Provident fund purpose is to provide employees with lump sum payments at the time of exit from their place of employment. This differs from pension funds, which have elements of both lump sum as well as monthly pension payments. As far as differences between gratuity and provident funds are concerned, although both types involve lump sum payments at the end of employment, the former operates as a defined benefit plan, while the latter is a defined contribution plan.
Steps For EPF Registration for Employers
The employee needs to follow the below-mentioned steps:
Step 1- Register the organization with EPFO
Visit the website and register the organization with EPFO. In the home page of the Unified portal, there is an option called “ESTABLISHMENT REGISTRATION”.
Step 2: Read the User Manual
Click on the “ESTABLISHMENT REGISTRATION” and you will be taken to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before the registration.
Step 3: Register DSC
The employers who are already registered can login with their credentials i.e. with the Universal Account Number [UAN] and password. This instruction manual will explain the process of Employer Registration which is to be followed by registration of DSC [Digital Signature Certificate] of the Employer. Getting DSC registered is a prerequisite to submitting a fresh application for ERF registration.
Step 4: Fill the Employer’s Details
Tick on “I have read the instruction manual” completely. Click on “REGISTER BUTTON” given below. This will take you to the new page where all the employer’s details need to be filled in. The fields marked with the red star (asterisk) are mandatory to be filled in.
Step 5: Fill the details correctly
- First name:-The first name, middle name and last name should be entered exactly as furnished to the Income Tax Department. Any variance in the name of the Income Tax Department will lead to rejection as and when data is verified online.
- Employer PAN:-After entering the employer’s PAN, a message will appear that shows the employer is not registered previously. PAN will also be verified like name and an online application will be permitted.
- Username:-One can select the username of its choice. The system will automatically show whether the same username is available or not.
- Activate the E-Mail Link:-One can select the hint question and hint answer of its choice which will be helpful to the person in case one forgets the password.
- Get the Mobile PIN.
- Hint Question Hint Answer.
Online EPF registration procedure for employers
- Collect relevant employee data and documents.
- Establishment Registered with EPFO.
- Register DSC (Digital Signature Certificate) of the Employer.
- Fill application with all employer details.
- Submit verified form
- Get PF registration certificate & Universal Account Number [UAN]
Benefits of PF Registration Online
- Pension Coverage:- Besides the contribution of the employee to EPF, the employer adds an equal amount which is inclusive of Employee Pension Scheme (EPS). Therefore, EPF saves you a robust pension.
- Cover of Risk:- In case of instances like illness, demise or retirement, Provident Fund helps the dependents of the employee by covering the financial risks they face in such situations.
- Single Account/one EPF Account:- The PF account can be transferred while switching jobs. Universal Account Number(UAN) linked to the Aadhar will start to facilitate the linking of the previous accounts. It can be carried forward to the new employer instead of being closed down. This uniformity ensures that the rate of return is compounded over the years.
- Emergency Fund:- Emergencies are bound to happen at any point of time in life. EPF amount can be of great help during mishaps, illnesses, weddings and educational expenses. Employee can make claims online.
- Employee Deposit Linked Insurance Scheme:- Any person who has PF account is eligible for this insurance scheme that requires only 0.5 % of the salary deduction as premium.
- Extended Goals:-The PF account can be extremely helpful for long-term goals like buying a property or setting up a fund for children.
QUS:-What is full form of EPFO?
EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The scheme is managed under the aegis of Employees’ Provident Fund Organisation (EPFO).
QUS:-Is PF registration mandatory in India?
REGISTRATION under EPF is compulsory: For every factory engaged in industry employing 20 or more employees.For every other establishment having 20 or more employees during previous year.
QUS:-Who are eligible for EPFO?
Any salaried employee with a monthly income of less than 15,000 INR needs to compulsorily be a member of the EPF. An employee with a monthly income higher than INR 15,000 (the current prescribed limit) is eligible to become a member of the EPF if he/she gets approval from the Assistant PF Commissioner and employer.
QUS:-Can I register EPF online?
Head to www.kwsp.gov.my, go to the ‘Member Login’ section and use the temporary User ID & Password sent via SMS to activate.