PF registration fees
The Employees' Provident Fund (EPF) registration process for employers in India does not involve any government-mandated registration fees. However, employers are required to make certain monthly contributions and may incur administrative charges.
💰 Employer Contributions to EPF
Both the employer and employee contribute to the EPF:
Employee's Contribution: 12% of basic wages and dearness allowance.
Employer's Contribution:
EPF: 3.67% of basic wages and dearness allowance.
Employees' Pension Scheme (EPS): 8.33% of basic wages and dearness allowance, subject to a wage ceiling of ₹15,000 per month.
Employees' Deposit Linked Insurance (EDLI): 0.5% of basic wages and dearness allowance, subject to a wage ceiling of ₹15,000 per month.
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For establishments with fewer than 20 employees, the EPF contribution rate is reduced to 10%, with the same distribution between employer and employee.
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🧾 Administrative Charges Payable by Employers
Employers are also required to pay administrative charges for the management of the EPF scheme:
Administrative Charges: 0.50% of the total wages, subject to a minimum of ₹500 per month for establishments with contributory members.
No Members in a Month: If there are no contributory members during a month, a minimum administrative fee of ₹75 is applicable.
EDLI Administrative Charges: ₹200 per month, rounded up.
No EDLI Members: If there are no EDLI members during a month, a minimum administrative fee of ₹25 is applicable.
These charges ensure the smooth administration and compliance of the EPF scheme and its associated benefits.
📝 Consultancy Charges for PF Registration
While the government does not charge a fee for EPF registration, employers often engage professional consultants to assist with the registration process and ongoing compliance. Consultancy fees can vary based on the services provided:
Basic Registration: ₹3,500 to ₹4,500, covering application filing and document submission.
Comprehensive Services: ₹6,000 to ₹9,500, including obtaining Universal Account Numbers (UANs) for employees, digital signature registration, and initial return filing.
These fees are typically one-time charges for the registration process.
📌 Key Points to Remember
Mandatory Registration: Establishments with 20 or more employees must register for EPF within 30 days of reaching this threshold.
Voluntary Registration: Establishments with fewer than 20 employees can voluntarily register for EPF.
Ongoing Compliance: Employers must file monthly returns and make timely contributions to ensure compliance.
Penalties for Non-Compliance: Failure to register or comply with EPF regulations can result in penalties.