EPF Payment

5paisa Research Team Date: 27 Feb, 2024 05:47 PM IST


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The full form of EPF Payment is Employee Provident Fund Payment. This PF is a mandated retirement savings system in which both the employee and the employer contribute a certain proportion of the employee's income to the fund. EPF Payment refers to both parties' regular contributions to this fund, which provides financial stability for employees throughout their retirement years. Proper and timely EPF payments are critical to ensuring employee welfare and regulatory compliance inside organisations.

What is an EPF Payment?

An EPF plan stands as a cornerstone retirement savings plan, aiding individuals in building a substantial corpus for their future. Instituted under the Employees’ Provident Funds Act of 1952, the scheme is overseen by the Employees’ Provident Fund Organisation (EPFO), ensuring effective management and governance.

Contributions to the EPF payment are made monthly, with individuals allocating 12% of their basic salary towards the fund. This contribution is mirrored by employers, doubling the accumulation rate. Upon retirement, beneficiaries receive a lump sum payout encompassing both personal and employer contributions alongside accrued interest. Mandatory for companies with a staff count exceeding 20, this coverage extends to smaller establishments as well, fostering wider inclusion across the employment landscape. 

Benefits of Contributing to EPF

Here's a tabular breakdown highlighting the benefits of contributing to the EPF:

EPF Benefits Description
Tax-deductible Contributions Contributions to EPF accounts are tax-deductible under Section 80C of the Income Tax Act, reducing taxable income.
Tax-free Interest The interest earned on EPF contributions is tax-free, providing additional savings benefits for contributors.
Continuation of Interest Even if an EPF account remains inactive for more than three years, it continues to accrue interest, enhancing the overall savings corpus.
Withdrawal Eligibility Withdrawals from EPF accounts are permissible after five years of continuous service, barring instances of employment termination.
Employees' Pension Scheme (EPS) Employers contribute 12% of salaries to the Employees' Pension Fund, with 8.33% of the employer's share transferred to the EPS.
Lifetime Pension Guarantee Ten years of contributory membership under the EPS ensures eligibility for a lifetime pension.
Employees Deposit Linked Insurance (EDLI) Scheme EPFO's insurance scheme provides a lump-sum payout to nominated beneficiaries in case of the insured individual's demise during employment.
Partial Withdrawals EPFO allows partial withdrawals for specific needs such as medical expenses, home loan repayments, and unemployment after 5-10 years of service.
Investment Opportunities A portion of EPF funds (5-15%) is invested in Exchange-Traded Funds (ETFs), offering potential for future growth, although not reflected directly in members' accounts.
Asset Allocation EPF funds are diversified across government securities, debt instruments, money market instruments, and infrastructure trusts, ensuring balanced returns.
Nominee Benefits In the event of the employee's demise, the accrued EPF fund balance is passed to the nominated beneficiary, providing financial support to the family.
Account Accessibility Employees can access their PF accounts through the EPF member portal using their Universal Account Number (UAN), facilitating ease of management.
Portability EPF accounts can be transferred when changing jobs, ensuring continuity of retirement savings and hassle-free management.


Monthly EPF Payment; Employer and Employee

In adherence to EPF regulations, both employers and employees make equal contributions to the EPF. The contribution percentage, typically set at 12% of the employee's minimum wage and dearness allowance, constitutes the EPF donation figure. This contribution structure ensures a fair distribution of responsibility between employers and employees toward building a secure retirement corpus. The specifics of EPF contributions entail that both parties allocate an equal share of the minimum wage, with the EPF contribution being a standardised percentage across most worker categories. This systematic approach underscores the commitment to fostering financial security and stability for employees through collective savings efforts.

Here's a breakdown of the specifics regarding employee and company EPF contributions:

Contribution of employees to the EPF 
The employer withholds 12% of the worker's pay for the PF payment, which includes the dearness allowance and base pay monthly. The employee's EPF account is then immediately credited with the amount that was deducted, guaranteeing an effortless and timely build-up of funds for their retirement savings.

Contribution of the employer to the EPF
Employers also contribute an equal amount to the EPF fund on behalf of their employees. This contribution mirrors the employee's contribution, ensuring equal participation in building the retirement corpus.

Making PF Online Payment
All businesses and organisations in India are required by law to process provident fund payments electronically. Subscribers may make the EPF online payment through either the EPFO website or the website of any authorised bank. 
However, employers are obligated to open an account for this purpose or utilise the net banking service of the same bank for seamless transactions. This digitised approach ensures the efficient and secure handling of provident fund payments in compliance with government regulations.

The Below Mentioned Banks have a Tie-up with EPFO to Make Online Provident Fund Payment

Here is a list of banks that have a tie-up with EPFO to facilitate online Provident Fund payment:

• State Bank of India (SBI)
• ICICI Bank
• HDFC Bank
• Axis Bank
• Punjab National Bank (PNB)
• Bank of Baroda (BOB)
• Canara Bank
• Union Bank of India
• Bank of India (BOI)
• Indian Bank
• Kotak Mahindra Bank
• Allahabad Bank

Steps to Make EPFO Online Payment

Here's a detailed guide on how to make an EPF payment online:

• Step 1: Register on the EPFO Portal

Employers need to register themselves on the EPFO portal (https://www.epfindia.gov.in) using their establishment's details, including the Establishment Identification Number (EIN) and other relevant information.

• Step 2: Login to the EPFO Portal

After registration, employers can log in to the EPFO portal using their username and password generated during registration.

