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,One of our sub contractor requested us to cover all his worker under company establishment code.after two months with an intimation covered by his own code.Again asked us to continue by us i.e covered under company code .Pl advise.
hi,
i have resigned from an MNC and have a total experience of 4 years and 9 months. Am planning to withdraw my PF. Will this be taxable as i have not completed 5 years of employment.
Now what i should do to get my PF amount
if rule of intrest of epf is every year 1 april they add the compound int but what about those accounts which r not apdated since 31/3/10
We are working in central govt. department as a computer operators & Watermen on daily wages from 06.03.1997 to till date. We had received salary Rs. 292/- per day from the department till June, 2011 but after June, 2011, we receiving salary from the department @ Rs. 164/- per day. There was no contract system in the department till 09.03.2012. The Department has opened a bid for contract for hiring of Computer Operators & Watermen. We had filed writ petition before Hon’ble CAT in the month of November, 2011 and filed representation against the contract bid. The same was rejected by the Department on 09.03.2012 and give contract on the same date.
Please tell / Advise us, can the department engaged us through contract or not? If the contract system followed by us, then please give payment rates for us.
( Pawan Kumar Rawal )
A PERSON WHO RETIRED IN JULY2011, CAN REJOIN THE COMPANY ?
sir plz reply asap!
16. How can an employee get a loan or advance from pf?
18. Will pf be available for part time employee?
20. If an employee do not wish to be a part of pf & wishes to deposit,do he need to fill a form to transfer the amount accrued to his family pension fund when he leaves the organisation?
21. Is there a separate a/c manual for family pension fund?
22. What is a cooling period?
23. Why does pf form a part of employer ctc?
24. Does an employee need to inform or fill a fresh information in case of change or addition of his nominee?
25. If there is an interest transfer, is the continuity of the pf impacted?
26. On withdrawal of my pf amount,is it taxable?
What is the voluntary rate of contribution?
Where does pf gets deposited?
What is the procedure of inclusion in an exempted & excluded trust?
How does one become a member of pf?
How often can a member get the amount of pf accrued & the statement?
6. Can an employee make additional contribution under pf act?
What is Form – 9 (Revised) as per PF act.
My company is a manpower & housekeeping service provide company and our company employees are below Rs.6500/- (Basic + DA) but recently we had a new contract. That employees having Basic + DA is more than Rs.6500/- but we wrongly give PF numbers in Form-2, Form-9, and also we give monthly return to PF office. Whether it is correct or not ?
please reply at the earliest.
Thanking You.
Hi
i was worked in a pvt company for 20months, now i leave that job with out serving 1 month of notice period, so can i apply for pf.
sir,
I had been working for NIRMA LTD.(HEALTHCARE DIV) FROM 1/1/2009 to 17/11/2010. Please provide me the PF account no of mine if possible…
sir,If PF is deducted by the employer but not deposited by him so whats the liabilty and penalty that can be imposed on him.
Dear sir, in 2005 i left flex industries noida and join bhushan steel. i have not taken my provident fund. is my provident fund genrating intrest on that account or not.
how much does PF amount take to credit in our A/C after approval or forward to the bank
dear sir,
i have 28 employee out of which 12 are getting 8000/- pm i want to know that these 12 employee are covered under esic & pf provisions
My Employer, Canan Technologies P. Ltd., deducted Rsl281/- per month from my salary since 2008 July till I left service on 31 December 2011. After leaving the service it came to know that my EMPLOYER has never deposited anything other than the bribes paid to certain staff in the PF office at Bommasandra, Bangalore, On checking the Employer Code, it is also noted that a fake address is given, which is unknown even to the senior most employee of the company . I have spent more than Rs.2000/- to get the information from Bommasandra Office, in addition the loss of about Rs.18,000/- deducted by employer as Provident Fund. In spite of several representations by several employees, there is not even a nod of head by the Assistant Commissioner of Bommasandra. What is the remedy ? Just on checking the No. PY/BOM/34355/ … it would be evident to any person. But the PF Commissioner is laughing on such enquiry. So, my advice to every employee, you should collect the proof of remittance by every month, especially from Bommasandra (Bangalore) Office of Provident Fund.
in which conditions the company has deducted the epf on the amount rs.7500 & which type of company should deducted
Dear Sir / Medam,
I wont to know herewith following subject as per company rule ;
1) Company can deduct in basic salary of employee? Once PF deducted on high basic then it is possible to reduce basic ?
2) is TDS applicable on allounces like (HRA, D.A., Other, etc)
Please help me & give on [email protected]
Thanks,
Keyur Parikh
MY PPF CONTRIBUTION IS RS 5100/- PER MONTH AND MY EMPLOYER IS DEDUCTING THE AMOUNT
I DONT KNOW HOW MUCH PERCENTAGE ?. I WOULD LIKE TO KNOW THAT MY PF AMOUNT IS DEDUCTED AND WILL BE SENT TO PF OFFICE OR JUST MY EMPLOYER ARE DEDUCTING FOR PERSONAL USE.
