Employees’ Provident Fund (EPF) Registration and Compliance in Hyderabad

The Employees’ Provident Fund (EPF) is a vital social security scheme managed by the Employees’ Provident Fund Organization (EPFO) under the Ministry of Labour and Employment, Government of India. This scheme, governed by the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, ensures financial security for employees by providing retirement benefits, pension, and insurance coverage.

Businesses in Hyderabad employing 20 or more workers are required to register under the EPF Act. However, even businesses with fewer employees can voluntarily opt for registration. At VPS & Associates, Hyderabad, we provide expert services for new EPF registrations, voluntary enrollments, amendments, and filing of monthly and annual returns. Our team ensures smooth compliance with all EPF-related obligations.

Who Needs to Register Under EPF?

Any establishment in Hyderabad that employs 20 or more workers must compulsorily register with EPFO. Even if the workforce is below 20, the business may opt for voluntary registration to avail of employee benefits.

Counting Employee Strength for EPF Registration
If a business has employees on its payroll and also hires contract workers (such as security guards, housekeeping staff, etc.), these contract workers must also be counted. If the total workforce, including contractual employees, exceeds 20, EPF registration becomes mandatory.

Excluded Employees
Certain categories of individuals are not considered employees under the EPF Act:

• Casual laborers
• Apprentices/trainees
• Working partners or managing directors
• Domestic workers

Once a company registers under EPF, it must continue to comply with EPF regulations even if the number of employees falls below 20 at a later stage.

EPF Contribution Breakdown

EPF contributions are mandatory for employees earning a basic salary of up to ₹15,000 per month. Employees earning above ₹15,000 per month can voluntarily opt for EPF. Once enrolled, an employee must continue contributing even if their salary exceeds ₹15,000 in the future.

Both employees and employers contribute 12% of the employee’s basic salary towards EPF. The employer’s contribution is divided into different components, as detailed below:

Particulars	EPF	EPS	EDLI	Admin Charges (EPF)	Admin Charges (EDLI)	Total Contribution
Employee Contribution	12%	0%	0%	0.75%	0.75%	13.50%
Employer Contribution	3.67%	8.33%	0.50%	3.25%	3.25%	19.00%
Total Contribution	15.67%	8.33%	0.50%	4.0%	4.0%	32.50%

Employees also have the option to contribute more than 12% under the Voluntary Provident Fund (VPF), allowing additional savings beyond the mandatory limit.

Tax Benefits of EPF Contributions

EPF contributions come with significant tax benefits:

• Employee contributions qualify for tax deductions under Section 80C of the Income Tax Act.
• Withdrawals after five years of continuous service are tax-free, including the interest earned.
• Withdrawals before five years attract taxes based on applicable income tax slabs.

EPF Compliance Timeline

To remain compliant with EPF regulations, businesses must adhere to specific deadlines:

Particulars	Compliance Timeline
EPF Registration	Within 15 days from applicability
Amendments (if any)	Within 15 days of changes
Monthly EPF Payment	By the 15th of the following month
Annual Return Filing	By April 25 each year

In certain situations, the government may reduce the statutory EPF contribution rate from 12% to 10%, especially during economic challenges, to ease financial burdens on businesses and employees.

Other Mandatory Registrations for Businesses in Hyderabad

Apart from EPF registration, businesses in Hyderabad may also require the following registrations to operate legally and efficiently:

• GST Registration
• Profession Tax Registration
• Telangana Shops & Establishments Act Registration
• MSME/Udyam Registration
• Employee State Insurance (ESI) Registration
• Import Export Code (IEC)
• Trade License from GHMC (Greater Hyderabad Municipal Corporation)