Employees' Provident Fund Registration and Activation

What is EPF?

The EPF or the Employees’ Provident Fund is a retirement benefits scheme in which an employee and the employer contribute a percentage of the amount for the financial security of the employee. This fund is payable with interest gained over the years to the employee on retirement.

EPF or the Employees’ Provident Fund is the primary scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, managed and governed under the aegis of Employees' Provident Fund Organization (EPFO is a statutory body under the Labor Ministry of the Ministry of Finance in India). Like a Provident Fund Scheme in general, the EPF scheme requires a percent of the contribution from the employee’s salary towards the scheme and the employer has to make an equivalent contribution as well. The employee, thereafter, gets a lump sum amount i.e. the total of his and the employer’s contributions and the interest accrued upon the amount at the time of his retirement or under special circumstances elaborated hereinafter.

Table of Content:

• Primarily, there are 3 types of provident funds

• EPF primarily covers 3 schemes

• Eligibility of EPF Registration / Applicability

• EPF is not applicable to

• Documents for EPF Registration of an Employee

• EPF Registration Steps for the Employers

• What is UAN (Universal Account Number)?

• UAN Registration Steps by the Employer?

• How can you activate your UAN?

• Who deducts EPF?

• Contribution towards EPF 

• When can we withdraw the EPF Amount?

• How to check your PF balance?  

• How to transfer the EPF account from one employer to another online?

• Income Tax on EPF withdrawal 

• Income Tax on EPF withdrawal 

• Steps to apply for EPF withdrawal online

• Frequently Asked Questions

Primarily, there are 3 types of provident funds:

• Public Provident Fund is covered under the Public Provident Fund Act, 1968 for any person whether in employment or not who may contribute to this scheme;

• Statutory Provident Fund (SPF) for Government employees;

• Recognized Provident Fund for organizations that employ 20 or more employees.

The distinguishing feature is that the EPF is not restricted to one employer i.e. even if you switch your job, your EPF scheme will continue and can be transferred from one employer to the other. It is instrumental in helping private-sector employees to save a portion of their salary every month towards a retirement benefit. The amount under this scheme is deposited at the Employee Provident Fund Organization (EPFO). These investments made by several employees towards the Provident Fund are pooled together collectively and invested by a trust.

EPF primarily covers 3 schemes:

• Employees’ Pension Scheme, 1995 which replaced the Employees’ Family Pension Scheme, 1971;

• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952;

• Employees’ Deposit Linked Insurance Scheme (EDILS), 1976.

Eligibility of EPF Registration / Applicability:

The EPF scheme applies to ‘every factory engaged in any industry specified in the Schedule I’, i.e.,   

• Every establishment where 20 or more people are employed;

• Every establishment which may be notified by the Central Government in the Official Gazette; 

• Any class of such other establishment that employs 20 or more employees. (It is also applicable to home workers as upheld in the case of Mangalore Gandhi Beedi Workers v. Union of India.) 

Therefore, there is a two-fold test:

1. Whether the establishment qualifies as a ‘factory’?

2. Whether 20 or more persons are employed in the aforementioned establishment?

EPF is not applicable to:

• Casual or temporary workers as they do not qualify as an employee. (This was upheld in the case of Bikarer Cold Storage Company Ltd. v. Regional Provident Fund Commissioner, Rajasthan[1])

• Any establishment which is registered under the Co-Operative Society Act, 1912.

• Any Co-operative society in relation to the State wherein 50 or fewer people are employed after the expiry of 5 years provided it works without the aid of power.

• Further, the Central Government has the power to exempt any class of establishment, from the EPF Rules and Scheme on grounds of their financial position.

Documents for EPF Registration of an Employee

The documents required for EPF registration are

• Proof of date of birth;

• Joining letter;

• Address Proof;

• PAN Card;

• Salary Receipt indicating the grade and salary;

• Proof of designation;

• Bank A/c number with IFSC code;

• Signature.

EPF Registration Steps for the Employers:

Steps to be followed by an Employer for EPF Registration are

STEP 1: Visit the website www.epfindia.gov.in to register your organization with the EPFO and click on ‘Establishment Registration’.

STEP 2: You will be redirected to https://registration.shramsuvidha.gov.in/user/login. Click on the ‘Download Manual’ button and read the manual thoroughly.