• Step 3: Access E-Sewa Portal

Once logged in, navigate to the "E-Sewa" section on the EPFO portal. This section allows employers to make online payments.

• Step 4: Select Payment Option

Under the E-Sewa section, choose the "Challan/ECR" option to proceed with the online payment.

• Step 5: Fill in Payment Details

Enter the necessary details such as the wage month, contribution rate, number of employees, and total contribution amount.

• Step 6: Generate Challan

After entering the payment details, click on the "Generate Challan" button. This action generates a Challan containing the payment details and a unique Challan Identification Number (CIN).

• Step 7: Verify Payment Details

Review the Challan to ensure that all payment details are accurate before proceeding with the payment.

• Step 8: Proceed with Payment

Select the preferred payment mode among the options available internet banking, debit card, credit card, or any other approved payment method to complete the EPF challan payment process. 

• Step 9: Receive Payment Confirmation

Once the payment is successfully processed, a confirmation message or receipt will be displayed on the screen. Employers may also receive an email or SMS confirmation of the payment.

• Step 10: Download Payment Receipt

After completing the payment, it is advisable to download and save the payment receipt for future reference. The receipt contains details such as the Challan Identification Number (CIN) and transaction reference number.

Deadlines for EPF Payment and EPF Return

In India, EPF payments for employers are typically due every month. The deadline for the payment of EPF contributions is usually the 15th of the following month. For instance, if you are making EPF contributions for January, the deadline for payment would be February 15th.

As for EPF returns or filings, employers are required to file returns with the EPFO periodically. The specific frequency of these returns can vary depending on the size and nature of the organisation. However, a common requirement is the filing of an annual return, which is due by the 30th of April following the end of the financial year.

Late Payment Penalty in EPF

Late EPF Challan payments incur two types of penalties: interest under Section 7Q and penalty under Section 14B.

• Under Section 7Q, a 12% per annum interest rate is applied for every day the EPF contribution remains unpaid after the deadline.

• Section 14B penalties vary based on the duration of the delay:

• A 5% per annum interest rate is imposed for delays of up to 2 months.
• Delays of 2 to 4 months attract a 10% per annum interest rate.
• For delays of 4 to 6 months, the interest rate rises to 15% per annum.
• Delays exceeding 6 months incur a penalty of 25% interest per annum.


Eligibility for EPF contributions typically includes:

• Employee Status: Employees who earn a basic salary of up to Rs. 15,000 per month are mandatorily covered under the EPF scheme. 

• Employer Coverage: All organisations with 20 or more employees are required to register for EPF and facilitate contributions for eligible employees. 

• Age: Employees within the age range of 18 to 58 years are eligible to participate in the EPF scheme.

• Employment Type: EPF coverage applies to various types of employment, including permanent, temporary, contractual, and part-time positions.

Documents Required

Documents required for EPF enrollment and compliance typically include:

• Employee Documents:

• Aadhaar card
• PAN card
• Bank account details
• Passport-sized photographs
• Form 11: Declaration form for employees opting out of EPF if eligible.
• Form 2: Nomination form for EPF benefits in case of the employee's demise.

• Employer Documents:

• Registration Certificate: Proof of the organisation's registration with relevant authorities.
• Address Proof: Such as utility bills or rental agreements for the registered office.
• EPF Registration Certificate: Issued upon successful registration with the EPFO.
• Form 5A: Annual return declaration by the employer.

• Miscellaneous Documents:

• Salary Details: Including basic salary, dearness allowance, and other allowances.
• Form 12A: Monthly EPF contribution statement submitted by the employer.

PF Toll-Free Number

The toll-free number for the EPFO in India is 1800-118-005. This number is provided for assistance related to EPF matters, including queries, grievances, and assistance with EPF services. It's a free-of-cost helpline accessible to employees, employers, and other stakeholders seeking support or information regarding EPF contributions, withdrawals, transfers, and other related services. 


In conclusion, EPF plays a pivotal role in securing financial stability for employees worldwide. Through its systematic savings scheme, EPF ensures a reliable source of income post-retirement, fostering economic security and social well-being. It stands as a cornerstone in empowering individuals toward a prosperous future.

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Frequently Asked Questions

The UAN (Universal Account Number) is a unique identification number assigned to every employee contributing to EPF in India. It serves as a single umbrella for multiple Member Identification Numbers (Member IDs) allotted to an individual by different employers.

To withdraw EPF after switching jobs, individuals can submit a withdrawal request online through the EPFO portal or by filling out Form 19 and submitting it to the regional EPFO office.

Voluntary Provident Fund (VPF) can be withdrawn upon retirement, resignation, or after two months of unemployment. However, premature withdrawal may be subject to certain conditions and penalties.

Yes, both the employee's and employer's contributions to the EPF account are tax-exempt under Section 80C of the Income Tax Act, subject to certain conditions and limits.

No, employees cannot directly join a Provident Fund Scheme. Participation is typically facilitated through their employer, who deducts contributions from their salary and remits them to the PF.

You can check your EPF payment by logging into the EPFO portal using your UAN and password. 

No, an employee cannot continue as a PF member after retirement. Upon retirement, the PF account transitions into a pension account, providing a regular pension to the retiree.

For employees paid on a piece-rate or daily basis, EPF contributions are typically calculated as a percentage of their total wages, including basic pay, dearness allowance, and retaining allowance, subject to the statutory limit.

Yes, initial requirements for making an online EPF payment typically include having a registered establishment code, an active employer EPF account, and access to the EPFO's online payment portal or other authorised payment platforms.