How to Easily Open Your Employee Provident Fund (EPF) Account

The Process of Opening an Employee Provident Fund (EPF) Account

The Employee Provident Fund (EPF) is a valuable employee benefit provided by employers to support employees after retirement. In order to offer EPF to employees, employers need to be registered with the Employees’ Provident Fund Organisation (EPFO). But how does one go about opening an EPF account online? If you’re unsure how to open a PF account for employees or how to initiate EPF account registration, this guide will walk you through the process.

EPF Registration Applicability for Employers

The Employee Provident Fund (EPF) Scheme is regulated by the EPFO under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for:

• Factories engaged in any industry with 20 or more employees.
• Any establishment employing 20 or more individuals, or specific establishments as notified by the Central Government.

Additionally, establishments with fewer than 20 employees may be required to register based on a notice from the Central Government or voluntarily opt for registration if both the employer and a majority of employees agree. Once the Central PF Commissioner approves the application, the provisions of the Act are applied to the establishment.

Even smaller establishments may voluntarily register for EPF. Every eligible employee will be entitled to EPF from the date of their employment. Employers are responsible for deducting and contributing to the EPF on behalf of their employees.

Contribution Rates

• Establishments with 20 or more employees: 12% of basic wages + dearness allowance + retaining allowance, shared equally between employer and employee.
• Establishments with less than 20 employees: EPF deduction at a rate of 10%.

Documents Required for EPF Registration

Depending on the type of establishment, different documents are required for EPF registration:

• Sole Proprietorship: Owner’s name, PAN, driving license/passport/voter ID, address proof, and phone number.
• Society/Trust: Incorporation certificate, MOA & by-laws, PAN, and identity proofs of president/members.
• Partnerships: Firm’s registration certificate, partnership deed, identity/address proofs of all partners.
• LLP/Company: Incorporation certificate, list of directors/partners, DSC of directors, MOA & AOA, address proof.
• Employees: Employee details including name, father’s name, joining date, birthdate, mobile number, postal address, salary grade, identity proof (Aadhaar/PAN), bank details, and more.
• Other Establishments: First sale and purchase bill, GST registration, employee records, wage/salary register, balance sheets, and cancelled cheque.

Steps for EPF Registration

To register for EPF online, follow these steps:

• Step 1: Register Your Establishment: Visit the EPFO website and select ‘Establishment Registration’. This step will direct you to a downloadable ‘Instruction Manual’ which you should review before proceeding.
• Step 2: Log In or Register If you’re already registered, simply log in with your UAN and password. For new registrations, fill out the required employer information and proceed with the Digital Signature Certificate (DSC) registration, which is mandatory for a fresh EPF account registration.
• Step 3: Enter Employer Details: Accurately enter the employer’s details as registered with the Income Tax Department. Provide the PAN of the employer, and once verified, online registration will be enabled.
• Step 4: Choose a Username: Select an available username, followed by setting up a hint question and answer for security purposes.
• Step 5: Verify Mobile Number and Email Enter the CAPTCHA code and click on ‘Get PIN’. You will receive a PIN on the registered mobile number. Enter the PIN, tick the declaration box, and submit. You will also receive an email verification link. Click the link to complete your registration.

Once all these steps are completed, your EPF registration application will be submitted to the EPFO for approval.

Conclusion

Opening an EPF account online is a simple and efficient process if you follow the right steps and have the necessary documents in place. Employers must ensure they are registered and compliant with EPFO regulations to provide this crucial retirement benefit to their employees.

If you need further assistance in opening an EPF account, feel free to reach out or Contact Us

Frequently Asked Questions

• Who is eligible for EPF registration?

  EPF registration is mandatory for establishments with 20 or more employees, but smaller establishments can opt for voluntary registration.

• What is the EPF contribution rate for employees and employers?

  For establishments with 20 or more employees, the contribution rate is 12% of the employee’s basic wages, shared equally between employer and employee. For establishments with fewer than 20 employees, the rate is 10%.

• What documents are required for EPF registration?

  Common documents include the employer's PAN, incorporation certificate, bank details, and employees’ Aadhaar, salary information, and bank account details.

• How can an employer register for EPF online?

  Employers can register via the EPFO portal, provide necessary establishment details, and complete the registration using a Digital Signature Certificate (DSC).

• What is a UAN, and why is it important?

  The Universal Account Number (UAN) is a unique identifier for employees under the EPF scheme. It links multiple EPF accounts under one ID, allowing employees to manage their EPF across different employers.

• Can employees check their EPF balance online?

  Yes, employees can check their EPF balance online through the EPFO Member Portal or the UMANG app using their UAN and password.

• How can employees withdraw EPF funds?

  Employees can withdraw EPF funds after retirement or under specific conditions like medical emergencies, through the EPFO portal or UMANG app.