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)
If employees want to withdraw their PF amount from previous company & open a new account of PF in their current working company. There is any affect to previous company regarding employees PF withdrawal?
Really Thankful for all the answers!!
I have gone through all questions and myself clarify lot of question on PF Scheme. I am very thank full to you!!!!
Consider am working with X company…and i resigned from there and joined in Y company….Is it possible to withdraw PF without signing the previous employer
Sir, I am a central govt. employee working in Income Tax. I am not eligible for GPF. My monthly deduction (10%) for CPF a/c is done from my salary. In case of CPF equal amount (10%) is deposited to my CPF a/c by the government also. Is this 10% contribution by government be added for calculate my gross income because that amount also taxable. If, yes or no, then under which rule? Please reply me. Thanking you.
Sir,
I am a Central Govt employee working in a research institute under Min of Agriculture. I am not eligible for GPF, but monthly deduction for Contributory PF is done from my salary. In case of CPF equal amount (10%) is deposited to my CPF account by the employer also. Is this 10% contribution by the Govt be added to calculate my Gross income, i.e. is that amount also taxable? If, yes, then under which rule? please reply me. Thanking you,
Siddhartha Misra
CSWRI, Avikanagar, Rajasthan-304501
Can a member of PF discontinue PF while in service?
Do we have to pay Income Tax on PF amount claimed.
I was employed in a public limited company where PF was being deposited in a private trust managed by the company. W.e.f. 1st Jan ‘2011 PF contributions have been deposited with Regional Provident Fund Commission. I left the company in May ’11. I have received PF from trust but company has not informed my PF No. with RPFC. Can I withdraw PF accumulations from RPFC.
IF retired person aged 58 is employed in an Ltd co.
His basic salary is Rs.3000.00. Wheather the duduction of PF is compulsory.
Enmployee do not want the PF.
I want information related to procedure of discontinue family pension scheme.
My date of joining last job was dated June-1972 and left the service on dated 1994 that time i was withdraw my family pension Rs.4695/- in Feb-1996, now i want to rejoing in this family pension scheme with paying my due amount with interest. So it is possible as per P.F.Act. Today my age is 57 year & 8 Month. Please mail me with proper details for above possibility.
Please guide me i want this information. Please do needful.
Please mail me as early as possible on my above mail id.
Thank & regards Rajesh Mahant
hi,
currently i am working for a company 2 yrs,
if i want to withdrawn my PF,Is it possible to withdrawn with out resign the company?????
9730174064([email protected])
hi,
currently i am working for a company 2 yrs,
if i want to withdrawn my PF,Is it possible to withdrawn with out resign the company?????
my p.f cutiing is Rs .780 per month from my monthly salary from jan 2008. Then what will be my E.E amt & E.R amt upto 31st march 2010. Plz send me the ans on my cell 8805027514.
I have submitted my PF settlement form in my previous office by Nov 2010. When ever i check my pf status online your form has been submitted on 094\2010 and it is in under process. Today when i checked it, it shows as Form 19 has been rejected. And your Form 10C is under process. Now what i should do to get my PF amount as i am waiting for that amount since 6 months.
Please send the details to my e-mail address which i mentioned below.
[email protected]
I worked on on limited con nearly 7.5 year and i widraw my provident fund but i did not withdraw my penson fund, i work there since 1993 to 2003. since there i never contribute in provident fund there is nine year gap between my penson fund contribution. i got certificate for my penson fund contribution. i join another co. after 8 year should i continue my accout is it helful for me
Dear Sir
If a employee does not wants to deduct EPF in his salary, then the employer can pay his salary without deduct EPF?
If the employee give the declaration i.e. to say I don’t want to ded. EPF is it sufficient?. If it is sufficient, as per which section it is sufficient?.
Any one can give the reply.
If the pf account is not operative than pf account holder can get the interest for how much time.
I had left my previous job in may 2011 And My Ex-employer has not provided me PF no. yet.how could i get my PF No. number?? i m confused weather to take legal action or not,Is there any way to access my PF no. from my employer or any other way ??
Please suggest me.
Thank you
my father has taken voluntary retirement 1 year before actual retirement will he be getting pf .he worked as rtc driver
Sir,
I have been working with a company for 10+ years which has never paid me or other 20+ employees any PF. All employees have salaries ranging from 17K+ to 40K+ with basic in excess of 7000+.
The company also does not pay its I. Tax due to STPI benefits, although TDS is deducted.
What action can be taken against them and whom to contact.
Please Suggest.
HI,
My aunt an ex bank employee had subcribed for post retirement pension scheme… and in lieu had deposited some amount upfront with the bank…
She expired after some months into the scheme .. Just want to know can I withdraw the amount deposited …. and how?
Dear Sir / Mam,
my last day in offfce is 23th sep 2011 & after 60days of waiting period
submit my pf withdrawal form in pf office bandra on 29th nov 11.
so hopefully when i get pf amount credited in my bank a/c ?
Dear Sir,
I was working in a Pvt Ltd company from the year of 2001 To 2005 ,company used to deduct my PF amount from my salary in this year, at year 2005 i resigned company, then i rejoined this same company at year 2011, so i need your help , how can i withdraw my PF amount from the year of 2001 to 2005 , pls help,
Yes bansilal, PF accumulated amount cannot be credited in a joint a/c. It is necessary that an employee should have a separate a/c
Yes Bansilal, PF accumulated amount cannot be credited in a joint account…………..
