EPF Payment Procedure on EPFO Portal

Last Updated : Nov. 4, 2022, 12:02 p.m.

How wonderful if you have some schemes that can secure your future after retirement? Isn’t it amazing?

The EPF, or Employee Provident Fund, is a scheme designed especially to aid you after retirement. It is considered an ideal retirement fund scheme introduced by MoL, i.e., the Ministry of Labour. However, only registered employees and employers can partake in this beneficial scheme.

How to apply for the EPF payment scheme? Is PF payment online process secure? What is the process of PF payment online?

If you have similar queries, this section will help you answer them.

Details About EPF Account

It is a retirement fund that EPFO introduces and assists the Central Board of Trustees. Under this fund, employers and employees contribute 12% of their salary towards the PF fund to secure retirement. The payment is done after a fixed interval. But, the EPF account is profitable only for employers registered with the Indian Government. The best thing about EPF funds is the interest you receive will be tax-free.

The EPF funds are governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (PF Act). It ensures the safety of the funds’ deposit by the employers and employees.

As per PF Act, if any company has more than 20 employees and each is linked with a contractual basis, it must register under PF Act. However, once any company registers under PF Act, whether it increases its employees or decreases, it will still be governed by PF Act.

EPF Payment Online Procedure

Although the employee and employer both need to put up for the EPF account, the employer makes the payment under the PF Act. From September 2015, it became mandatory for registered employers to make PF payments online.

You can perform PF payments online either via the official website of EPF or the bank. The given below banks are tied up with EPFO:

• PNB
• SBI
• Allahabad Bank
• Indian Bank
• Bank of Baroda
• Union Bank of India
• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank
• Axis Bank

Process for EPF Payment Online

The given below steps can help you in making PF payments online on the EPFO portal:

• Enter credentials of your ECR, i.e., Electronic Challan cum Return, to log in to the online EPFO portal.
• Correctly enter all your details, such as your Address, Name, Establishment ID, etc.
• Select the ‘Payment’ option and click on the ‘ECR Upload’ button.
• Select your ‘Salary Disbursal Rate,’ ‘Wage Month,’ and ‘Rate of Contribution.’
• Upload your ECR text file.
• After uploading the ECR file, you will reach the next screen, where you will see the ‘File Validation Successful’ message. Otherwise, an error message will be displayed.
• Then on the following screen, you will see your TRRN of the sync file.
• Click on the ‘Verify’ option and select the ‘Prepare Challan’ link to generate your ECR synopsis sheet.
• Enter the ‘Admin/Inspection charges’ and select the ‘Challan’ option.
• Press the ‘Finalise’ button and click the ‘Pay’ option against the relevant TRRN.
• Now, go through the ‘Online’ mode for payment options and select the bank where you wish to make the payment.
• Click the ‘Continue’ button, log in to your selected bank’s internet banking website, and make payment.
• Upon successful liquidation, you will get a payment ID and e-Receipt of the transaction.
• At last, EPFO will provide you TRRN against your payment and update your EPFO passbook .

It is also possible that certain banks have other procedures to be followed. So, it will be good to visit their website for more information.

Deadlines for EPF Return and EPF Payment

The PF payment online must be paid on or before the 15th of every next month. From this date, PF from the employer’s salary is deducted. It is also the date to submit both the PF return as well as PF payment.

Late Payment Penalty in EPF

Delaying the payment of the EPF challan will result in penalties. The penalties applicable are given below:

Interest for late payment:

Under section 7Q, per annum interest of 12% is imposed per day on the employers if they forget to deposit their EPF contribution before the deadline.

Penalty for late payment:

Under section 14B, if you fail to deposit EPF challan following penalties will be incurred:

• 5% p.a. interest for a delay of up to two months.
• 10% p.a. interest for a delay of 2 to 4 months.
• 15% p.a. interest for a delay of 4 to 6 months.
• 25% p.a. interest for a delay of more than six months.

Objectives of the Fund

The main objective of launching EPF, the Ministry of Labour, is to provide financial benefits to the government, private, or public sector employees after retirement. Some other objectives of this fund are given below:

• Mobilising the saving of employers and employees by mandating contributions to the fund.
• To provide the maximum benefits on the investments made by its members.
• It allows its members to explore some welfare schemes and conduct research.
• To extend its coverage and reach all those employees who are not under its umbrella.
• To provide social security to the fund’s members.

Eligibility

Members need to follow some eligibility criteria to receive the benefits of EPF. These are given below:

• If an employee’s salary (basic + dearness allowance) is less than INR 15,000 per month, opening an EPF account with your employer is mandatory.
• They should be active EPF members.
• If the employee’s organisation is registered, they can get insurance benefits and retirement from the first day of their joining.
• To register under an EPF account, your organisation must have a minimum of 20 employees.

Note: EPF scheme is not provision for J&K employees.

Documents Required

Some documents need to be submitted to register for an EPF account. These are given below:

For organisations:

• Organisation’s name.
• Organisation’s registration or incorporation certificate.
• If the organisation works under a partnership or LLP, its partnership deed.
• Organisation directors’ ID proof.
• Contact details of all the directors of the organisation.

For employees:

• Employee’s name.
• PAN card of the employee.
• Employee’s ID proof, such as a Passport, Voter ID card, or Driving License.
• Employee’s address proof.
• Contact details of the employee.

For Society or Trust:

• The concerned authority is needed while registering for the organisation.
• Society’s or Trust’s incorporation certificate.
• Moa and Bye-Laws of Trust and Society.
• ID proof of society’s members and its president.
• Contact details of all the members and presidents of the organisation.
• PAN details of the organisation.

Common documents required for all entities:

• Bill of the first trade.
• Bill of the first buy of raw material.
• If registered under GST, attach a GST registration certificate.
• Details of the bank, such as bank address and banker’s name.
• Monthly strengths of the number of employees.
• Employee’s details include the date of joining, date of birth, and their father’s name.
• Records of the wages and salary, all vouchers, and all balance sheets from the joining date to the current date of provisional coverage.
• PF statement and Salary.
• Cross cancelled cheque.