As per the terms and conditions laid in the Employees’ Provident Fund Scheme, the employer and the employee have to make contributions towards the fund. A contribution needs to be 12% of the Basic Dearness Allowance, along with which an employee retaining allowance and a cash component of food allowance needs to be made, provided this contribution is limited to under INR 6,500 per month. The employee has the choice to increase their contribution voluntarily, on condition that both the employee and employer agree for the same.
This contribution has been set lower at 10% for companies covered before 22nd September 1997, employing fewer than 20 employees. Sick industrial companies, companies which suffer financial losses equal to their net worth and those who are in the business of manufacturing bricks, beedi, jute, coir and guar gum products also have a lower contribution limit of 10%.
The Employees’ Provident fund Scheme is in implementation throughout the boundaries of the country, with the exception ofthe state of Jammu and Kashmir. This ensures that every eligible person is covered by the Scheme, regardless of his/her place of residence or work, making it acomprehensive scheme for the Indian public.
The EPFO members are allowed to withdraw cash as advances from their PF Account for purposes like education, marriage, medical care etc., subject to the terms and conditions as mentioned below.
In recent times, the dynamics of an employer-employee relationship has changed a lot. Retaining employees has become a difficult task for the company. The employee not only looks out for his/her present status and growth, but also for their future stability. Due to this, companies have started to provide various employee welfare schemes. Another reason for implementing such schemes is the rules and regulations of the country (India) in which a company is established. One of the employee welfare initiatives is the Provident Fund.
The EPFO members are allowed to withdraw cash as advances from their PF Account for purposes like education, marriage, medical care, etc., subject to the terms and conditions as mentioned below.
What is Employee Provident Fund Scheme 1952?
Employee Provident Fund Scheme 1952 is a vital piece of Labour Welfare legislation endorsed by the Parliament to provide social security benefits to the workforce of the country. Currently, the Act and the Schemes framed provide for three types of benefits to the members:
Who is eligible for employee provident fund?
All organisations employing 20 or more persons come under the purview of the Act from the very date of set up, subject to completion of other terms and conditions. Those organisations which do not have the prescribed number of employees, but are willing to register themselves under the Act to provide the benefits of Provident Fund to their employees, can register voluntarily with the local or regional provident fund office.
What is Employees Provident Fund Scheme?
Employees Provident Fund Scheme is a welfare scheme for the workforce of the country. In this scheme, acontribution is made to the fund by the employer and employee both which shall be claimed by the employee during the time of his retirement. A pre-decided part of the salary is transferred to the Provident Fund Account of the employee. The scheme was implemented to build retirement savings a salaried individual and provide his/her family financial protection.
Is it mandatory to deduct PF from salary more than INR 15000?
No, it is not mandatory to deduct PF from salary more than INR 15000.
Can employer contribute more than 12% for PF?
The employer can’t contribute more than 12% per cent. Employer's contribution is fixed at 12%, even if the employee decides to increase his/her contribution more towards the PF.
What is the meaning of claim against para 69 2?
The meaning of claim against para 69 2 in PF is withdrawn by the member due to resignation, leaving service etc.
Is PF mandatory for employers?
A company or organisation is required legallytodeduct PF, both on behalf of itself and its employees, if it fulfils the requirement of coverage under the Employees' Provident Funds and Miscellaneous Provident Act, 1952. The basic requirements are mentioned below-
How PF is calculated on salary?
In order to calculate the Provident Fund amount, one can use a number of online Provident Fund Calculators. These online calculators are user friendly, easy and free of cost. For calculating using an online calculator, add the investment amount and duration of PPF in the respective column. To calculate your PPF interest, one can follow these steps: F = P[{(1+i)n-1}/i], F (Maturity Amount) P (Annual Instalments paid) n ( No. of years or Tenure of PF) i ( Rate of Interest) It is to be noted that the interest on PF is compounded on a yearly basis.
Can I withdraw employer share in PF?
As per the current rules, you can withdraw up to 90 per cent of your entire Provident Fund accrued balance (employee share + employer share) on reaching 54 years of age or within 1 year left before actual retirement, whichever is later. Employer contribution will continue to accumulate and can only be withdrawn after reaching 58 years of age.
