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)
sir, my salary is 15001 per month,my employer not informed me regarding provident fund salary limitation and its benefits while joining,i wish to get PF BENEFITS,how i can go further??
Dear Sir,
Greetings…!
We have 15 employees in our firm but we want start PF in our firm what we do..? Please advise.
Thank You,
Vikrant
Can anyone tell that pf credit into the account in 2 part?
Sir,
We are a 50-year old company engaged in manufacturing, registered under Excise & EPF.
We closed operations and cleared accounts of all our employees due to labour issues 2 years back, but continued trading in spares, servicing & repairing at our works on contractual basis. We are regularly filing our sales tax & excise return. We gave a letter of temporary closure to EPF.
We intend to restart operations under the same name & style as earlier. Now, we are employing 8 workers and we do not intend to register with PF. The ceiling of PF is Rs.15,000/-. Our new employees have a starting salary which is higher than the EPF prescribed limit of Rs.15,000/- and have voluntarily opted not to be part of EPF.
Do we still have to inform EPF dept or any other formality?
sir,
i have worked at an MNC from 17th July 2006 to 8th February 2009. I was covered by Contributory PF in that company. After that I have joined at govt concern having General Provident Fund from Feb 2010 onward. From Feb 2009 to Feb 2010 I was trainee in that Govt concern. Now my question ,
1. can i withdraw entire pf amount right now or I have to wait till 60 yrs of age(though i am employed presently yet there is no contribution in my pf a/c from Feb 2009).
2. can I get interest in this period?
3. What is the exact procedure to follow?
awaiting your early response please.
I am a retired employee of a private co. in chennai, where I joined on 1st Sept.1992 and served till Nov.2005. Though the PF settlements done, pension was not, as I understand that pension form (10D was lost by employer).Factory shifted to outside Chennai and no response from employer. I sent a legal notice and finally now the papers are with PF office for settlement. Will I get arrears of pension for the past periods and interest thereon
Hi,
I have resigned from my previous organisation and I am currently working with another company.
Both my previous PF member ID and my current company member ID is registered/linked under same UAN. Will i be able to withdraw my PF amount of my previous organisation in this case.
Please guide me with the possibilities.
Sir
I worked as a teacher in private school at Jammu for
about 12 years, The employers started deducting
CPF after three years of service. School did not
provide me the appointment letter, salary slips
schedules of CPF deposited in the fund organisation till date i have resigned as a teacher due to personal reasons. Now I submitted the
cpf withdrawal form in the school, but the employer is not signing the form on one pretext
or the other.. As such you are requested to guide me what steps are to be taken
I HAVE JOINED AN ORGANISATION ON MY SUPERANNUATION FROM PREVIOUS EMPLOYMENT AFTER 60, ON CONTRACT. APPOINTMENT LETTER SAYS, I WILL BE PAID RS.60000/- P.M. AND NO OTHER PECUINARY BENEFIT SHALL BE THERE. EMPLOYER IS DEDUCTING RS.1800 + 1800 = RS.3600 P.M. TOWARDS EPF. IS IS CORRECT ON HIS PART TO DO SO.(12 % ON MINIMUM OF RS.15000/-)
I have worked in a company for 4 months .In my payslip my provident fund & ESI number is not there.now I resigned my job how can I get my pf & ESI.number of cash back my deducted amount for 4 months
Sir,
After resignation of my job the company provide me a certificate. On this certificate clearly mention that i have joined sep the company on sep-2012 but my pf account data show that the pf amount submit from mar-2014 to till end. I dont understand what is happen? So what should i do? If employer doing some thing wrong then what are the penalties approved by govt??
Pls help me sir.
Thanking you.
I have some doubts which i have mentioned in points:-
1. If the the person was in probation period is he eligible for PF deduction by employer.
2. It is compulsory for employee to contribution for PF from his hand.
3. It is compulsory to deduct PF while making salary payment by employer to employee
TWO YEARS BACK I TRANSFERRED MY PF FROM OLD COMPANY TO NEW COMPANY THROUGH ONLINE, SO IT GOT TRANSFERRED BUT WHEN I CHECK IN MY PASSBOOK, I AM ABLE TO SEE ONLY EMPLOYEE AND EMPLOYER CONTRIBUTION BUT NOT PENSION CONTRIBUTION OF PREVIOUS COMPANY. DO YOU THINK, WHILE TRANSFERRING THE PF AMOUNT WILL PENSION CONTRIBUTION ALSO TRANSFERRED OR NOT?? IF YES WHY IT’S NOT SHOWING IN MY PASSBOOK OR WILL IT BE HIDDEN ?
