OFFENCES	PENALTY
Avoiding/Causing/ Making False statements or representation	Rs 5,000.00 fine or one year imprisonment or both
Contravention or default of Section 6 or 17	Imprisonment extending to 3 years
Contravening or defaulting of conditions subject to which exemption was granted	Imprisonment extending to 6 months and fine extending to Rs 5,000.00

DAMAGES

Can berecovered under Section 14B for the default in paying the contribution as specified para 32A

PERIODS	RATE %
Less than 2 months	5
2 months and above but less than 4 months	10
4 months and above but less than 6 months	15
6 months and above but less than 6 months	25

NON-APPLICABILITY

1. Registered under the Co-operative Society’s Act or any relating law employing less than 50 persons
2. Belonging or under the Government’s Control whose employees entitled to benefits as per the Government’s Rule.

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Scope of work under the Act’s:

Grant of Exemption/ Relaxation from the provisions of the EPF Scheme’1952 under Para 27AA of EPF & MP Act’1952

Formation of EPF Trust

To get the PF Exemption the application is required to be forwarded to the Labour Secretary, Ministry of Labour & Employees welfare, Government of India, Shram Shakti Bhawan, Rafi Marg, New Delhi through the Regional Provident Fund Commissioner –Delhi (North), in quadruplicate. For this purpose, the following basic documents are required to be prepared: –

1. The Company’s own Provident Fund Scheme based upon the Model Rule of PF Department. In additions to this some provisions are to be added for the benefits of the employees regarding grant of advances and to facilitate the final settlement of their PF accounts. The scheme is required to be got recognized from Income Tax Department with regards specifically to Schedule (IV) of the Income Tax Act’1961.
2. In order to operate the fund, a Trust is to be formed and for this purpose a Trust Deed is to be drafted which should be got registered.
3. There are certain papers/documents such as consent of the employees, resolution of the Board of Trustees, procedure/selection of employees/employer’s representatives to the Board, certificates regarding implementation of the scheme and following the pattern of investments of EPF Department. The conditions regarding governance of the company’s scheme are to be incorporated in the scheme and various other documents such as balance sheet, list of branches, Annexure, Appendix etc. are also to be prepared & attached along with the application.
4. A Board of Trustees consisting of the employees and employers’ representatives is to be formed. The procedure for forming the board, rules for election/selection of the representatives, rules for holding the meetings of the Board, the terms of membership are also required to be prepared for submission to the EPF authorities.

Activities required after the Formation of Trust: –

After the formation of Trust the main activities would be as under: –

PF Remittance to BOT:  –

Calculation of PF dues of all regions payable to the PF Trust within 3 days (or earlier) from the date of receipt of salary/wages

EPS/EDLI Challans:  –

Calculation of amount payable to concerned RPFC’s (Region-wise) in respect of EPS and allied dues manually and further submission of EPS data on EPFO online portal and generation of online EPS challans within 3 days (or earlier) from the date of receipt of salary/wages statement for preparation of cheque payable PF SBI A/C/EPF Organization.

Monthly Returns: –

A return in Appendix ‘A’ is required to be submitted online on the EPFO portal. The return will be prepared manually as well as will be submitted online on or before 25^th of every month.

Withdrawal from EPF accumulation: –

To readdress the grievances if the member- employees in connection with the settlement of claims along with the interest due arising out of Resignations, Retirement, Permanent Settlement Abroad and withdrawal of EPF claim in Form 19.

Withdrawal from EPS accumulation: –

To readdress the grievances if the member- employees in connection with the settlement of claims arising out of Resignations, Retirement, Permanent Settlement Abroad and withdrawal of EPS claim in Form 10-D or 10C.

PF Withdrawal in case of Death: –

We undertake all correspondence work between the Company and the Regional PF Commissioner. For the purpose, draft letters/draft replies are prepared by us and submitted to the management for approval and issuance.

Contractual Employees PF calculation: –

Scrutiny of records of contractual employees those participated in the Trust, and further calculation of their EPF and EPS dues for the settlement of their withdrawals.

