EPFO Compliance Guide
Last updated: June 2026 · For Indian businesses
What is EPFO?
The Employees' Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour & Employment, Government of India. It administers the Employees' Provident Fund (EPF), Employee Pension Scheme (EPS), and Employee Deposit Linked Insurance (EDLI) under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
EPF is a mandatory retirement savings scheme that requires both the employer and employee to contribute a portion of the employee's basic salary every month. The accumulated corpus is available to the employee at retirement, resignation, or in specific emergencies.
Who Must Register?
Every establishment that meets any one of these conditions is required to register with EPFO:
- Has 20 or more employees at any point during the year
- Is a factory engaged in any industry specified in Schedule I of the Act with 20 or more workers
- A business with fewer than 20 employees may voluntarily register
Note: Once you cross 20 employees, you must register within 30 days. Penalties apply for late registration.
Contribution Rates (FY 2025–26)
Contributions are calculated on Basic Salary + Dearness Allowance (DA), capped at ₹15,000/month for mandatory EPF purposes (contributions on higher amounts are optional but common).
| Component | Employer | Employee |
|---|---|---|
| EPF (Provident Fund) | 3.67% | 12% |
| EPS (Pension Scheme) | 8.33% | — |
| EDLI (Insurance) | 0.50% | — |
| Admin / Inspection | 0.50% | — |
| Total | 13% | 12% |
* EPS contribution is capped at ₹1,250/month (8.33% of ₹15,000). Employer EPF = 12% − 8.33% = 3.67%.
Key Compliance Steps
Register your establishment
Apply at the Unified Shram Suvidha Portal (shramsuvidha.gov.in). You'll receive an Establishment Code (ECR number).
Generate UAN for each employee
Every employee gets a Universal Account Number (UAN) — a 12-digit permanent identifier that stays with them across jobs.
Collect KYC documents
Link Aadhaar, PAN, and bank account to each employee's UAN via the Employer portal.
Calculate and deduct contributions monthly
Deduct 12% from employee salary and add employer's 13% share. Total remittance = 25% of EPF-applicable wages.
File ECR by the 15th of each month
Upload the Electronic Challan cum Return (ECR) file on the EPFO member portal and make the payment.
File annual returns
Annual returns (Form 3A and 6A) must be filed before 30th April each year.
Common Penalties
| Violation | Penalty |
|---|---|
| Late payment of contributions | 12–18% p.a. interest + damages up to 25% |
| Non-registration after threshold | ₹5,000–₹15,000 fine + prosecution |
| Non-filing of ECR | Damages up to 25% of arrears |
| False information | Up to 1 year imprisonment |
How Shiftelio Helps You Stay Compliant
Shiftelio is built around the Indian payroll and attendance reality. Here is what it does out of the box:
Accurate employee headcount tracking
Shiftelio tracks every active employee with join date and status. You will always know your live headcount — so you know exactly when you cross the 20-employee threshold.
Payroll data ready for ECR filing
Monthly payroll reports include basic salary, DA, and gross pay broken down per employee — the exact figures you need to calculate EPF contributions and generate the ECR file.
Attendance-based salary calculation
Shiftelio calculates pay based on actual attendance records (GPS clock-in/out). No overpayment, no under-reporting — contributions stay accurate automatically.
Employee records and onboarding documents
Store Aadhaar, PAN, and bank details per employee through the onboarding module. All KYC data needed for UAN linking is in one place.
Export-ready reports
Download monthly payroll summaries in CSV/PDF to feed directly into your ECR upload or share with your CA for filing.
Disclaimer
This guide is for informational purposes only and does not constitute legal or financial advice. EPFO rules and contribution rates may change — always verify with the official EPFO portal at epfindia.gov.in or consult a qualified CA / labour law consultant for your specific situation.
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Shiftelio keeps your attendance, payroll, and employee records in sync — so EPFO filing is never a scramble.
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