Laws of Employees Provident Fund

Directives to Employer’s:

• Enrol under EPS all categories of employees including employees engaged by contractors and piece-rated, hourly-rated employees
• Remit the contributions and administrative charges to the EPFO Office in your city before the 15th of the following month.
• File the timely returns in prescribed forms:
o Initial – Form 9, Form 3(P.S.), Form 5A.
o Monthly – Form 12A, Form 5, Form 10 and Challans for remitting the dues.
o Annual – Form 3A and 6A after reconciliation with Challans and form 12A.
o Duly attested Form No.2 and the claims forms submitted by the employee/ legal heirs/ nominees.
• Make available all relevant records for inspection of visiting officials

Delay Charges:

In case of delayed remittances of contributions, administrative / inspection charges by an employer, he has to pay both interest and damages for the period of delay.

• Interest is payable @ 12% on the amount of remittance due
• Damages are payable as penalty from 17% to 37% p.a. depending upon delay.

When is an Employer Exempt?

• When an employee or class of employees get Provident Fund benefits on par with or better than statutory provisions – Exemption should be applied for in Form 1 under Para 27 of EPS
• The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.