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)
You worked for 5 months for a company. You can till go for withdrawal your PF, if and only if, you are not under same PF office scanner.
Yes you can do it under some PF rule.
your mother will be getting pension if and only if, your father made her as nominee in the pension application.
i left the company; i told my senior that i am leaving the company but i didnt give proper reginization (means to say that i write a letter and give to my boss instead of HR)that is all due to some personal problem at my home i have to leave the company on an imediate effects.
can i be able to take the PF from this company (i worked in that more than a year)
please help me out.
Is it mandatory to have PF account if we are working as a consultant and fees received under section 194J from the company.
can v make a partial withdrawal from our PF MONEY LYING WITH the pf trust of an organization.
Rv liable to get interest on the money.????
Hi,
I worked for a company for 5 months and closed the PF account.Now its time to submit the acknowledgement to PF ofice.
But now the finance team tells that PF office might not allow me to withdraw the amount instead they would ask me to transfer the amount which is again a tedious job to go back my previous organisation and moreover am in need of money.
Please help.
Regards,
Sun
MY FATHER IN LAW WORKED IN A PRIVATE LIMITED COMPANY FOR ABOUT 25 YEARS.HE HAS CAME OUT BY VRS IN THE COMPANY.HE IS ENJOYING THE PENSION NOW.UNEXPECTDLY HE DIED ON 16.01.2011. MY QUESTION IS NOW WHETHER THE PENSION WILL BE GIVEN TO MY MOTHER OR WILL IT STOP.
KINDLY REPLY.MY E-MAIL ID – [email protected]
MY FATHER IN LAW WORKED IN A PRIVATE LIMITED COMPANY FOR ABOUT 25 YEARS.HE HAS CAME OUT BY VRS IN THE COMPANY.HE IS ENJOYING THE PENSION NOW.UNEXPECTDLY HE DIED ON 16.01.2011. MY QUESTION IS NOW WHETHER THE PENSION WILL BE GIVEN TO MY MOTHER OR WILL IT STOP.
Hello sir
This Is Rizwan Here i Have one doubt if any one knows give a reply to my mail id [email protected].
My doubt is that for eg my pf is Rs.100 per month.I worked in an organisation for 2 yrs Later i resigned from that organisation then how much pf amount i will be receiving.If anyone knows do give me a reply.
With regards
S.H.Rizwan
[email protected]
Dear sir,
please guide in this matter, is epf deduction possible to HRA.
Sir,
If person is EPFS a/c holder and he had nominated his wife. First wife expired then he remarried to another woman but nomination was not changed and then after some years the person (a/c holder) dies. He left his second wife and only daughter (married) from his first wife. In this case, what would be the fate of claim ?
In Co-op. credit society, the contribution of PF on what ? Basic or on Gross Salary ?
is there any rule that if contractor is not register than how he will deduct provident fund & his staff
What is basic wages in PF ? Is this minimum wages of state or any calculated amount made by employer ? Is there any limit of minimum basic wages ?
An employee who has worked with X company for say 5 years or before, then he resigned from that organisation he has withdrawn his Employee pension fund during the same.
AFTER SUBMITTING OF FORM 19 AND 10C WHEN WILL I GET THE AMOUNT.
sir,
is it possible to transfer EPF pension fund of an employee to any specific pension fund which is establish by the undertaking organisation ,,like pension funds maintained by many development authorities, ,,,,,
I am working for a pvt. company on ctc basis.
I received my first month salary in my salary statement i came to know that employers contribution to provident fund and employees contribution provident fund is deducted from my salary it self and in the same way they have deducted esi,prof tax twice from salary when i asked my dept.head he says that this is procedure followed to calculate salary on ctc basis.
I want to know is this is right procedure adopted to calculate salary on ctc basis.
i have worked for 5 months in a company on contract basis they dedcuted my PF I resigned later .pls let me know will i get my PF
can employee withdrawal provident fund when estabish is closed
I am working with franchise company from last 1year.My company is limited company but my company not deducted any PF.Please suggest me this is applicable for me or not.currently my Basic Salary is 11500/-.If is applicable then suggest me what i do.
Hi,
Today I have receive my CTC and salary slip that shows my monthly salary, there is quite a difference in both:
1) Salary as per salary slip is: Basic + HRA + PF Employee’s Contribution say Rs.x
2) Salary as per CTC is: Basic + HRA + + PF Employee’s Contribution PF Employer’s Contribution which is also equal to Rs.X
As per me CTC should be: Basic + HRA + PF Employee’s Contribution = Rs.X + PF Employee’s Contribution
If We go with CTC monthly salary(2) it seems that PF Employer’s Contribution has been already credited to our account, which is wrong. Also Basic+HRA amount is different in Salary slip and CTC.