I NEED EPF COMMISINOR ADDRESS OF CHENNAI FOR TRANSFER PROVIDENT FUND TO TELANGANA,
as i came to do my masters i don’t have any account in India.
so can i get the PF money into my dad’s account?
We all know that 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. But unfortunately we have deposited wrong percentage/proportion of the Employees contribution, i.e. 8.33% in PF ( A/C 01 )and 3.67% in Pension Accounts ( A/C 10) Now the department ask for payment of the shortfall amount at Pension A/C though that amount is already over paid at PF A/C.What should be done in this regards.
what to do when the company doesn’t pays our PF for last one year.
how can i transfer or withdraw my pf amount
the company has stopped its operation since last 6 months
they didn’t provide salary also…please suggest what to do
what to do when the company doesn’t pays our PF for last one year.
how can i transfer or withdraw my pf amount
If a company is having one factory having less than 20 employees but opened 2nd unit in another area and now after merging employees of 2nd unit..total no of employees become > 20. now discuss for checking pf applicability 20 employees is counted for co as a whole or individually. If 20 employees is checked factory wise the pf is paid factory wise or co as a whole.
i am a railway employee and i have a huge amount of Rs.2,00000/- raised as debit against me.
i have Rs.2,54,312/- balance in my provident fund and i had last withdrawn from my PF in Jan this year.
can i write the railway administration to please deduct the said debit amount directly from my PF????
WHAT ARE THE RULES AND PROCEDURE FOR THE SAME
Dear Sir
After 7 years and 11 months service, on 30-11-2014, I retired from Private Company in which the retirement age was 60 years of age.
My UAN Pass Book shows accumulated amount till 31-03-2015 under Employer/ Employee contributions an amount which includes interest up to 31-03-2015. Additionally there is amount under Pension Contribution made @ Rs 541 per moths till I completed 58 years of age.
Since 30-11-2014, I am not employed in any service with EPS and EPF contribution. In other words, my PF account is inoperative from December 2014 to which the last contributions were from salary of November 2014.
Here are my questions? Can somebody give answers quoting relevant notifications and references?
1. Will I get interest for 36 months for these funds, if I plan to withdraw it on 30-11-2017 i.e. 36 months after my retirement?
2. Can I withdraw the entire Pension Contribution Fund which was made only 72 moths till I became 58 and my entire service period was only 7 years & 11 months. Will I get some interest for that also?
3. What is tax implication if I withdraw the amount in this F/y 2016-17.
4. How to qualify my retirement? Can it be termed as ‘superannuation? What is difference between “retirement “and superannuation retirement?
5. If at all there is interest , I may decide to withdraw the full amount . In that case which are the best investment option for me?
I just want to my pf money ..I do the work in trident group for six month.and I also want my pf money.so can u tell me how can I got my pf money
Is EPF mandatory for vehicle contractor (hiring vehicle contractor)
If I want to remove my pf cash will I get the cash from both the side or will I get only one side cash while withdrawing????
How much PF we can withdraw after resignation of my job as per latest budget? Please advise
Hello Sir,
Currently i am continuing the exiting PF account with the new company which i joined 3 months back , but now i need to withdraw the existing company’s PF where i worked for 3 years, so if i withdraw the amount will the account gets closed or will be able to continue with the same PF# or need to reopen a new PF account.. Please suggest what best can be done.
Sir employee drawing pay at the time of join is greater than 15000.in that case also employer should provide matching contribution?
I KNOW THAT IN CASE OF CONTRACTOR NOT LIABLE FOR PF BUT OUR FIRM IS REGISTERED UNDER PF ACT AND CONTRACTOR WORKERS ARE WORKING WITH US THEN WHAT IS TO BE DONE? PLS.SUGGEST ME…
I am drawing consolidate Salary of 40000, did I am eligible for PF deduction, whether any circular which say that above 15000 salary the PF should not be deducted from employee
Kindly Guide
Hello Sir,
I need your help urgently!!!!
I am the X Employer holding X Private Limited Company . Now we need to close the EPFO Account of company. Can you please explain me in detail process of PF account clouser.
We already submitted the letter to PF office but there is no reply from the concern person.