STEP 3: Once you are through with the Manual, proceed with the registration by clicking on ‘Sign Up’

STEP 4: Fill all the required details like name, email, mobile number, and captcha and click on sign up.

STEP 5: Click on ‘Registration For EPFO-ESIC’ which will redirect you to the next page.

STEP 6: Click on ‘Apply for New Registration’ and then check both ‘Employees’ State Insurance Act, 1948’ and ‘Employees’ Provident Fund and Miscellaneous Provision Act, 1952’ option and click on the ‘Submit’ button.

STEP 7: Mention all the details such as Establishment Details, Contacts, Contact Persons, Identifiers, Employment Details, Particulars of workers, Branch/Division, Activities, and Attachments.

STEP 8: Review the summary on the dashboard and click on the ‘Submit’ button.

STEP 9: Register for the Digital Signature Certificate (DSC).

STEP 10: You will receive an email on your registered mail id from Shram Suvidha confirming your registration.

What is UAN (Universal Account Number)?

Universal Account Number (UAN) is a unique account number given to the employee irrespective and independent of the employer by the Ministry of Employment and Labor functioning under the Government of India, to maintain the EPF account. An employee can check the status of his PF, check for discrepancies in the payment or track activities with the Universal Account Number.

UAN plays a very important role in the event where the employee switches his/her job. It enables the transfer of the name of the employer without any prejudice to the employee’s right to receive EPF. Further, it ensures transparency and acts as a check to ensure that the employer is diligently contributing to the EPF.

UAN Registration Steps by the Employer?

The activation of the UAN is done by the employee and following are the steps to UAN Registration:

STEP 1: Visit  https://unifiedportal-emp.epfindia.gov.in/epfo/ and log in to your account with your username and password.

STEP 2: Click on ‘Register-Individual’ on the ‘Member’ button of the menu bar.

STEP 3: Register your employee by filling in all the required details of his/her previous employment.

STEP 4: Enter the OTP received on your registered mobile number. The system thereafter auto-fills the details from your Aadhar information already saved.

STEP 5: Submit the form to obtain your UAN by SMS or mail.

How can you activate your UAN?

The activation of the UAN is done by the employee and following are the steps to UAN Activation:

STEP 1: Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and click on ‘Activate UAN’ under the Important Links section.

STEP 2: Enter the necessary details like Universal Account Number or Member ID, Aadhaar Number, PAn Number, Name, Date of Birth, Registered Mobile Number, Registered E-Mail Id and CAPTCHA Code and click on ‘Get Authorization PIN’

STEP 3: You will receive a ‘One Time Password’ on your registered mobile number. Once the OTP is validated the UAN will be activated.

Who deducts EPF?

EPF is deducted by the current employer, provided the provisions of the EPF apply to the respective organization. The EPF accounts at the base level are maintained by the EPFO which is under the Ministry of Employment and Labor functioning of the Government of India. Therefore, though deducted by the current employer, the change in the employer does not affect the EPF, as it is independent of the same.

EPF accounts are active irrespective of change in employment. However, you need to notify your EPF details to the new employer so that they can contribute to the Provident Fund Scheme. EPF is activated every time the Employee receives their pay.

Contribution towards EPF :

Initially, the employer and the employee both contribute 12% of the basic salary (inclusive of the dearness allowance) of the employee to their EPF account. After the entire 12% of the contribution by the employee deposits into the respective EPF account, the contribution of the employer is divided in the undermentioned pattern:

• 3.67% (out of 12%) goes to the respective employee’s EPF account;

• The remaining 8.33% is diverted to the respective Employee’s Pension Scheme.

These funds of several employees are pooled together and invested by a trust, thereby generating interest of around 8% to 12% as decided by the Government and the Central Board of Trustees.

When can we withdraw the EPF Amount?

In accordance with the EPF Scheme withdrawals are permitted from the EPF account when:

• The worker is no longer associated with the organization;

• The worker is unemployed for 2 months or more;

• The worker is independently employed.

