PF Registrations

What is PF registration?

It stands for Provident Fund Registration. It refers to a retirement saving scheme provided by the government for all salaried employees in India on which fixed interest is regularly paid.

PF registration is a mandatory scheme for all organizations having more than 20 employees. The idea is that these organizations contribute a fixed amount towards the Employee Provident Fund out of the employee’s salary and wages.

towards the Employee Provident Fund out of the employee’s salary and wages.

Why should one get PF Registration?

Some of the advantages of having a PF account are:

  • Tax benefits: employee’s contribution towards an Employees’ Provident Fund (EPF) account is eligible for tax exemption under Income Tax Act.
  • Lifelong Pension: by contributing about 12% of the wages in the Employees’ Pension Scheme (EPS), an employee ensures lifelong pension on 10 years of contributory membership.
  • Insurance Benefits: promised benefits under Employees Deposit Linked Insurance (EDLI) Scheme.
  • Premature Withdrawal Option: option to make partial withdrawals after 5-10 years of service for meeting specific needs.
  • Higher Returns: the money you put in generates higher returns than it would in banks.

A. Criteria for obtaining PF registration

If you are a salaried employee with a Basic + Dearness Allowance less than Rs.15,000 per month, it is mandatory for your employer to open an EPF account for you. Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily. If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.

What are the documents required for registration?

The Following documents and details are required by the Employer to get PF Registration done:

  • Name & address of your company
  • Head office & branch details
  • Date of company incorporation
  • Total employee strength
  • Type of business activity
  • Nature of business
  • Director/partners’ details
  • Employee’s Basic details
  • Employees’ salary details
  • Bank account details of the company
  • PAN card