As an employer, it is important to comply with various regulations to ensure the smooth functioning of your business. One such compliance requirement is PF return filing, which is the process of submitting the Provident Fund (PF) returns to the Employees’ Provident Fund Organisation (EPFO). In this blog, we will discuss everything you need to know about PF return filing, including the rules, regulations, and procedures involved.
Employee Provident Fund or EPF Return must be filed every month by all the establishments having EPF Registration. You are just a few clicks away from getting your EPF Return filed by TaxsHelpdesk experts!
Employee Provident Fund or EPF Return must be filed every month by all the establishments having EPF Registration. Having an EPF Registration makes it mandatory to file the EPF Returns.
Under the EPF scheme, both employer and employee contribute 12% of basic pay, throughout the tenure of the employment. Employer’s 3.67 percent is transferred into EPF account of employee. Rest 8.33 percent from employer’s side is diverted in Employees Pension Fund (EPF). This amount can be withdrawn by the employee
| Form | Purpose |
|---|---|
| Form 5 | Registration form for new employees for Employee Pension Scheme and Employee Provident Fund |
| Form 10 | Form to update details of employee leaving the organisation |
| Form 3A | Monthly contributions made by the employer and employee for Employee Pension Scheme and Employee Provident Fund |
| Form 6A | Consolidated annual contribution statement |
| Form 12A | Form for exemption from paying income tax on surplus income for non-profitable trusts |
| Account Statement | Annual accounts statements to be filed annually |
The due dates for PF return filing depend on the type of establishment. For private establishments, PF returns must be filed monthly, by the 15th of the following month. For government establishments, returns must be filed quarterly, by the last day of the month following the end of the quarter. Failure to file PF returns on time can result in penalties and legal action.
Delay in payment of PF by employer having PF registration will attract penalty as follows:
| Period of Delay | Rate of Penalty (p.a.) |
|---|---|
| Up to 2 months | 5% |
| 2 – 4 months | 10% |
| 4 – 6 months | 15% |
| Above 6 months | 25% |
Here are some important rules and regulations to keep in mind while filing PF returns:
Filing PF returns regularly has several benefits for both employers and employees, including:
ESI is managed by the Employees' State Insurance Corporation (ESIC) and mandated by the Ministry of Labour and Employment of the Government of India. Both an employer and employee contribute a shared 4% of the employee's gross pay towards the ESI fund each month.
Any business establishment in India employing 10 or more people should voluntarily register with the ESIC within 15 days from the date of applicability
Employee State Insurance (ESI) is a social security scheme provided by the Indian government to benefit the working class. It is administered by the Employees' State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment.
The ESI scheme provides various benefits to employees, including medical coverage, disability benefits, and financial assistance in case of unemployment. It applies to all employees earning up to ₹21,000 per month, and employers must contribute 4.75% of their salary to the ESI fund. Employees are also required to contribute 1.75% of their salary towards the fund.
Companies with ESI registration have to file the ESI returns once every six months in two periods: From 1 April to 30 September and 1 October to 31 March. The ESI returns have to be filed within 42 days from the end of the half year, that is by 12 September for the first period and by 12 May for the second period. It can be done online through Form 5 or offline by visiting the nearest ESI branch office.
The following documents must be maintained regularly for filing ESI returns.
All commercial establishments like corporate organisations, factories, cinema theatres, offices, and institutions have to register for ESI. Often employers and employees get confused with the percentage that goes into this contribution. ESI amount is deducted from an employee’s gross salary, which is the income earned, excluding taxes and health insurance deductions.
The components of the salary for calculating ESI are basic pay, dearness allowance, HRA, incentives, special allowances, etc. The rate of the employee’s contribution is 1.75% of the gross pay, and for the employer, it is 4.75%. Totally, 6.5% of the wages are paid as ESI contributions.
Suppose an employee earns ₹20,000 as his monthly gross pay. The ESI deduction has to be calculated as:
1.75% of ₹ 20,000 = ₹ 350 per month
4.75% of ₹ 20,000 = ₹950 per month
The total contribution towards ESI for an employee with a salary of ₹20,000 per month will be ₹350 (employee contribution) + ₹ 950 (employer contribution) = ₹1,300 per month.
If the employee’s salary is increased to ₹ 25,000 per month during either one of the contribution periods, then the ESI has to be calculated for ₹ 25,000.
The Corporation may levy and recover damages as per the Regulations, at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.
| Period of Delay | Rate of Damages in % p.a. |
|---|---|
| Less than 2 months | 5% |
| 2 to 4 months | 10% |
| 4 to 6 months | 15% |
| 6 months and above | 25% |
The last date to pay your ESI contribution is the 15th of every month. Employers registered under the scheme should deposit the due amount in a bank authorized by the statutory body before the deadline.
Employers should submit half-yearly returns using the Return of Contributions form (RC). For the contribution period of April to September, the due date to file returns is 12th of November and for the October to March period, the last date is 12th of May.
The amount deducted by the employer under the ESI Act is considered entrusted to them by the employee for the purpose of contributing towards the ESI fund. Any delay in payment or non-payment of contribution amounts is considered "Breach of Trust" which is a crime punishable under IPC 406 and 409. It is also an offense under section 85 of the ESI Act.
An employer who fails to pay their contribution has to pay a simple interest at the rate of 12% per annum for each day late.
The ESI department can also levy penal provisions on the employer for delays in payment or non-payment.
| Form | Description |
|---|---|
| Form 01(A) | Form of Annual Information |
| Form 1 | Declaration Form |
| Form 2 | Addition/Deletion in Family Declaration |
| Form 3 | Return of Declaration Form |
| Form 6 | Register of Employees |
| Form 9 | Claim for Sickness/Temporary Disablement Benefit/Maternity Benefit |
| Form 11 | Accident Book |
| Form 12 | Accident Report |
| Form 12A | Claim for Maternity Benefit for Sickness |
| Form 13 | Claim for Sickness or Temporary Disablement or Maternity Benefit |
| Form 14 | Claim for Permanent Disablement Benefit |
| Form 15 | Claim for Dependent Benefit |
| Form 16 | Claim for Periodical Payment of Dependent Benefits |
| Form 19 | Claim for Maternity Benefit and Notice of Work |
| Form 20 | Claim for Maternity Benefit by a Nominee |
| Form 21 | Maternity Benefit - Certificate of Expected Confinement |
| Form 22 | Funeral Expense Claim |
| Form 23 | Life Certificate for Permanent Disablement Benefit |
| Form 24 | Declaration and Certificate of Dependent's Benefits |