Further, the scheme allows for the exchange and transfer of EPF on the change of employer. In cases where the employee has completed 7 years of service, they can withdraw up to 50% of the EPF contribution, 3 times in their working life. It is pertinent to note that in the undermentioned exceptional cases, an employee has been allowed to withdraw funds from their EPF Account:

• Marriage, whether of the employee, siblings or children;

• Repairs or alteration of the existing house of the employee;

• Repayment of Existing Home Loan;

• Medical Treatment;

• Education Purposes or needs of the employee of his/her children;

• Miscellaneous

How to check your PF balance?  

With the easy access through UAN and the EPFO Portal, the employee can check their PF balance anytime and anywhere. To access the passbook, make sure your UAN is activated. You can check your EPF balance on the EPFO’s member portal by following the under mentioned steps:

1.Using EPFO Portal

STEP 1: Visit https://www.epfindia.gov.in/site_en/index.php

STEP 2: Click on ‘For Employees’ under the ‘Our Services’ menu button.

 

STEP 3: Under the ‘Services’, click on ‘Members Passbook.’

STEP 4: You will be redirected to a new page. Login with your UAN and Password and access your Passbook.

2. Using SMS: You can know your PF balance by sending an SMS ‘EPFOHO UAN ENG’ to mobile number 7738299899 as well.

3. Giving a Miss Call: You can inquire about your EPF balance by giving a missed call to 011-22901406 from your registered mobile number. Post this you will receive a message with your PF balance.

How to transfer the EPF account from one employer to another online?

Transferring the EPF amount from one employer to the other is very easy and convenient with your UAN.

STEP 1:  Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and log in to your account using your UAN and password.

STEP 2: Click on ‘One Member – One EPF Account (Transfer Request)’ under the ‘Online Services’ menu button.

STEP 3: Your previous employment information will appear on clicking ‘Get details’ below.

STEP 4: Choose either your previous employer or current employer to attest the claim form as per the availability of the authorized signatory holding DSC and provide member id/UAN:

STEP 5: Get an OTP on your registered mobile number by clicking on ‘Get OTP’. Enter the OTP and click on ‘Submit’.

The primary advantage of transferring your EPF account is that you will get a tax exemption on this amount i.e. if you close an old account only to open a new one before the period of 5 years, the amount in the EPF account becomes taxable.

 

Income Tax on EPF withdrawal 

• Withdrawal before 5 years: The employer’s contribution amount with the interest so accrued is taxable in the year of withdrawal. The deduction claimed under Section 80C on the employee’s contribution is added to the income of the employee in the year of withdrawal and is taxable. Further, the interest accrued on the employee’s contribution is also taxable. TDS is applicable at the rate of 10%.

• Withdrawal after 5 years: Tax is exempted on contributions by both employer and the employee, the interest accrued and the amount eventually withdrawn for any withdrawal done after 5 years. The deduction can be claimed under Section 80C for the contributions made by the employee.

Process for withdrawal of EPF :

The withdrawal of EPF can be made either by a physical application or an online application.

• Submission of a physical application

Download the new composite claim form (Aadhar or Non-Aadhaar) from the EPF Portal. While the Aadhaar claim form is to be submitted to the jurisdictional EPF office without the attestation of the employer, the Non-Aadhar version needs to be attested by the employer. In cases of partial withdrawal, there is a requirement to furnish necessary certificates and proof wherein self-certification is allowed.

Badal - put a Screenshot here[https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2016-2017/Composite_Claim_Forms_31792.pdf]

• Submission of an online application

There are a few prerequisites to be kept in mind for online withdrawal of EPF:

1. The UAN (Universal Account Number) and the registered mobile number should be active.

2. The UAN should be linked with your KYC, i.e. Aadhaar number, PAN details and the bank details of salary account along with the IFSC code. 

Steps to apply for EPF withdrawal online

Following are the steps to apply for EPF withdrawal online:

STEP 1: Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and log in to your account using your UAN and password.

STEP 2: Under the ‘Manage’ menu button, click on KYC and verify all your details.

STEP 3: Once verified, go to the menu button ‘Online Services’ and select ‘Claim (Form-31, 19 & 10C)’.

STEP 4: All your member details, KYC details, and other service details will appear on the ‘claim’ form. Enter the last four digits of your bank account and verify it.

Step 5: Click on ‘Yes’ to add a signature to the certificate of the undertaking and then proceed to “Proceed for Online Claim”.

Step 6: Select the claim that you are applying for, i.e. full EPF settlement, EPF part withdrawal (loan/advance) or pension withdrawal, under the ‘I want to apply for’ tab.

