EPF is a monthly contribution made by the employee and the employer towards a common fund and it is made mandatory by the government. Every month 12% contribution from the basic of the salary of an employee is made by the employee himself and 12% is made by the employer. The contribution made by the employer consists of Provident and Pension fund. These days with the modern technology, it has become very easy for the members to see their PF balance and also for the employers to make the EPF payment towards the accounts of their employees.
The online payment of EPF is a very easy and a smooth process and can be easily done by the employers through the EPFO Unified Web Portal. It also doesn’t matter which bank account they are holding and it is done by the internet banking. As per the mandate each payment must be made by 15th of every month. Earlier there used to be a 5 day grace period to make the payments but now it is also removed. Starting of 2016 brought about certain changes which included online payment of EPF by the companies. In this process, the challan is generated from the official site of EPF and then the payment is being made through net banking. After this step, the employer can be assured that the payment is being deducted and hence the process of EPF payment is completed.
What is the process to pay PF online?
Starting 2017, the format of Electronic Challan cum Return (ECR) has been modified and now it is made on the basis of UAN, irrespective of the fact that the previous PF id of the member is available or not. For making the PF payment online, the employers first need to generate the UAN for new employees. The UAN can instantly be generated using Aadhaar card number. As a matter of fact, Aadhaar card is now a mandatory requirement for the generation of UAN.
The employers can generate the UAN number through the following steps:
- Visit the official website of the Unified portal –
- The employer now needs to log in using the credentials.
- Visit the home and click on the tab – “Member”
- From the menu, choose “Register Individual”
- Fill in the detailed information of the new employee and it includes Name, DOB, Gender, Father/Husband’s name, Date of joining etc. The KYC is mandatory and it includes Aadhaar number as well. Employers can make use of bulk registration in case of more employees joining in one month.
- Save this information.
- Verify the information fed in the portal the details of which shall be displayed at the bottom of the page.
- The employer can now go to the tab named Dashboard and Choose “Active Members”. The UAN Numbers of newly added members will appear here. And now the payment of their EPF can be initiated.
Process to pay the EPF through Unified portal
To initiate the EPF payment, the employers must follow the below mentioned steps:
- Visit the official site of Unified portal – https://www.unifiedportal-emp.epfindia.gov.in/epfo/
- Login using the credentials.
- Go to the home page and choose the tab “Payment”. From the menu, choose the option “Payment (ECR)”
- Now you can download the ECR of previous month by choosing the file type – ECR. It shall be now downloaded in an Excel sheet. The sheet is relatively simple and the details of the sheet are as under:
- Column A will have the UAN number for whom the payment is cleared till November 2016
- Column B will have the Member Name as it appears with the UAN. The details of the new employees will be added to the list
- In Column C the gross salary would be mentioned.
- In Column D the EPF deductions would be mentioned. Please note that if the Gross salary is more than 15000/- the EPF deduction will still be restricted to 15000/-
- Column E and F consist of EPS and EDLI deduction and it will be same as Column D.
- In Column G, to calculate the EPFI CONTRI REMITTED, multiple 12.00% with number mentioned in Column D and round off to 1
- In Column H, to calculate the EPS CONTRI REMITTED, multiply 8.33% with the number mentioned in Column E and round off to 1
- Again in Column I, to calculate the EPF EPS DIFF REMITTED, subtract Column G from Column H and round off to 1
- In Column J, Non-contributing period will be mentioned in days.
- The employer can now save the file in Comma Delimited format – CSV as *.csv
- Open this CSV file using the Notepad application on the system
- Now replace all the Comma with #~#
- Delete the column headings and also the blank lines and save this file in the text file format (*.txt)
- The next step is to upload the file. Click on the “Proceed” button after the Text file is uploaded.
- The employer can now visit the PAYMENT division under different headings which the employer needs to feed in manually. These are the administrative charges for the PF and EDLI. The charges for PF is .85% of total EPF amount. In case this amount is lesser than 500/- mention 500/-. In case of EDLI, .01% of the total EDLI deduction has to be written so if this amount is lesser than 200/-, the employer has to mention 200/-.
- The employer can now verify the details and click on Generate Challan. The TRRN number will be displayed on the webpage.
- They can now easily download the Challan Receipt and the Acknowledgement slip.
- Now the PF can be paid using the “Pay” option. Clicking here will direct you to the payment through online mediums or net banking. The employer must download the receipt of payment confirmation.
Important things to note:
- For the payment of Employee provident fund, the official website of EPF and the e-Sewa portal of the employers can be accessed.
- The employers first need to register themselves for EPF and also need to create their credentials to logging in
- The ECR will be generated and the details shall be uploaded which shall generate a TRRN number – the TRRN number is the Temporary Return Reference Number.
- The employer can check the details of contribution and before proceeding they can authenticate the same.
- After the payment is being done, the acknowledgment slip must be downloaded from the Challan menu and must be stored for future reference.
- This challan which is generated online is valid only for a period of 15 days and employers must make the EPF payment within this duration. If the same is not done in 15 days’ time, the entire process shall be done from the scratch and a new challan would be generated.
Can the employer make the EPF Payment Online through net banking?
Yes, one can also make the online payment of EPF through State Bank of India. Well in reality the bank used for making the payment of Internet banking doesn’t matter and the process remains the same no matter whichever account is being used. But it is the responsibility of the employer to make sure that the name of the bank is included in names of the banks shared by them.
The process to make online EPF payment through SBI, please follow the below mentioned steps:
- Log in to the internet banking as corporate user using the credentials.
- Find out the option of “Payments” or “Transfers” and underneath you will find “EPF” option as well.
- Punch in the TRN or the temporary return number and choose the account which shall be used to remit the online payment of EPF.
- Authenticate the detailed monthly contribution and hit “Submit”
- After this step, the employer will receive a message of their successful transaction and then they must approve e-cheque as present in the inbox.
- The challan can be obtained from the subhead – “Reports and reprint Challan” and the employer can save this or even print this. It is very important to save the copy of Challan for future reference. With this step, the online payment of EPF is now completed.
Employers can make the payment of PF from other banks as well. The process is more or less similar but it is very convenient for the users to understand and make the payments. One can reach out to the customer care helpline in case they still face any issue is making the payments. The duplicate copy of the receipt is also available online. Duplicate copy of challan also can be obtained easily.