Provident Fund

The employee provident fund is administered by the Employees Provident Fund Organization (EPFO), a statutory body developed by the government of India under the Ministry of Labor and Employment.

For every employee, it is mandatory to contribute towards EPF and EPS if he is drawing a basic pay of up to Rs 15000. If an employee is drawing a basic salary over 15001 per month, then also he/she can ask for PF deductions from his salary.

There are three components in Provident Fund

  • Employer Provident Fund
  • Employer Pension Scheme (EPS)
  • Employee Deposit Linked Insurance (EDLI)

EPF Administrative Charges Reduced to 0.65% from 0.85%. Also EDLI Admin Charges are Nil ( wef 01 April 2017) Hence all calculations need to be done on 0.65% instead of 0.85% and accordingly for EDLI. Refer Gazette on EPF / EDLI Admin Charge

Provident Fund Deduction Rates

Note : EPS will always be maximum on the statutory limit of Rs 15000/-.

Check examples of above Scenario

RETURNS – PROVIDENT

Monthly Returns

  • Monthly Filling of Electronic Challan cum Return (ECR). The monthly filing / online return is to be completed using e-sewa and e-return tool for employers. It is to be done within 15 days of the close of the month.
  • List of new employees joined in the establishment during the preceding month – (Form-5)
  • List of employees leaving service during the preceding month – (Form-10)
  • Nil Returns should be filed if there are no new joinees / resignees.
  • The total no. of members last month, new members joined and existing members resigned in the preceding month & total no. of present subscribers – (Form-12A)

 Annual Returns

  • Form 3A – Current year’s contribution by employee and employer.) The same is present for each employee.
  • Form 6A –  Consolidated Annual Return Statement.

Note : The online ECR facility fulfills the purpose of all the above returns .

ProcessFlow_ECR2.0 ( Source EPF website)

FAQs_ECR2.0( Source : EPF Website)