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Employees’ Provident Fund (EPF) is a social security plan that allows employees to save a small percentage of their earnings for future benefits. Every business is required to provide its employees with an EPF, or Employees Provident Fund, which is similar to a retirement fund. The Employees’ Provident Funds and Miscellaneous Provisions Act of 1952 governs the EPF. EPF registration is required for firms with over 20 employees. Such employers can use Law Suvidha online for the PF registration service.
Companies can sign up for an employee provident fund in three simple steps:
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With Pension Coverage, as a result, EPF saves you a substantial pension.
In the event of an employee’s illness, death, or retirement, the Provident Fund assists the employee’s dependents by addressing the financial risks they face.
While changing employment, the PF account can be transferred. Using Universal Account Numbers (UANs) connected to Aadhar will enable the linkage of prior accounts. Instead of being closed down, it might be transferred to a new employer. This consistency assures that the rate of return is compounded over time.
Emergencies are unavoidable in life. The EPF sum might come in handy during disasters, sicknesses, marriages, and educational costs. Employees can file claims online.
Any person with a PF account is eligible for this insurance system, which needs only a 0.5% wage deduction as a premium.
The PF account may be particularly beneficial for long-term goals like purchasing a home or establishing a fund for children.
Members who have enrolled with the UAN site can obtain information from the Employees Provident Fund Organisation (EPFO) by dialling 011-22901406 from their registered cell phone number. If the member’s UAN is linked to the bank’s account number, PAN card, or Aadhar number, the member may readily obtain information about their PF balance and prior contributions.
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Employee and employer each contribute 12% of salary. Employers pay 12% of base salary plus dearness allowance and keeping allowance. If there are less than 20 employees in the company, the PF rate is 10%.
This system applies to all enterprises or commercial entities with 20 or more employees.
The employee’s pension is closely tied to PF. Aside from the employee’s 12% payment to EPF, the employer contributes an equal amount. 8.33% of this goes to the Employee Pension Scheme (EPS).
The PF beneficiary will be unable to use the EPFO Employer Portal and see his PF status until he has completed the PF registration process.
An employee who has not registered for PF cannot access his PF status on the EPFO portal and cannot claim any PF money.