So Please let me know that PF Employer’s Contribution should be included in our monthly salary?
last 3 years my company deduct pf on above 6500 but thish time company deduct only on rs 8750 and my basic is rs 9900 can i deduct more amount
I have joined the Union bank on2008 december,for me is it normal pension or provident fund
Dear Sir,
I have served more that 3+ years, Can i withdraw my total pf amount in which case there employer have not deposited the pf amount more that one year.
what are exempted prvident fund schme exempted or not. if exempted than tell me which clause no. or act after retirement or 60 year employees.
Read more: https://www.taxguru.in/general-info/frequently-asked-questions-related-to-employees-provident-fund.html/comment-page-1#comment-88356#ixzz0vQETW6dj
what are exempted prvident fund schme exempted or not. if exempted than tell me which clause no. or act.
what are egliable epf contribution schmme after 58 or 60 age years. please tell me.
Income of Provident fund after retirement is exempted Or Not???????
Does an employee has to serve the one month notice period to be eligible to get the PF???
i have worked for a company for 6 yrs and rejoin after 1 yr for same company. That time co. deducted my PF but now co. not deducted my P.F. Pl. suggest me. this is applicable for me or not . currently my Basic Salary is above 6500/-
I have worked for a company for 27 months and joined another company. I wish to withdraw the PF amount from the previous company. I want to know if I get the total amount or will 30 % of the amount will be deducted as Tax as I am withdrawing the amount before 5 years. Thanks in advance.
My employer has deducted PF contribution from my salary and deposited deduction amount and their contribution through challan but failed to submit annual return i.e Individual employee wise contribution. In the mean while company under Lock out. Please give valuable suggestion to get deposited amount self & employer.
I am getting above 6500 basic and PF is not getting dedcuted.I want to go under PF scheme. It is possible that employer deduct PF & add Employer contribution, if Employee wants.And it is compulsory for employer to fulfil employees requirement.
if a employee become member of EPF for only 2 month & then left the job can he receive his 2 month deposit epf amount?
i worked for a company for 1 year and i rejoined after 4 months and i worked again for 5 months? my company people has deducted the pf amount for the rejoin period(5 months) but when i opted for pf withdrawl they are saying the pf amount deducted for 5 months will be of no guarantee. if we work for 5 months can’t we avail the PF?
employee basic + D.A. salary is above 6501/- any joint declaration between employee & employer to not deducting Pf contribution?
I have read all good things about EPF.In May 2008 my pf balance was transfered from Ahmedabad to Mumbai EPF office but till date it is not credited to my present pf account and hence withdrawal not possible.Can anybody guide which is proper authority who responds all our letters.
Answer to Q No 5 is not correct. Actully Employees 12% goes to Employees A/c No 1 & Out of Employers 12% , 3.67% will go to Employees A/c No1 & 8.33 % goes to PensionFund A/c No 10. This needs to corrected & updated.
Regarding P F on encashment of Leave(regular earned leave @ credit) is not payable, but encashment of National Festival Holidays will attract P F Contribution
sir,
I hope, the encashment of credit leave for an employee paid during the year, should be deducted pf? recently, it was told not to deduct the pf for leave encashment.
sekar
As far as i am aware, the Employers contribution of 12% goes
partly into pension (8.33%) and PF (3.67%)and the employees whole contribution of 12% goes to the PF dept.
You might want to update the same in answer to question number 5
It would be much better if someone writes as to how a member of the EPF Scheme can ever get his dues in time WITHOUT PAYING BRIBES and WITHOUT VISITING THE PF OFFICE. It is shameful that the officers from top t bottom never respond to letters in writing or to emails and only talk from unlisted numbers directing the person concerned to do this and that. Is there no Grievance-handling machinery in the CPFO? Even a Secretary to the Govt. of India at rare occasions, all Chief Commissioners of Income Tax, etc., respond to emails, but not so with the CPFC and his lower officers. The reason is quite obvious. Will at least the CBI look into this aspect?
what is the definition of casual labour, if we employ some labour during season for marketing, labour works, do we need to deduct PF. In majority of the cases, they won’t agree.
Read more: https://www.taxguru.in/general-info/frequently-asked-questions-related-to-employees-provident-fund.html#more-21933#ixzz0gRLCnd55
The questions in this post could have been given in bold font, to facilitate readability! It was quite a task reading it!
Does any statement of 8.33% contribution of Pension by employer also received like in case of PF
Kindly let me what will happen to the person placed in company (where PF appliocable) on daily wages. like gardner, daily wage labour. if it necessary to deduct pf from their wage payment.
if yes, whats the procedure? Thanks
What is the definition of “basic pay”? In most of the establishments, the basic pay and the DA constitute the components of minimum wages.
Such being the case, can we exclude DA for determining the contribution to the EPF by the employer/employee?
why , the brother of any member of a providiend fund canot becomes his(members)nominee?
LET ME KNOW THAT EPF SCHEME & ACT ARE ALSO APPLICABLE TO NATIONALIZED BANK EMPLOYEES?
IF NOT THEN WHICH ACT APPLY TO BANK EMPLOYEE AND WHETHER IT DIFFER FROM BANK TO BANK?