1. Employee Provident Fund (EPF)
The Employee Provident Fund Scheme is an important and beneficial scheme put forward by the Labour Ministry. It is a perfect retirement fund. It is an equal amount contributory account for both the employer and employee. Such contribution can be made registered employers and employees. Registration of employers can be done voluntarily or through statute mandate. Provisions w.r.t EPF is administered by The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (PF Act).
According to the PF Act, every business employing more than 20 persons including contract employees is mandated to register under the PF Act. Once the PF Act is in place, the employer organization keeps being administered by the PF Act even if the employee number goes below 20 at any time.
Furthermore, it is not expressly applicable to all employees within the registered establishment. Only employees receiving salaries of up to Rs 15,000 are entitled to be captured within the PF Act. Both employee and employer, who are not assigned by PF Act, can willingly register and contribute for PF.
PF Fund is managed by The Employees’ Provident Fund Organization (EPFO) and assisted by the Central Board of Trustees, EPF a constitutional body formed by the PF Act.
2. PF Payment Online
Though PF contributions are made by both the employer and employee, payment is to be remitted to PF account by the registered employer. All establishments are mandated to make PF payment online from September 2015. The employer can make online PF payment either on EPFO website or through authorized bank website where the employer has an account provided the bank allows such. Presently EPFO has an agreement with 10 banks to collect EPFO dues. The banks involved are Allahabad Bank, PNB, Indian Bank, Union Bank of India, Axis Bank, Bank of Baroda, SBI, Kotak Mahindra Bank, HDFC Bank, and ICICI Bank.
3. Steps for PF Online Payment
- Login to the EPFO portal with your Electronic Challan cum Return (ECR) portal credentialshttps://unifiedportal-emp.epfindia.gov.in/epfo/
- Verify that you are providing the correct information in your PF details such as ID, Name, address, exemption status, etc
- From the method of ‘Payment’ drop-down select ‘ECR upload.’
- Select ‘Wage Month,’ ‘Date of Salary Disbursal,’ Contribution Rate and upload ECR text file
- ECR uploaded file will be authorized for predefined conditions, and you will see a message entitled ‘File Validation Successful.’ If ECR file is not validated, it will display an error. In the case of an error ensure you make corrections and upload till it is successfully validated
- In the same page, the generated TRRN will be shown for the uploaded ECR file. Click on ‘Verify’
- Click on ‘Prepare Challan’ to create ECR summary sheet
- Enter Admin Charges and click on the button to ‘Generate Challan’
- After verifying, Click on ‘Finalize’ button
- Click on ‘pay’ against the applicable TRRN
- Select ‘online’ as payment mode and choose from a list of banks shown in the drop-down menu then click on ‘continue.’
- This will redirect you to your bank’s internet banking login website where you will login and pay through internet banking
- After successful payment, Payment id will be generated, and e-Receipt will be generated
- The transaction will be updated at EPFO Portal
- EPFO will provide the payment confirmation against TRRN number
4. Vital links for bank-specific payments
Here is a link to bank-specific payment for few banks as posted on their website:
For further help refer Company Vakil experts.