance associated with PF contribution has some lesser known facts associated with it.

The contributions by the employee and employer are divided into two separate funds:

• – EPF (Employee Provident Fund) and
• – EPS (Employee Pension Scheme).