Step 7: Select ‘PF Advance' (Form 31)’. Thereafter, provide the purpose of such withdrawal, the amount along with the employee’s address and submit your application.

The payment is initiated. In certain cases, you will have to submit scanned copies of the attached certificates. The request is to be approved by the employer before the money can be credited to your bank account.

Frequently Asked Questions:

What is the PF number?

The PF number or Member ID is allotted to the employee by the EPFO in order to allow the employer to submit their EPF and EPS contribution for the employee.

How do I register my employee for PF?

An employee can register with PF by creating an employee account for the respective employee with their UAN and other details on the website http://www.epfindia.com. It is important that the employer must already be registered in order to complete the registration process of the employee.

What is the minimum employee count for the PF?

The minimum employee count for EPF is 20 as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

Is PF mandatory?

Yes, the EPF is mandatory under the present rules and regulations in place in India.

Can I open the PF account?

The EPF account can be opened by you if you are an employer, and the provisions are applicable to you i.e. there are 20 or more employees and the organization qualifies the definition of a factory. Further, an employee cannot open a PF account on their own.

How can I check my PF and EPF account balance?

You can check your PF account balance by following three steps.

1. Using EPFO Portal

STEP 1: Visit https://www.epfindia.gov.in/site_en/index.php

STEP 2: Click on ‘For Employees’ under the ‘Our Services’ menu button.

STEP 3: Under the ‘Services’, click on ‘Members Passbook.’

STEP 4: You will be redirected to a new page. Login with your UAN and Password and access your Passbook.

2. Using SMS: You can know your PF balance by sending an SMS ‘EPFOHO UAN ENG’ to mobile number 7738299899 as well.

3. Giving a Miss Call: You can inquire about your EPF balance by giving a missed call to 011-22901406 from your registered mobile number. Post this you will receive a message with your PF balance.

What is the UAN Number?

Universal account number (UAN) is a unique account number given to the employee irrespective and independent of the employer by the Ministry of Employment and Labor functioning under the Government of India, to maintain the EPF account.

How can I generate my UAN number?

You can generate your UAN number by the following steps.

STEP 1: Visit  https://unifiedportal-emp.epfindia.gov.in/epfo/ and log in to your account with your username and password.

STEP 2: Click on ‘Register-Individual’ on the ‘Member’ button of the menu bar.

STEP 3: Register your employee by filling in all the required details of his/her previous employment.

STEP 4: Enter the OTP received on your registered mobile number. The system thereafter auto-fills the details from your Aadhar information already saved.

STEP 5: Submit the form to obtain your UAN by SMS or mail.

What happens if UAN is not activated?

UAN is required in case of the transfer of employer, checking PF, and other circumstances. If the UAN is not activated it will have no effect as to your EPF deductions. However, it is advised that you activate your UAN.

How can I know my UAN details?

Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/. Select the option of ‘Know your UAN status’ under the ‘important links’ option. The option redirects you to another page wherein you need to enter details in regards to current member ID, name, EPF account number, EPF ID, registered mobile number and email. On successful submission of details, you will receive an OTP. On verification by OTP, UAN details are sent to the registered mobile and email.

What is EST ID in PF?

EST or the Establish Code is a unique number assigned to an organization by the Ministry of Labor. EST ID is a five-digit code, it is a part of your PF Account number thereby indicating the code and details of your employer.

How can I activate my UAN?

You can activate your UAN by following the three given steps.

STEP 1: Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and click on ‘Activate UAN’ under the Important Links section.

STEP 2: Enter the necessary details like Universal Account Number or Member ID, Aadhaar Number, PAn Number, Name, Date of Birth, Registered Mobile Number, Registered E-Mail Id and CAPTCHA Code and click on ‘Get Authorization PIN’

STEP 3: You will receive a ‘One Time Password’ on your registered mobile number. Once the OTP is validated the UAN will be activated.

How can I create my PF account?

A PF account can be opened only by the employer on behalf of the employee. You should speak to your employer with regard to the same.

How can I contact EPF customer care?

You can contact the customer care at the address and contact number mentioned at https://www.epfindia.gov.in/site_en/Contact_us.php, depending upon your region or zone, either online or in person.

[1] 1981 (10) LLJ 181