Eligibility Register: –

Checking of Recruitment register/joining report register and maintenance/updating of eligibility register.

Disbursement of Loans: –

To disburse the refundable & Non-refundable loans from the fund for various reasons as per the eligibility of the PF members as mentioned in the PF rules of the Trust.

Account Slips: –

To issue the Annual A/c slips showing the PF contribution received during the year along with the interest as par as declared by the EPFO or more than that.  

Investment: –

To invest the amount received as PF contribution, interest received on investments, PF transfer-in and other receipts as per the pattern prescribed by the EPFO.

Audit of Accounts: –

To get the accounts audit of the PF Trust by the certified Chartered Accountant, not more than 2 consecutive year by the same auditor.

Deduction of Income Tax: –

The Board of Trustees or any person authorized by it shall deduct Income Tax as per provisions of Chapter XVII B of the Income Tax Act, 1961, from the payment of accumulated balance due to the members which is not exempted from tax and is liable to be included in total income as provided under Rule 8 or 10 of Part A of the 4^th Schedule of the Income Tax Act.

Form no.13 (R) (transfer of PF/Pension Fund.)

Obtaining of Form no.13 (R) (Transfer form) from new entrants in case he has already been an EPF/EPS member before joining the present establishment, Correspondence with the PF authorities is necessary to effect speedy transfer of fund. Follow-up action is also taken to achieve the transfer of PF accumulations.

Updation of detail of employees: –

• Annexure-II: Employee’s details in Annexure-II are required to update time to time on the EPFO portal.
• UAN No.:Employee’s details under UAN are required to update time to time on the EPFO portal,

Digital Signature: –

Digital signature of Establishment’s authorised representative is required to be submitted on EPFO portal for the approval of UAN data and Transfer claims.

Correspondence: –

The correspondence is required between the organisation and the Regional PF Commissioner. For this purpose, draft letters/ draft replies should be prepared for submission to the management for approval and issue.

Compliance Audit under the act: –

Attending the periodical inspections and coordinating with the inspecting authorities as also replying to the observation recorded in the inspection book.

P.F. Administration

EPF/EPS/EDLI Challans:  –

Computation of contribution (employee & employer share) amount payable and preparation of online Challans for depositing the PF amount with RPFC along EPF A/C No.1, A/C No.2, A/C No.10, No.21, and A/C No22 maintained with the SBI and handling over to Accounts department within 3 days (or earlier) from the date of receipt of salary/wages statement for payment of EPF dues.

Updation of detail of employees: –

• Annexure-II: Employee’s details in Annexure-II are required to update time to time on the EPFO portal, we undertake to prepare and submit in the prescribed formats as and when required.
• UAN No.: Employee’s details under UAN are required to update time to time on the EPFO portal, we undertake to prepare and submit in the prescribed formats as and when required.

Employees Helpdesk: –

We undertake to organize the employee’s helpdesk once or twice in a month at the corporate office to resolve the grievance of employees related to the mentioned Acts and grievances of employees will be resolved through mail or call. Joint Declarations in case of any corrections will be prepared by us and mailed to the concerned person for attestations, post attestations and confirmation same will be collected from Corporate office and will be submitted to the concerned EPF office. 

Digital Signature: –

Digital signature of Establishment’s authorised representative is required to be submitted on EPFO portal for the approval of UAN data and Transfer claims. We undertake to obtain & register the same and further approve the KYC’s, online transfers claims.

Form no.13 (A) (Transfer of PF/Pension Fund.)

To Obtain Form no.13 (A) (Transfer form) from new entrants in case he declares in the form-11 that he was already a member of the EPF/EPS or another recognized trust before joining the present establishment. Correspondence with the PF authorities is necessary to effect speedy transfer of fund. Follow-up action is also taken to achieve the transfer of PF accumulations.

