PF Compliance
PF Compliance Online quickly
Every organisation essentially has to maintain monthly compliance for PF & ESIC.
Starting @₹ 15 per month/per employee T&C*.
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Importance of PF Compliance
PF compliance is crucial for both employers and employees. It ensures that employees’ retirement savings are managed and protected in a transparent and accountable manner. For employers, compliance helps in avoiding legal and financial penalties, maintaining a positive work environment, and fulfilling their obligations towards their employees.
Benefits of Choosing Our PF Compliance
- Expert Guidance: Our experienced professionals provide accurate and up-to-date information on PF compliance regulations, helping you navigate the complexities and ensure compliance.
- Customized Solutions: We offer tailored solutions based on the size and nature of your organization, considering specific compliance requirements.
- Timely Updates: We keep you informed about changes in PF regulations and help you adapt to new requirements, ensuring continuous compliance.
- Risk Mitigation: By following proper PF compliance procedures, you minimize the risk of legal penalties, reputational damage, and employee dissatisfaction.
- At BizBandhu, we understand the significance of PF compliance and aim to simplify the process for you. Contact us today to learn more about our PF compliance services and how we can assist you in fulfilling your obligations while ensuring a smooth and hassle-free PF management experience.
Key Aspects of PF Compliance
- PF Registration: We guide employers through the process of PF registration, including obtaining a unique Employer Identification Number (EPFO code).
- Employee Contribution: We provide detailed information on calculating the employee's PF contribution as per the prevailing rates, ensuring accurate deductions, and depositing the contribution with the EPFO within the specified timeline.
- Employer Contribution: We assist employers in determining their share of PF contribution and ensuring timely deposit into the PF account.
- Monthly Reporting: We explain the requirements for monthly reporting, such as generating and submitting PF challans, maintaining records, and filing necessary returns with the EPFO.
- Compliance Audits: We highlight the importance of regular compliance audits to identify any discrepancies or non-compliance issues and provide guidance on rectifying them.
Our Services at a Glance
Provident Fund (PF) Compliance – FAQs
What is Provident Fund (PF)?
Provident Fund is a social security scheme governed by the Employees’ Provident Fund Organisation (EPFO). It ensures long-term savings and retirement benefits for employees in the organized sector.
Who is required to register for PF?
Any company or establishment employing 20 or more employees is mandatory to register for PF under the EPF Act, 1952. Even companies with fewer employees can register voluntarily.
What is UAN (Universal Account Number)?
UAN is a 12-digit unique number assigned to every employee by EPFO. It remains the same throughout their career and helps link multiple PF accounts across different employers.
What is the employer’s contribution towards PF?
- Employer’s contribution: 12% of employee’s basic salary
- Employee’s contribution: 12% of basic salary
Out of the employer’s 12%, 8.33% goes to EPS (Pension), and the remaining to EPF.
What are the monthly PF compliance requirements for employers?
Every employer must:
- Deduct and deposit PF contributions by the 15th of the following month
- File EPF monthly returns via ECR (Electronic Challan cum Return)
- Maintain employee-wise PF records
- Update exits and new joins in the EPFO portal
What is ECR in PF compliance?
ECR (Electronic Challan cum Return) is a monthly return employers must file through the EPFO portal. It contains details of salary, contributions, UANs, and generates a PF challan for payment.
How to make PF payments online?
After ECR filing, the system generates a challan. Employers can pay through Net Banking (via SBI, HDFC, ICICI, Axis, etc.) directly from the EPFO portal.
Is it mandatory for all employees to be enrolled in PF?
Yes, all employees earning basic salary + DA ≤ ₹15,000/month must be enrolled. Those earning above ₹15,000/month can opt-out only if never enrolled before, and with employee consent.
What if the company fails to deposit PF on time?
Delayed PF payment attracts:
- Interest @ 12% per annum (Section 7Q)
- Penalty up to 25% of dues (Section 14B)
Non-compliance can also lead to legal action or prosecution.
What is the PF return due date?
The PF return (ECR filing) and payment must be completed on or before the 15th of every month.
Is PF registration required if there are fewer than 20 employees?
PF registration is not mandatory for employers with <20 employees, but voluntary registration is allowed and once opted, compliance becomes mandatory.
What is the procedure to register for PF?
You can register your business for PF on the EPFO portal:
https://www.epfindia.gov.in
Steps include:
- Business and PAN verification
- Employer DSC upload
- Linking bank details
- Generating Establishment ID
What are the records an employer must maintain under PF?
Employers must maintain:
- Monthly wage and contribution records
- Attendance and salary registers
- UAN details and KYC data
- PF challans and ECR receipts
- Annual returns (if applicable)
Can employees check their PF balance online?
Yes. Employees can check PF balance via:
- EPFO Member Portal
- UMANG App
- SMS or Missed Call using registered mobile and UAN
How can an employee update KYC in PF?
Login to EPFO Member Portal → Manage → KYC. Upload PAN, Aadhaar, and bank details. It must be approved by the employer.
What is the PF withdrawal rule?
- Partial withdrawal allowed for specific purposes (e.g., medical, education, home loan).
- Full withdrawal allowed after retirement, unemployment >2 months, or in case of death.
- TDS applies if withdrawn before 5 years of continuous service.
What are the penalties for PF non-compliance?
- Interest @ 12% p.a. for late payment
- Damages/Penalty: 5% to 25% based on delay period
- Prosecution for serious/defaulting cases under Section 14
What is EDLI in PF?
EDLI (Employees’ Deposit Linked Insurance) provides life insurance cover to employees. Premium is paid by the employer. In case of death during service, nominee gets insurance benefit.
Can a company exit from PF registration?
Yes, if the employee strength falls below 20 and remains so for a sustained period, the company can apply for exit from PF by submitting relevant proofs on the EPFO portal.
What is the benefit of PF compliance for employers?
- Legal compliance
- Avoids penalties and audits
- Employee trust and retention
- Access to government schemes/subsidies
- Promotes formal workforce classification