+91 910 997 0060
Contact Us
Contact Us
Contact Us

EPF (Provident Fund) Registration

EPF registration enrols an establishment with the Employees’ Provident Fund Organisation (EPFO) and is mandatory once it employs 20 or more people. Both the employer and the employee contribute 12% of basic wages plus dearness allowance towards the employee’s retirement savings and pension. Following the new Labour Codes in force from 21 November 2025, the wage definition and contribution base have changed, and a revision of the Rs. 15,000 wage ceiling has been directed and is expected. Samkhya handles your EPF registration and monthly compliance.

EPF Registration: A Detailed Guide

The Employees’ Provident Fund is a mandatory retirement-savings and pension scheme administered by the EPFO under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, now read with the Code on Social Security, 2020. Every factory or establishment employing 20 or more persons must register within 30 days of crossing the threshold and contribute to three schemes, EPF, the Employees’ Pension Scheme (EPS), and the Employees’ Deposit Linked Insurance (EDLI), for each eligible employee every month. Mandatory coverage applies to employees earning basic wages up to Rs. 15,000 a month, though those above this can join voluntarily. Under the Code on Wages, 2019, in force from 21 November 2025, basic wages must be at least 50% of total remuneration, which raises the contribution base for many employers.

Advantages of EPF

EPF offers strong benefits for employees:

  • Retirement Corpus: Builds a substantial, interest-earning savings corpus for the employee.
  • Pension Benefit: The EPS component provides a pension after retirement.
  • Insurance Cover: The EDLI scheme provides life-insurance cover linked to the EPF balance.
  • Tax Benefits: Employee contributions qualify for deduction under Section 80C, and interest is tax-free within limits.
  • Employee Trust: Statutory PF builds employee confidence and aids retention.
  • Attractive Interest: The EPF earns a government-declared rate, set at 8.25% for FY 2025-26.

When EPF Registration Is Mandatory

EPF registration becomes compulsory as follows:

  • 20-Employee Threshold: Mandatory for establishments employing 20 or more persons.
  • Within 30 Days: Registration is required within 30 days of crossing the threshold.
  • Stays Covered: Once registered, an establishment remains covered even if headcount later falls.
  • Voluntary Coverage: Establishments with fewer than 20 employees can register voluntarily.
  • All Workers Count: Contract and daily-wage workers count towards the headcount.
  • Severe Penalties: Delay attracts interest and damages, and deducting PF without depositing it is an offence.

Contribution Structure

EPF contributions are shared between employer and employee:

  • Employee Share: 12% of basic wages plus dearness allowance.
  • Employer Share: 12%, split as 3.67% to EPF, 8.33% to EPS, and 0.50% to EDLI.
  • EPS Cap: The EPS portion is capped at Rs. 1,250 a month (8.33% of the Rs. 15,000 ceiling).
  • Wage Ceiling: Mandatory coverage applies up to Rs. 15,000 of basic wages a month.
  • Admin Charges: The employer pays small administrative charges in addition.
  • Higher Wages: Contributions can be made on actual wages above the ceiling, voluntarily.

Eligibility and Coverage

EPF coverage applies as follows:

  • Any establishment with 20 or more employees must register.
  • Employees earning basic wages up to Rs. 15,000 a month are compulsorily covered.
  • Employees earning above Rs. 15,000 can join with employer consent.
  • Establishments below the threshold can opt for voluntary coverage.
  • All entity types, from proprietorship to company, can be covered.

EPFO and the Registration Process

EPF registration is done online through the unified Shram Suvidha portal of the Ministry of Labour and Employment, which also handles ESI. The employer signs up, opens the registration module, enters the establishment details (legal name, PAN, date of setting up, address, and activity) and the ownership and management details, declares the date of crossing 20 employees, and uploads the supporting documents. The EPFO issues a unique establishment code, and each employee is allotted a Universal Account Number (UAN). The employer then files a monthly Electronic Challan cum Return (ECR) and deposits the contributions by the 15th of the following month.

