Q1) What is the Contribution for Provident Fund both by the Employer & Employee?

Ans : The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.

Q2) Is it Compulsory for the all the employees to contribute to the Provident Fund?

Ans : Employees drawing basic salary upto Rs 6500/-  (Rs. 15000/- from 01.09.2014) have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- ( (Rs. 15001/- from 01.09.2014)) have an option to become member of the Provident Fund .

Q3) Is it beneficial for employees who draw salary above Rs 15001/- to become member of Provident Fund?

Ans Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.

Q4) What if an employee while joining establishment has a basic salary of Rs 11200 and after some period of time his basic salary increases above Rs. 15001/-, does he have an option to terminate his member ship form the Provident fund act?

Ans : Employee who while joining the organisation has a basic salary above Rs 15001/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 15001/- but after some period of time their basic increases above Rs 15001/- have to compulsorily continue to be member of provident Fund.

Q5) What is the contribution percentage to the Provident fund and Pension Scheme?

Ans : Employers contribution of 12% of basic salary is totally deposited in provident fund account Whereas out of Employees contribution of 12% , 3.67% is contributed to Provident fund and 8.33% is deposited in Pension scheme.

Q6) Which form has to be filled while becoming member of provident fund?

Ans : Nomination Form No 2 has to be filled to become a member of the Provident fund, form is available with HR department.

Q7 ) Which form has to be filled while transferring provident fund deposit ?

Ans : You just have to fill form no 13 to transfer your P.F amount.

Q8 ) What is the provision of the scheme in the matter of nomination by a member ?

Ans : Each member has to make a nomination to receive the amount standing to his credit in the fund in the event of his death. If he has a family, he has to nominate one or more person belonging to his family and none other. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires family, such nomination becomes invalid and he will have to make a fresh nomination of one or more persons belonging to his family. You cannot make your brother your nominee as per the Acts.

Q9 ) When is an employee eligible to enjoy pension scheme ?

Ans : For an employee to become eligible for Pension fund, he has to complete membership of the Fund for 10 Years.

Q10 ) What does it mean by continuous service of ten years ?

Ans : When we say continuous service of 10 years in Employee Pension Fund, we mean to say that during services, for e.g., an employee who has worked with X company for say 3 years, then he resigned from that organisation and joined Y company, wherein he worked for 2 years, then resigned from there to join establishment for 5 years but during these 10 years of service he has not withdrawn but transferred his Employee pension fund, then we say continuous service of ten years.

Q11 ) When can an employee avail the benefit of Employee pension fund scheme which he has contributed during his ten years of continues service /

Ans : An employee can avail the benefit after completion of 58 years of service.

Q12 ) What happens to the provident fund & Employee Pension fund if an employee who wants to resign from the service before completion of ten years of continues service?

Ans : Employee can withdraw the PF accumulations by filling Forms 19 & 10 C which is available with the HR department.

Q13 ) What is this 19 & 10C form ?

Ans : Form No 19 is for Provident fund withdrawal & Form No. 10 C is for Pension scheme withdrawal.

Q14 ) Do we get any interest on the amount which is deposited in the Provident Fund account?

Ans : Compound interest as declared by the Govt. is given for every year of service.

Q15 ) What is the accounting year for Provident fund account?

Ans : Accounting year is from March to February.

Q16 ) What are the benefits provided under Employee Provident Fund Scheme?

Ans : Two kinds of benefits are provided under the scheme-

a) Withdrawal benefit

b) Benefit of non -Refundable advances

Q18 ) What is the purpose of the Employee’s Pension Scheme ?

Ans : The purpose of the scheme is to provide for

1) Superannuation pension.

2) Retiring Pension.

3) Permanent Total disablement Pension

Superannuation Pension: Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years.

Retirement Pension: member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years.

Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.

Q19 ) How much time does it take to receive P.F & pension money if an employee resigns from the Service?

Ans : Normally the procedure for receiving P.F & Pension money is , the employee has to fill 19 & 10 c Form and submit the same to PF Desk , which is then submitted to the P.F office after two months, this two months is nothing but a waiting period as the rules are that an employee should not be in employment for two months after resigning if he has to withdraw his P.F amount. After completion of two months the form is submitted to the regional provident fund Commissioner office after which the employee receives his amount along with interest within a period of 90 days.

