PF Registration for Employers with EPFO
Once your business has 20 or more employees, it must register with the Employees’ Provident Fund Organisation (EPFO) and start contributing 12% of wages for each eligible employee, matched by a 12% employee share. Smaller businesses can join voluntarily. We register your establishment on the EPFO Unified Portal and set up the first monthly return.
What it is
Provident Fund is a retirement savings scheme for salaried workers. Every month, a slice of the employee’s pay and a matching amount from the employer go into the employee’s account with EPFO. Part of the employer’s share also funds a pension and a life insurance cover for the worker’s family.
PF registration gives your establishment a PF code. The rules come from the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and its three schemes: EPF, EPS (pension) and EDLI (insurance). The Code on Social Security, 2020, in force since 21 November 2025, keeps the same 20-employee threshold. Registration is done online on the EPFO Unified Portal, signed with the employer’s digital signature.
Companies incorporated through SPICe+ usually receive an EPFO code at incorporation through the AGILE-PRO-S form. That code still has to be activated once you cross the threshold.
Who it applies to
Establishments with 20 or more employees
Factories, shops, offices and service businesses must register once they employ 20 or more people on any day. Contract and casual workers count towards the 20.
Smaller employers who choose to join
Under Section 1(4), a business with fewer than 20 employees can opt in voluntarily when the employer and a majority of employees agree.
Employees earning up to ₹25,000
From 17 September 2026, membership is compulsory for employees whose basic pay plus dearness allowance is up to ₹25,000 a month. Earlier the ceiling was ₹15,000.
Picture a Faridabad packaging unit that grows from 16 to 22 people during the festive season. The day it hits 20, PF applies, even if some of those workers are temporary. And once covered, always covered. If your headcount later drops below 20, the establishment stays under the Act and contributions continue.
How the 12% is split
Both shares are worked out on basic wages plus dearness allowance, not on gross salary. That is different from ESI, which runs on gross wages; see our page on ESI registration for employers. The table shows the split on a monthly basic plus DA of ₹20,000.
| Component | Rate | On ₹20,000 |
|---|---|---|
| Employee share to EPF | 12% | ₹2,400 |
| Employer share to EPS (pension) | 8.33%, on wages up to ₹25,000 | ₹1,666 |
| Employer share to EPF | 12% minus the EPS part | ₹734 |
| EDLI (insurance), employer | 0.50% | ₹100 |
| Administrative charges, employer | 0.50% | ₹100 |
With the higher ceiling, the maximum monthly EPS contribution rises to ₹2,083 (8.33% of ₹25,000), up from ₹1,250. Build it into your salary costing, or let our payroll compliance team rework the numbers.
Why it matters
It is the law once you cross 20
Here is the catch: the obligation starts on the day you reach 20 employees, not on the day you register. Register late and you pay arrears for the gap, with interest.
It helps you hire and keep staff
Job seekers ask about PF. A PF code on the offer letter tells them you are a settled employer.
Government tenders and large clients ask for it
Many tenders and corporate vendor forms ask for your PF code and recent challans. A small IT services firm in Sector 15 bidding for its first large contract will usually be asked for both.
Documents required
About the business
- PAN of the business
- Certificate of incorporation, partnership deed or shop registration
- GST registration, if any
- Address proof of the premises
- Cancelled cheque or bank statement
About the people in charge
- PAN and Aadhaar of directors, partners or proprietor
- Class 3 DSC of the authorised signatory
- Mobile number and email for the portal
About the employees
- List of employees with joining dates
- Aadhaar and bank details for UAN generation
- Salary structure showing basic pay and DA
How it works
Check headcount and the date you crossed 20
In practice, this is the step people skip. We confirm the exact date of coverage from your attendance and salary records. That date decides when contributions start.
Apply on the EPFO Unified Portal
We file the establishment registration with PAN verification and the employer’s DSC. Companies with a SPICe+ code get it activated instead.
Generate UANs for every employee
Each eligible employee gets a Universal Account Number linked to Aadhaar and bank. Workers who already have a UAN from an earlier job keep it.
