Waiting for PF Code: How Long Did It Take for Your Startup to Get Approved?

We are a small startup company (<10 employees). We voluntarily applied for a PF setup more than 5 months ago. We have been orally informed that the acceptance was done a few months ago. However, we have not received the intimation about the PF account number. Could anyone with a similar experience advise us on how long it normally takes to obtain the PF code for the company?

Employee and Employer Contributions

In the interim, what happens to the Employee and Employer contributions? If an employee whose PF amount has been deducted terminates employment, what procedure should be adopted?

Thanks,

SHR

Normally, the department takes 1-2 months to clear all the processes. However, sometimes it may take longer due to various reasons as indicated by the department personnel. Therefore, it is advisable to stay in touch with the Registering Officer in your area at the EPF Office. He can provide better assistance in this regard and may also inform you of your EPF code if it has already been allocated.

Submitting EPF Contributions

In the past, there was an option to submit EPF contributions without an EPF Code, which could be done by submitting directly to EPFO with a DD. However, in the present scenario, the challan must be generated online only through the EPF Portal. Hence, until you receive the code and register yourself on the EPF Portal, you will not be able to submit the EPF contribution anywhere. It is recommended to stay connected with the department and obtain the Regd. Code promptly.

Handling Employee Contributions

For employees whose EPF has already been deducted but not yet submitted, and they have also left the job, in such cases, simply submit the contribution to the department and await the claim to be processed for that employee.

I hope this information proves helpful to you. Cheers.

PF Number and Payslip Requirements in India

As per the local practice in India, the PF number must be shown on the payslip. Additionally, you can verify whether your EPF contribution has been made to the government by using the following link: Member Portal.

It is also mandatory for a company to provide payslips to employees. If there is no concept of a payslip in your current company, please ask the HR/Finance Department to provide them.

Regards,

Voluntary PF Registration for Small Establishments

As per the provisions of the act, an establishment with fewer than 20 employees can register itself with the EPFO on a voluntary basis, provided it obtains confirmation from the majority of its employees expressing willingness to comply with PF regulations. Based on my professional experience, PF Code generation typically takes anywhere between 4 to 6 weeks from the date of application, assuming all the necessary documents are in order.

In response to your query, I am unsure about your reference to 'acceptance'. If the inspection process has been completed by the Enforcement Officer, the generation of the code should not exceed one month thereafter.

Employee Contributions and PF Certificate

Regarding employee contributions, the employer is permitted to deduct these amounts only after the Date of Coverage specified in the PF Certificate. Therefore, it is crucial to acquire the PF Certificate and note the date of coverage for subsequent formalities.

If you are located in Pune, please feel free to reach out to me for assistance. I am here to help.

Regards.

Important Point on PF Deduction

One important point I can share with you is that your PF deduction is likely to be applicable from the first day of the inspection month. If the inspector is kind enough to your company, please start deducting employees' contributions from their salaries. Otherwise, your company will have to pay both shares, as it is not easy to deduct 4, 5, or 6 months' contributions from an employee's salary. This can create unnecessary liability for your employer.

I apologize for the error regarding the unnecessary liability. Additionally, could you please check with the PF office why there is a significant delay? Thank you.