Q20 ) Do we receive money through postal order ?

Ans Previously there was a procedure wherein member use to get P.F through Postal order but now While submitting the P.F form withdrawal form you have to mention your saving Bank account No. & the complete address of the Bank where you hold the account.

Q21 ) How would I know the amount of accumulations in my PF account ?

Ans : PF office sends an annual statement through the employer which gives details about the PF accumulations. The statement contains details like, Opening balance, amount contributed during the year, withdrawal during the year, interest earned and the closing balance in the PF account. This statement is sent by the PF department on completion of the financial year.

Q22 ) Which establishments are covered by the Act ?

Ans : Any establishment which employs 20 or more employees. Except apprentice and casual laborers, every Employee including contract labour who is in receipt of basic salary up to Rs. 6500 p.m. (Rs. 15000/- from 01.09.2014) is covered by the Act.

Q23 ) In case after registering the establishment at any point in time, the number of employees working in it becomes less than 20 then will the Act apply ?

Ans : Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20.

Q24 ) Is the Act applicable to a factory which is closed down but is employing a few employees to look after the assets of the establishment ?

Ans : No, Where the establishment is closed down and only four security men are employed for keeping a watch over the assets and properties of the establishments, the Act would not be applicable.

Q25 ) Is a trainee an employee under the Act ?

Ans : Yes, a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice’s Act then he/ she will not be considered as an employee under this Act.

Q26) Is it possible to appeal the orders of the Central Government or the Central Provident Fund Commissioner?

Ans : Yes, there is a body called as Provident Fund Appellate Tribunal where an employer can appeal.

Q27 ) Who is the authority to decide regarding the disputes if any ?

Ans : In case there is a dispute regarding the applicability of the Act or the quantum of money to be deducted etc. the authority to decide are the

i) Central Provident Fund Commissioner,

ii) any Additional Provident Fund Commissioner,

iii) any Additional Central Provident Fund Commissioner

iv) any Deputy Provident Fund Commissioner

v) any Regional Provident Fund Commissioner or

vi) any Assistant Provident Fund Commissioner

Q28 ) What in case there are workers involved as Contract labour ?

Ans : It is the responsibility of the Contractor to deduct the PF and submit a statement to the Principal Employer in the prescribed format by 7th of every month. The Company becomes the Principal Employer would be responsible for the PF deduction of the workers employed on contract basis.

Q29 ) Are the persons employed by or through a contractor covered under the Scheme ?

Ans : Persons employed by or through a contractor are included in the definition of “ employee ” under the Employee’s Provident Finds Act, 1952, and as such, they are covered under the Scheme.

Q30 ) In case the Contractor fails to deduct and submit the PF amount from the contract workers then what is to be done ?

Ans : The Company being the Principal employer is responsible for the PF to be deducted from the Contract workers as well. In case the Contractors fails to deduct and submit the PF dues then the Company has to pay the amount and can later on recover the amount from the Contractor.

Q31 ) Could the employer be punished in case the remittance of contribution by him is delayed in a Bank or post office ?

Ans : Employer cannot be punished or penalized in case there is a delay in the remittance of the contribution on account of delay in Bank or post office.

Q32 ) What happens in case there is a salary revision and a raise in the basic salary of the employee and arrears need to be paid, Do we need to deduct PF from the arrears as well ?

Ans : Arrears are considered to be emoluments earned by the employee and PF is to be deducted from such arrears.

Q33 ) Is it possible for an employee to contribute at a higher rate of interest than 12 % ?

Ans : Yes, if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12 %. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.

Q34 ) What is the interest on the PF accumulations ?

Ans : Compound interest as declared by Central Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.

(Compiled & Edited by CA Sandeep Kanoi with Inputs from EPFO website)

(Article was first Published on 30.11.2011 and republished with amendments on 15.01.2015)

More Under Finance


  1. VIKAS SHARMA says:

    i am pankaj.sh711@gmail.com
    I have transferred amount from old pf to new pf.
    Its transferred now.
    I have worked almost 4 years in last company.
    and also almost 4 years in current company. So total exp. is almost 8 years.
    But my in UAN login pf service history shows only total of 4 years of current company only.
    No record or years added of previous company during PF transferred.
    Due to this PF advance options which require more than 5 years of service are disabled in UAN online account.
    How do request for PF advance online for Construction/purchase home?
    Please tell me the solution.

