The Employees Provident Fund (EPF) Scheme, 1952, is a retirement benefit introduced by the Indian Government to promote savings among employees in recognition of their hard work and dedication. The Employees' Provident Fund Organization (EPFO) manages the EPF Scheme. EPFO covers all formal sector organizations with 20 or more employees.Read more
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Besides deducting the amount, companies are required to fill EPF Form 5 each month and submit it to the regional EPF Commissioner.
Let us explore what EPF Form 5 is and how it helps organizations fulfil their provident fund obligations towards their employees.
The EPF Form 5 constitutes paragraph 36(2) (a) of the Employees’ Provident Funds Scheme, 1952. Every month, companies covered under the EPFO must fill the EPF Form 5, which contains details about the new employees eligible for the EPF services. It is then submitted to the regional EPF Commissioner’s office.
Once an employee is enrolled in the EPF Scheme, they are allotted a Universal Account Number, against which the employer’s and their EPF contribution gets deposited.
The EPFO thus ensures that all companies under its jurisdiction are registered under EPF. Therefore, a registered employer must provide EPF facilities to all its employees.
Even if an employer does not recruit any new employees during the previous month, they still have to fill an EPF Form 5 every month and mention ‘Nil’ under the employee details column.
EPF Form 5 is crucial for companies and new employees, especially those who were not part of the EPF Scheme earlier. Better job opportunities make job seekers seek new employment.
If they join a company covered by EPFO, then, through EPF Form 5, the said employees begin to reap the benefits under the provisions of the EPF, ensuring better social welfare and financial security.
By filling EPF Form 5 every month, companies who are part of the EPF Scheme can accurately track new employees, ensuring that each of them is covered under the scheme. The form helps companies fulfil their provident fund obligation towards their employees properly.
EPF Form 5 has different sections to be duly filled up by employers before its monthly submission:
Establishment/Factory Name and Address
Code number of the Factory/Establishment
Employee details (serially)
Father’s name (husband’s name in case of married women)
Date of birth
Date of joining the EPF Scheme
The total number of years spent in the previous service on the date of joining the scheme, including Scheme Certificate where applicable
Remarks, if any
Employer’s signature or signature of an authorized officer of the factory/establishment
The date on which EPF Form 5 is filed
While filling the EPF Form 5, the employer must also refer to the provisions of Form 2 and Form 11 of the EPF Scheme, relating to the particulars about the nomination and basic EPF particulars.
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The EPF Form 5 can be downloaded as a PDF from the official website of EPFO. Employers can get the form printed to be duly filled in for submission.
Filing of EPF form 5 is the ultimate responsibility of the employer. According to the provisions of the EPF Scheme, EPF Form 5 has to be submitted before the 25th of the month following the new employee recruitment.
As a company files EPF Form 5, their new employees become members of the EPF Scheme and can avail of its key benefits, such as:
An employee enrolled for the EPF Scheme can claim tax deduction under Section 80 C of the Indian Income Tax Act 1961. To claim a tax deduction, the employee must contribute a specific amount from their salary towards their PF account every month. The amount earned via the EPF Scheme is also eligible for a tax deduction.
Note: Tax benefit is subject to changes in tax laws.
The EPF Scheme also provides interest on the deposited EPF amount. For the financial year 2020–21, the interest rate is applicable at 8.5%. The accumulated EPF corpus on maturity helps an employee with seasonable growth and capital appreciation, benefiting them over time.
EPF is a good retirement savings option as an employer contributes 8.33% of the EPF contribution towards the Employee Pension Scheme (EPS), a long-term saving benefit scheme. It ensures that post-retirement employees have sufficient funds at their disposal.
EPF allows partial withdrawal from the scheme if an employee encounters any emergency. It can help an employee meet an urgent cash crunch immediately without resorting to other means of getting funds. The partial withdrawal of EPF funds can be applied towards meeting various expenses, including medical, wedding, and education.
The EPF Scheme has a nomination facility. If a member enrolled under the scheme dies, the amount received, including the interest portion, will be transferred to the designated nominee. This helps the families to manage their financial needs when the working member is no more.
EPF Form 5 holds great significance for organizations and their new employees registered under the EPF Scheme. Through EPF Form 5, new members get covered by the EPF’s provisions, entitling them to better social welfare and security benefits.
As companies fill the EPF Form 5, it officially confirms the new employee enrollment in the EPF Scheme, 1952, and helps new employees rightfully avail of all its benefits.
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