Documents Required

For the Establishment:

  • PAN of the business and the certificate of incorporation or registration.
  • Proof of the business address and the date of setup.

For the Employer and Employees:

  • Identity and address proof of the proprietor, partners, or directors, and a cancelled cheque.
  • Employee details with Aadhaar for UAN generation.

EPF Registration Process

EPF registration follows a clear sequence:

  1. Sign up on the Shram Suvidha portal with the employer’s details.
  2. Open the EPF and ESI module and select EPF.
  3. Enter the establishment, ownership, and management details.
  4. Declare the date of crossing 20 employees and upload the documents.
  5. Receive the EPFO establishment code.
  6. Generate a UAN for each eligible employee.
  7. File the monthly ECR and deposit contributions by the 15th.

Register for EPF with Samkhya

Registering for EPF with Samkhya Corporate Services is simple. Just follow these easy steps:

  • Tell us about your workforce: Share your headcount and wage details.
  • We confirm applicability: We check the threshold and your obligations.
  • Fill the form: Complete our online form with your establishment and employee details.

From there, our team registers you with EPFO, generates UANs, and runs your monthly ECR.

Ongoing EPF Compliance

An EPF-registered employer must keep up with monthly compliance:

  • Monthly ECR: File the Electronic Challan cum Return and deposit contributions by the 15th.
  • UAN Management: Ensure every employee has a UAN linked with KYC.
  • Timely Deposit: Avoid late deposit, which attracts 12% interest and damages.
  • Joiners and Exits: Update member details for new joiners and those who leave.
  • Annual Accounts: Reconcile contributions and keep member passbooks updated.
  • Wage Definition: Align wages with the 50% basic rule under the Code on Wages.

Contributions, Interest, and Tax

The employee’s EPF contribution of 12% of basic plus DA qualifies for deduction under Section 80C, up to Rs. 1.5 lakh a year, and the EPF balance earns a government-declared interest rate, set at 8.25% for FY 2025-26. The employer’s matching 12% is split between EPF (3.67%), the pension scheme (8.33%, capped at Rs. 1,250 a month), and EDLI insurance (0.50%), with small administrative charges on top. Interest on an employee’s own contributions above Rs. 2.5 lakh in a year is taxable. With the Labour Codes in force from 21 November 2025, the Code on Wages requires basic wages to be at least half of total pay, increasing the contribution base for many employers, and a revision of the Rs. 15,000 wage ceiling to a higher figure has been directed and is expected. EPF withdrawals are generally tax-free after five years of continuous service.

EPF Contribution Breakdown

Component Employee Employer
EPF 12% of basic + DA. 3.67% of basic + DA.
EPS (Pension) Nil. 8.33%, capped at Rs. 1,250.
EDLI (Insurance) Nil. 0.50%.
Total 12%. 12% plus admin charges.
Wage Ceiling Rs. 15,000 basic for mandatory cover. Same.

Frequently Asked Questions

When is PF registration mandatory?

It is mandatory once an establishment employs 20 or more persons, and must be done within 30 days of crossing that threshold. Smaller establishments can register voluntarily.

How much is contributed to PF?

The employee contributes 12% of basic plus DA, and the employer contributes a matching 12%, split between EPF, the pension scheme (capped at Rs. 1,250), and EDLI insurance.

What is the PF wage ceiling?

Mandatory coverage applies to basic wages up to Rs. 15,000 a month, though a revision to a higher ceiling has been directed and is expected. Employees above the ceiling can join voluntarily.

How have the Labour Codes affected PF?

From 21 November 2025, the Code on Wages requires basic wages to be at least 50% of total pay, which raises the PF contribution base for many employers.

What is the EPF interest rate?

The EPF interest rate for FY 2025-26 is 8.25% per annum, declared by the government each year.

What if PF is deducted but not deposited?

It is a serious offence that attracts 12% interest, damages, and possible prosecution, so contributions must be deposited by the 15th of each month.