  2. Rajat Majumdar says:

    I have worked in a company for 17.6 years and after withdrawing EPF amount received letter for pension scheme after 58 years (started from 3rd Mar’1995 and continued till 30th June’2013)
    And again rejoined the same company & obtained separate EPF No and will be continued for 9 years services & my PF amount is accumulating then my question is what is the way out to add my previous tenure period of services with current years of services so that I may get one pension on my overall period of services

  3. Akash says:


    I have changed 3 companies in a gap of 2-3 years, Total experience as of Feb is 8 years and 8 months. I can see my PF amount got transferred from 1 company to other company however Pension contribution was not transferred into my UAN linked Pension account (EPFO website), Please help me understand.
    1) Why my pension money was not transferred?
    2) Will it be getting transferred if I complete 10 Year of “Total experience” or I have to complete 10 years of Experience with “1 company” ?
    3) If my pension will not be getting transferred from my previous company, as I have not completed 10 years with that company, I am eligible to withdraw pension from my previous employer now?
    4) If I am planning to leave to leave this company by next 2 year can I withdraw only pension amount of my current company?
    Please advise
    Thank you

  4. T.JAGADEESAN says:

    I am Jagadeesan from Trichy.Tamilnadu.Now my age is 67 years. I had worked in a private firm, even after my retirement age 58 years worked for 9 years and EPF&EPS Deduction made 12% +12%.Last May, 2018 only, Officially relieved from the firm. Initialy while rejoining in 2007, PF.No.27 and then given PF.No.38 along with UAN, and thereafter New Number given for APRIL & may,2018. No merger formalities done.Name, fathers name, DATE OF BIRTH not updated properly by the firm.Hence multiple numbers accounts is there. How can I claim settlement with the all the three accounts merged and Pension scheme.Whether Pension not applicable?
    My UAN number.100387071734
    Please advise accordingly.
    Registered Mobile Number.90424 58331

  5. saurabh patel says:

    Sir I was working in a company without any contract & always received my salary in cash. My PF was deducted from my salary but was never credited to my PF account, after I left the company I asked the employer about my PF but they said that you took your salary in cash so you will get no PF, what should I do?

  6. Rohit says:

    I worked as a lecturer in a private college for 2.5 yrs. During this period institute never gave me PF benefits. In that case can I file complain against institute for not giving PF BENEFITS?

    1. k. ealulmalaie says:

      A person joins in an organisation as an employee
      and furnishes all the details including his
      bank account for credit of his salary online
      However, he leaves the Organisation without
      informing. His salary has been credited to his
      account after effecting contributions for EPF
      Due to correction in his Aadhaar Card details
      his name could not be linked to EPF and UAN
      details could not be generated. How to proceed further?


    hello sir
    if the employee dost not deduct pf amount at the time of joining and basic salary fix of rs.22000/- but after 3 to 4 month he wants to deduct pf from his salary amount. is it possible or not..??

    please revert ASAP

  8. Siva says:

    Hi , I was working in a company for 3.5 years and after my service. I had decided to withdraw the EPF money from my account and it was credited to me.

    Do I need to pay the Income tax for the amount withdrawn ? Please advise

  9. Ramandeep Singh says:

    Weather a Labour and construction co-operative society with 21 members falls under the EPF and from when. Weather a L&C co-operative society has to take the EPF Number. Please supply the copy of the notification. Reply back at my email id. please URGENT

  10. Gaurav Singla says:

    I worked with Company C1 for 4.7 years with PF account and now working with Company C2 for last 1 year where PF account is not maintained. (older pf account is still active)
    Can anyone please provide information on the way to withdraw the amount without any need to pay tax?

  11. sankar says:

    Monthly payable amount under EPF Administrative charges is minimum of Rs 500/- is payable. but i didn’t pay last payment and how to rectify it

Leave a Comment

Your email address will not be published. Required fields are marked *