EPF Compliance Checklist: This important Provident Fund note is something you just cannot miss
EPF Compliance Checklist: Employee Provident Fund or EPF aims to provide wider benefits to the workers on the completion of their service period.
EPF Compliance Checklist: Employees' Provident Fund or EPF aims to provide wider benefits to the workers on the completion of their service period. Every recruiter with 20 or more employees should register under the Employees' Provident Fund Organisation or EPFO. With the amendment in the rule of EPF, the limit of the minimum employees is 10 in certain cases. The recruiting company has to register with the EPFO if it has 10 or more employees under the EPF. However, very few employees know the EPF Compliance that falls under the EPF Act.
Speaking on the EPF, Kartik Jhaveri, Manager - Wealth Management at Transcend Consultants said, "EPF is a benefit for the employees during their retirement. EPF is a social security fund created for the purpose of providing financial security and stability during retirement." Asked about the eligibility for EPF, Jhaveri said it applies to any person who is employed for work of an establishment or employed by the contractor in or in connection with the work of an establishment and drawing salary up to Rs 15,000 per month. The salary is calculated as Basic Salary plus Daily Allowance.
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Elaborating upon the rates of contribution in the EPF Jitendra Solanki, a SEBI registered tax and investment expert said, "In EPF, there are three contributors — employee, employer and the Central Government. Employee and employer contribute 12 per cent of the basic salary of the employee while the Central Government contributes 1.16 per cent of the basic salary of the employee."
Speaking on EPF Compliance, Solanki said, "All members contributing to Provident Fund are automatically insured for their life during their service period. Employer’s contribution to the Insurance Scheme is 0.5 per cent. The maximum amount payable to the nominee in case of death of an employee is Rs 1 lakh."
Find full List of EPF Compliance below:
Source: EPFO official website epfindia.gov.in
EPF Compliance List also includes Pension Fund. Speaking on this benefit, Jhaveri said, "All employees covered under the Provident Fund become members of the Pension Scheme. 8.33 per cent of Basic Salary up to Rs 15,000 is contributed to the Pension Scheme from employers' share of contribution. A minimum period of ten years of contributory service is required to be eligible to receive monthly pension. The full pension is payable on completion of 20 years of contributory service."
Apart from these, there are some more things in the EPF Compliance List that an EPF account holder enjoys. There are 12 such provisions hat figures in the EPF Compliance list. Those 12 EPF provisions are Employer and Employee’s PF dues, Payment of Pension Fund, Payment of Insurance Fund, Detail of employees, Nomination Form, Addition of members, Deletion of member, Details of contribution, Detail of wages and contribution, Yearly Consolidated statement of contribution, Return of ownership of the establishment and Transfer of PF.