What is EPF (Employees' Provident Fund)?
- EPF (Employees' Provident Fund)
- EPF is a mandatory retirement savings scheme for employees earning up to ₹15,000/month basic wage, requiring 12% contribution from both employee and employer under the EPF Act, 1952.
EPF Contribution Rules
Employee: 12% of basic + DA deducted from salary. Employer: 12% of basic + DA — of which 8.33% goes to EPS (Employee Pension Scheme, capped at ₹1,250 per month), and the remainder to EPF. Employer also pays 0.5% as EDLI (insurance) and 0.5–1.1% as admin charges. Contributions are due by the 15th of the following month.
EPF Compliance
EPFO registration is mandatory when a business employs 20 or more employees. File monthly ECR (Electronic Challan-cum-Return) via the EPFO Unified Portal. Annual PF return via Unified Shram Suvidha Portal. ERPNext's payroll module calculates EPF automatically and the contribution data can be exported for ECR file generation.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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