Thanks in Advamce
I have changed job and have 3 years exp. in my old company i have both EPS and EPF as my basic was less. Now it is more than 15000 and i want to withdraw pension and transfer PF.
is it possible?
Can I get info on this I come to know that the eligibility for getting pension benefit has been relaxed and the employee can apply for pension if he cross age of 50 and is unemployed.
SIR,
AS EMPLOYER, I WANT TO PAY / DEPOSIT PF & PENSION AT A TIME FOR LAST 6 MONTHS (JULY TO DECEMBER 15) DURING THIS MONTH.
IS IT POSSIBLE? IS THERE ANY PENALTY OR VIOLATION OF LAW SOMETHING?
THANKS
My firm has 0 contributing members. How do I file return?
I have withdraw my pf money with signature of bank manager after that I have seen that company not deposit his employer pf money form 10 month. How I can recover again that money plz advise me
Sir,
My company has closed 31st August, I have already resign 31st August but company provide me release letter on 11th October there after they not sign at employer place on PF Form because they not deposit there contribution employer part. I submit 10 & 19c form with attested of bank manager on 4th December, with a letter to PF office,
Can I get my PF money at this process and how many day will take it
Hi,
I am planning to withdraw my PF amount as i was unemployed for more than 2 months.
Query: If I raise a PF withdraw request then will I get my all 100% PF amount ??? OR only 75% of amount now and later after 58 years of age rest of 25%.
I seen below from News in July 2015:
The labour ministry is all set to cap premature provident fund withdrawal at 75% of total deposits in case an Employees Provident Fund Organisation (EPFO) subscriber goes without a job for two months. The rest 25% would be paid to the subscriber at the age of 58 years.
Is the above rule Implemented???
Kindly share your info/inputs.
can you tell me whether an employee get the PF when he leaves the company without any intimation? if yes then how, because i worked with one Organisation for 1.5 year and i did so, therefore please help me in this.
Is there any provision that if any person does not want pension and want to get full refund of PF of both shares as well the share going towards pension scheam. Secondly please let me know if any person resigns before completion of 10 years, does he/she gets full PF refund of both shares and as well pension scheam amount or any share is deducted by PF department and if any part is deducted, what is the percentage.Please send me an email.
Dear Sir/madam,
if a company generate epf challan online and deposit the amount in bank then after sometime came to know that epf is deposit in wrong account(that means other establishment)what will be the solution.
Does the PF of Employee Share and Employer Share is included in over all CTC.
If it so then why should they call it as Employer Share?
I worked in a company from March 2014 to September 2014 (7 months) and join new company from October 2014 to July 2015. Now I am self employed. My question is can I withdraw the pf amount only from 2nd company? Pls. advise me. Sir, my 1st company is closed and I dont know my epf account no. Therefore I want to withdraw my 2nd company’s epf amount. Can I do it?
Dear Sir,
In case the basic+ DA+ retaining allowance is ₹ 20000. Should the employer’s contribution be on 20000 or on 15000. Kindly Reply.
Thanks to Dr
Let me know if I join an organisation which has an exception for next 6 months PF however I want to continue my existing PF account.
If I can, what all I need to do. If they continue with PF contribution after a gap of 6 months can my exisiting PF account can be operated.
what if my basic salary is Rs. 16000 and i wish to not to deduct PF from my salary.
Will my employer deposit PF of my share?
Is it right if PF is deducted twice from our basic pay. One part as our contribution and the other part as the employers contribution. If yes then how is that right. Please explain
Hi, My mother worked for a company and the company closed on 23/8/2000, she got a scheme certificate with age to be attained (58 years) on 27/8/2007. she did not apply for any reduced pension and now today she has applied for super annunation psnsion after the age of 62 years. Will she be getting the pension as well as the reduced pension accrued for all the 15 years ie from 2000 to 2015, since she has not claimed for reduced pension all these years. And she has not continued in service since 23/8/2000 or worked for any company or employer. Kindly guide us how to claim for the reduced pension accrued amount for all these years, since we have only claimed for super annunation today.
Thanking you,
Sir, i want to know what is the Liability of Employer if Employee not deduct Provident Fund From their Salary. Is Employer responsible for deposit employer contribution if Employee’s not want to become a member of Provident Fund and whose Salary is Less Than 15000 per month.
if pf is Approved by Employer how much take time to credit