Form no.2-PF/EPS Nomination & Declaration Forms: –

Providing Assistance in submitting nominations of the member UAN portal

Form no.9-& 5(a): –

To prepare & submit the Form-9 initially after the PF registration and Form-5(a) initially and time to time if any changes in the management/ownership with the concerned offices

Withdrawal from PF accumulation: –

Providing assistance in filing online claims & to complete all the required forms/ documents of the outgoing members and to readdress the grievances connection with the settlement of claims arising out of Resignations, Retirement, Permanent Settlement Abroad and withdrawal of Provident Fund accumulations under the PF rule. To support in filling the applications of the members who applies for advances/ loan in the required form-31 & their submissions to RPFC.

 PF Withdrawal in case of Death: –

To obtain all the required forms/ documents form the nominees of the deceased members and to maintain liaison with the concerned authorities for getting the accumulations and for fixing of pension and other benefits under EPS Scheme’1995 immediately

Correspondence: –

We undertake all correspondence work between the establishment and the Regional PF Commissioner. For this purpose, draft letters/ draft replies are prepared by us for submission to the concerned RPFC.

 Inspection under the act: –

Attending the periodical inspection and coordinating with the inspecting authorities as also replying to the observations recorded in the inspection book.

Visit to the concerned PF Office: –

Deputing field staff for the purpose of submission of various Forms and Returns submitted monthly and annually and to liaison with the concerned authorities.

Suggestions to the Management: –

Apprising the management of the amendments effected in the EPF Act & Scheme from time to time and making suggestions for compliance and implementation of the Act & Schemes

Pradhan Mantri Rojgar Protsahan Yojna (PMRPY)

The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Plan Scheme has been designed to incentivise employers for generation of new employment, where Government of India will be paying the full employer’s contribution towards EPF & EPS both w.e.f 01.04.2018 (earlier benefit was applicable for employer’s contribution towards EPS only) for the new employment. This scheme has a dual benefit, where, on the one hand, the

employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A direct benefit is that these workers will have access to social security benefits of the organized sector.

Registration under the Act:  –

Scheme Eligibility: All establishments registered with Employees’ Provident Fund Organisation (EPFO) can apply for availing benefits under the scheme subject to the following conditions:

• Establishments registered with the Employees’ Provident Fund Organisation (EPFO) should also have a Labour Identification Number (LIN) allotted to them under the Shram Suvidha Portal (https://shramsuvidha.gov.in). The LIN will be the primary reference number for all communication to be made under the PMRPY Scheme.
• The eligible employer must have added new employees to his establishment. The New Employee must have a Universal Account Number (Aadhaar seeded) issue after 01.04.2016 and not have worked in any EPFO registered establishment in the past. To avail benefits under the scheme, the new employee must be earning upto

(and including) Rs 15000/per month. The details of the new employee will be verified from the EPFO database of establishments and member details.

• For new establishment coming into existence/getting registered with EPFO after 01st April, 2016, the employer can avail of PMRPY benefits for all new eligible employees.
• The PMRPY scheme is targeted for employees earning wages less than or equal to Rs 15,000/- per month. Thus, new employees earning wages more than Rs 15,001/- per month will not be eligible. A new employee is one who has not been working in an EPFO registered establishment on a regular basis prior to 01st April, 2016 and will be determined by the allocation of a new Aadhaar seeded Universal Account Number (UAN) on or after 01.04.2016. In case the new employee does not have a new UAN, the employer will facilitate this through the EPFO portal.
• The employers will continue to get the 12% contribution paid by the Government for these eligible new employees for the next 3 years, from the date of acquiring a new UAN or 01.04.2018, whichever is later, provided they continue in employment in any EPFO registered establishment. To clarify, if such new employee changes his job to a new establishment, the new establishment can avail of the scheme benefits by registering this employee in the PMRPY Portal for the balance period. The 12% contribution will be paid by GOI after the employer has PMRPY Scheme Guidelines To avoid any penalty on the EPF/EPS contribution, the employer is advised to submit the PMRPY online form at the earliest, preferably by the 10th of the following month.

We undertake to register the establishment under the PMRPY.

Note* Presently registrations & compliances under PMRPY has been stopped.