File the first ECR and pay the challan
We prepare the first electronic challan-cum-return and you pay it online. From then on it is due by the 15th of every month, and our monthly PF return service can take it off your desk.
Timelines
Coverage starts
From the day the establishment first employs 20 people. Apply as soon as you cross the number.
PF code allotment
Usually within a few working days of a complete online application.
Monthly ECR and payment
By the 15th of the following month. For October wages, by 15 November.
What happens if you don’t register
Arrears from the coverage date
EPFO can assess dues under Section 7A from the date you became coverable, including both shares, even if you never deducted the employee’s part.
Interest and damages
Section 7Q charges interest at 12% a year on late dues. Section 14B adds damages on top for the period of delay.
Prosecution
Section 14 of the Act provides for fines and imprisonment for defaults, especially where the employee’s share was deducted but not deposited.
Frequently asked questions
When is PF registration mandatory?
PF registration is mandatory once your establishment employs 20 or more persons on any day. Contract and casual workers count towards that number. The liability starts from that date, not the date you apply, so register promptly. If you are close to 20, we can track your headcount monthly and tell you exactly when the obligation begins.
Can a business with fewer than 20 employees register for PF?
Yes. Under Section 1(4) of the EPF Act, an establishment with fewer than 20 employees can join voluntarily if the employer and a majority of employees agree. After that, all the usual rules apply, including the monthly return by the 15th. Many startups opt in early because PF helps them hire, and it avoids a rush later.
What is the PF wage ceiling now?
The wage ceiling is ₹25,000 a month from 17 September 2026, raised from ₹15,000 under S.O. 5109(E). Employees with basic pay plus DA up to ₹25,000 must now be enrolled. The employer’s 8.33% pension share is also worked out on wages up to ₹25,000. Review your salary structures this year so the new cost does not catch you off guard.
What are the PF contribution rates?
The employee contributes 12% of basic pay plus DA, and the employer contributes another 12%. Of the employer’s share, 8.33% goes to the pension scheme and the rest to the employee’s PF account. The employer also pays 0.50% for EDLI insurance and 0.50% administrative charges. On ₹20,000 basic plus DA, each side contributes ₹2,400.
What documents are needed for PF registration?
You need the business PAN, proof of constitution (incorporation certificate, partnership deed or shop registration), premises address proof, bank details, PAN and Aadhaar of the people in charge, and a Class 3 DSC of the signatory. For employees, keep Aadhaar and bank details ready for UAN generation. With these in hand, the online application takes us about a day.
Our company got a PF code at incorporation. Do we need to register again?
No fresh registration is needed. Companies incorporated through SPICe+ receive an EPFO code through the AGILE-PRO-S form. You still need to activate it on the Unified Portal, add employees and start filing once you cross 20 employees or opt in voluntarily. We check the code’s status and handle the activation for you.
What happens if our headcount drops below 20?
Your establishment stays covered. Under Section 1(5) of the EPF Act, an establishment that has come under the Act continues to be governed by it even if the number of employees later falls below 20. So keep filing the monthly ECR. If the business closes, there is a separate process to report closure to EPFO, which we can manage.
What is the penalty for not registering on time?
EPFO can recover all dues from the date you became coverable, both employer and employee shares, plus 12% simple interest under Section 7Q and damages under Section 14B. The employee’s share you failed to deduct then comes out of your pocket. Registering as soon as you cross 20 is the cheapest option, and arrears can still be regularised if you act early.
Does the Code on Social Security change PF registration?
Not in practice so far. The Code on Social Security, 2020 took effect on 21 November 2025 and keeps the 20-employee threshold and the 12% rates. Registration still happens on the EPFO Unified Portal. We follow the new rules and EPFO circulars as they come out and will tell you if any step in your process needs to change.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
EPFO charges no government fee for registering an establishment. Your ongoing cost is the contribution itself: 12% employee share, 12% employer share, plus 0.50% EDLI and 0.50% administrative charges paid by the employer.
Ready to begin?
Tell us your headcount and salary structure, and we will get your PF code and first return in place.