What is the Maximum benefits of EDLI Scheme as per last ammentment?
Sir,
I was employeed in a Pvt.Ltd. company of Rajkot, posted to work at Baroda in their Branch Office as a Branch Incharge on Probation Period, at the Consolidated Salary Rs:12,000/- per month.
As per my knowledge, Company has to deduct my PF contribution on complition of 2 months (60)days, but, neither they have deducted nor any intimation in the regard, has been given to me.
Is this a write process or should I draw attention of my Employer to deduct my contribution.
Also, please inform me, if they still fails for this, what legal proceedure is likely to be taken by PF authority.
Thanking you,
Yours truley,
(S.D.Pattani).
what will happen that an employer not deposited pf amount on time . have any law to take action about such type of fraud.
Is there any provision to withdraw pension fund after completing 11 years of continuous service under Employee Pension Scheme 1995.
Sir: I worked for an organization for over 3 years in Hyderabad. PF was deducted for me in this organization. Then I joined another organization in Hyderabad itself. My PF no was transferred from the first orgn to this second orgn. But, due to some personal reasons, I had to leave the second organization within 6 months of my joining. Later, when I approached the PF office, they said that since I have not completed 6 months, I cannot withdraw PF. Now, the whole amount (including what was contributed in the first orgn and the second orgn) got stuck and it has been more than 7 years. I have not been able to get my amount. How can I withdraw my PF amount ? Pl advise.
Thanks.
Ravi
Dear Sir,
I am Working in Ex-Servicemen Contributory Health Scheme on contract basis since yr 2004, Which is run by Min of Defence, Govt of India. Since 2004 there ECHS Organisation is not deducting PF amount from our salary. We are contract employees and our contract is renewable after 12 months. Now the ECHS Org has started deducting our TDS but still PF is not yet started, which is very much important for us to be financially secure.
Hi,I am working private hospital,since last 2 years hospital was closed.but my EPF withdrawal can not be credited in my account.I am submitted form in office 2 times but they are rejected my form. SO please I will request to you please help me.My EPF office in Nagpur and my EPF No.is- MH/63710/197 and my mobile no is- 9545400990.Thanks
Is it mandatory for employer to contibute to P.F. ? If so , what is the minimum amount should the employer contribute to the employees Pf
If an employee retires from the services of the corporation and wants to maintain his/her PF account with the employer self managed trust.Is employer can retain the PF amount of the Employee on superannuation and if yes for how long??????
Please let me know after taking into consideration of Income tax provisions
Hi
For the past 5 yrs i am working in a company where i am contributing the pf fund also. I am planing to quit the company now. After 2 yrs i am planing to rejoin the same company or different company. I dont want to withdrawn or transfer my employee pension fund. After rejoining the same or different company can i use the same pf account? or can i transfer my the pf amount to new pf account? how the continuous service will be calculated?
Anyone pls give me suggestion..
For the past 5 yrs i am working in a company where i am contributing the pf fund also. I am planing to quit the company now. After 2 yrs i am planing to rejoin the same company or different company. I dont want to withdrawn or transfer my employee pension fund. After rejoining the same or different company can i use the same pf account? or can i transfer my the pf amount to new pf account? how the continuous service will be calculated?
Is it possible to transfer pension fund after withdrowal of provident fund ?
Dear Sir / Mam,
What if an employee doesent withdrows his PF after resigning from the services within 3 years
Hi,
i was an employee but now i am an employer. Can i continue to to the same PF account. Would i be still eligible for PF.
If a company is paying Special Allowance to an employee, is it liable to deduct Provident Fund on such allowance? The company now deducting PF only on Basic salary
What action the PF deptt can take if the Establishment has not deposited the employees as well as employers contribution during the last 3-4 financial years.
Also pls advise what remedies an employee has – in getting the contributions and interest be credited to his/her account
By mistake my employer had given my previous PF a/c no hence it is rejected by PF office. Advice how to re apply and if can file a case against my employer demanding interest for the delay
pls say the calculation for 3.67 provident fund and 8.33 pension
Is it true that PF accumulations (withdrawal) cannot be credited to a joint account in the name of the employee and his spouse ??
Hi,
My current basic salry is above Rs. 6501. I didn’t opt for PF at the time of joining my current employer (didn’t have any PF account earlier as well). My basic salary was above Rs. 6501 at the time of joining as well.
However i want to enroll for PF now, but my employer says that it can’t be done. They say that only at the time of joining the organization i can have option of joining / not joining PF. A person can not enroll for PF once he has opted for not joining PF.
Please comment if my employer is right in denying me to join PF.
please let me know if directors of company are also to be counted during determining the employee strength.
i had worked in MNC for more than one year.but after accident in my home i got fractured in my leg and i got surgery and was on bed for 7 months .the previous company terminated me and they deducted my PF every month without PF no.can i get my PF amount. please help m i am very need full
You will get your amount.
Use PF calculator tool from net. You need to do Google searching for get a PF calculator tool.