The Provident Fund Act is the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act), a law in India that mandates retirement and social security benefits like provident fund, pension, and insurance to employees. PF compliance means an employer's legal obligation to register their establishment, enroll eligible employees, contribute both employer and employee shares of salary to the EPF account, file monthly and annual returns, and ensure timely payment of contributions to the Employees' Provident Fund Organisation (EPFO).
Key Aspects of the Act and Compliance
- Applicability:
The Act generally applies to establishments with 20 or more employees, and specific industries listed in the Act.
- Contribution:
Both the employer and the employee contribute a fixed percentage of the employee's basic salary and dearness allowance (DA) to the EPF fund.
- Administration:
The EPFO administers the Act on behalf of the Central Board of Trustees.
- Principal Employer Liability:
The principal employer is responsible for paying both their and the contractor's contributions and administrative charges
The Provident Fund Act is the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act), a law in India that mandates retirement and social security benefits like provident fund, pension, and insurance to employees. PF compliance means an employer's legal obligation to register their establishment, enroll eligible employees, contribute both employer and employee shares of salary to the EPF account, file monthly and annual returns, and ensure timely payment of contributions to the Employees' Provident Fund Organisation (EPFO).
Key Aspects of the Act and Compliance
- Applicability:
The Act generally applies to establishments with 20 or more employees, and specific industries listed in the Act.
- Contribution:
Both the employer and the employee contribute a fixed percentage of the employee's basic salary and dearness allowance (DA) to the EPF fund.
- Administration:
The EPFO administers the Act on behalf of the Central Board of Trustees.
- Principal Employer Liability:
The principal employer is responsible for paying both their and the contractor's contributions and administrative charges