Provident fund

PF registration in Jharkhand- Provident fund is another name for pension fund. EPF comes under the purview of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration is mandatory for organizations with total employee strength more than 20.

Applicability of EPF Registration for Employers

EPF registration is mandatory for all establishments-

  • which is a factory engaged in any industry having 20 or more persons, and
  • To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable .A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration.

Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.

Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.

The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.

Documents required for PF Registration in Jharkhand

Any business that wishes to apply for PF needs to submit the following mandatory documents:

  • PAN card of establishment
  • Certificate of incorporation
  • Cross cancelled cheque of establishment
  • Address proof that is in the name of the establishment. It can be:
  • Rent agreement
  • Water
  • Electricity
  • Telephone bill
  • Specimen signature of directors and authorized signatories
  • Digital signature of the authorized applicant
  • In case of voluntary registration, consent of the majority of employees

In some entities the underlying may also be needed:

  • First sale bill
  • First purchase bill of raw material and machinery
  • GST Registration Certificate
  • Bankers details
  • Record of a monthly employee strength
  • Register of salary and wages

You just need to collect the mandatory documents and send a copy of each document to us.

FAQs

QUS:-How is PF salary calculated?

 If you are a man, you must contribute 10% or 12% of your basic salary. – In case you are a new woman employee, it is 8% of your basic salary for the first 3 years. Thereafter, it becomes 10% or 12% of your basic salary. – Your employer has to contribute an amount equal to 10% or 12% of your basic salary towards EPF.

QUS:-What if company is not paying PF?

The EPFO has a provision of charging damages or penalty from the employers who are unable to deposit PF contributions as mandated under the EPF Scheme 1952. Employers are required to deposit dues on a month’s salary by 15th of the next month. However, they get 10 days grace for payment after that.

QUS:-Can I withdraw full PF amount?

Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he/she is unemployed for 60 straight days (two months) or more after leaving a job.

QUS:-What is the penalty for EPF late payment?

Fine for Late payment/contribution: Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.

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