EPFO REGISTRATION

EPFO Registration

Employees Provident Fund (EPFO) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the umbrella of Employees’ Provident Fund Organisation (EPFO). EPFO registration is applicable for all establishment which employs 20 or more persons. EPFO registration can also be obtained voluntarily by establishments having less than 20 employee.

The EPFO contribution paid by the employer is 6% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In case of establishments which engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%. For most employees working in the private sector, it’s the basic salary on which the contribution is calculated.

It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EEPFO. As per the guidelines in EPFO, employee, whose ‘basic pay’ is more than Rs. 15,000 per month, at the time of joining, is not required to make EPFO contributions. Nevertheless, an employee who is drawing a pay of more than Rs 15,000 can still become a member and make EPFO contributions, with the consent of the Employer.

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