AFTER COMPLETING 3 YEARS OF SERVICE I DID NOT GOT MY PF ACCOUNT NUMBER FROM MY OFFICE
PLEASE HELP ME TO GET THE DETAILS @ [email protected]
I have recently jined a new company & having a PF account but when i got the salary statements it shows that the employee & the employer contrbuiton will be duducted by my salary only. Is it any rule in PF that it both employee & employer contribution can be deducted from the employee salary. Please someone guide ????
SIR
I WAS A CENTRAL GOVT EMPLOYEE AND WORKING UNDER AUTONOMOUS BODY FOR 3 AND HALF YEAR DURING THAT PERIOD I WAS HAVING NPS, AND THAT TIME OUR ORGANIZATION WAS NOT REGISTERED UNDER CPAO, NOW THEY HAVE REGISTERED WITH CPAO AFTER 1 YEAR AFTER I RESIGN FROM MY OFFICE. THEY HAVE NOT SENT MY CONTRIBUTION + EMPLOYER CONTRIBUTION TO THE CPAO. NOW I WANT MY NPS FUND BACK. SO HOW CAN I GET MY NPS REFUND AND WHETHER I WILL BE ELGIBLE FOR BOTH EMPLOYER & EMPLOYEE CONTRIBUTION FOR REFUND. AND WHAT IS THE PROCEDURE FOR REFUND OF NPS.
SIR
I WAS A CENTRAL GOVT EMPLOYEE AND WORKING UNDER AUTONOMOUS BODY FOR 3 AND HALF YEAR DURING THAT PERIOD I WAS HAVING NPS, AND THAT TIME OUR ORGANIZATION WAS NOT REGISTERED UNDER CPAO, NOW THEY HAVE REGISTERED WITH CPAO AFTER 1 YEAR AFTER I RESIGN FROM MY OFFICE. THEY HAVE NOT SENT MY CONTRIBUTION + EMPLOYER CONTRIBUTION TO THE CPAO. NOW I WANT MY NPS FUND BACK. SO HOW CAN I GET MY NPS REFUND AND WHETHER I WILL BE ELGIBLE FOR BOTH EMPLOYER & EMPLOYEE CONTRIBUTION FOR REFUND. AND WHAT IS THE PROCEDURE FOR REFUND OF NPS.
SIR
I WAS A CENTRAL GOVT EMPLOYEE AND WORKING UNDER AUTONOMOUS BODY FOR 3 AND HALF YEAR DURING THAT PERIOD I WAS HAVING NPS, AND THAT TIME OUR ORGANIZATION WAS NOT REGISTERED UNDER CPAO, NOW THEY HAVE REGISTERED WITH CPAO AFTER 1 YEAR AFTER I RESIGN FROM MY OFFICE. THEY HAVE NOT SENT MY CONTRIBUTION + EMPLOYER CONTRIBUTION TO THE CPAO. NOW I WANT MY NPS FUND BACK. SO HOW CAN I GET MY NPS REFUND AND WHETHER I WILL BE ELGIBLE FOR BOTH EMPLOYER & EMPLOYEE CONTRIBUTION FOR REFUND. AND WHAT IS THE PROCEDURE FOR REFUND OF NPS.
After leaving of company if we withdraw EPF before three years then will we get interest on EPF?
After leaving of company if we withdraw EPF before three years then will we get interest on EPF?
After leaving of company if we withdraw EPF before three years then will we get interest on EPF?
if an employee receives a certain amount as arrears of salary in the light of pay revision and a major portion of such arrears are credited to the employees p,f account ,whether the whole or the part of arrears is exempted?
if i have 25 emp and all they geting more ten Rs 9000/- per monts as cash by cash vouchar, then is it compulsory to me as an employer to enroll for PF.
MY PPF CONTRIBUTION IS RS 3500/- PER MONTH AND MY EMPLOYER IS ALSO CONTRIBUTING THE SAME AMOUNT TO MY PPF ACCOUNT. I WOULD LIKE TO KNOW THE FOLLOWING.
1.FOR EPF PENSION SCHEME WHAT IS THE CONTRIBUTION TO BE MADE BY THE EMPLOYER EVERY MONTH AND HOW EPF PENSION IS CALCULATED WHEN I SUPERANNUATED AT THE AGE OF 58. I AM AGED 44 YEARS AND EPF CONTRIBUTION IS DEDUCTED BY THE EMPLOYER FROM 1995 ONWARDS. WHAT WILL BE THE STATUS OF THE PRINCIPLE AMOUNT ACQUIRED WHEN I REACHED 58 YEARS OLD. WHAT WILL BE THE MAXIMUM ELIGIBLE PENSION AMOUNT WHEN I RETIRED AT THE AGE OF 58 AND WHAT WILL BE THE FAITH OF ACCUMULATED AMOUNT DEDUCED EVERY MONTH FROM MY SALARY, WHETHER IT WILL GO TO GOVT. OR IT WILL BE REFUNDED TO ME AFTER THE DEATH OF ME AND MY WIFE TO THE SUCCESSORS.
is the money deducted on behalf of ESI is given back at the end of service?
would appreciate your reply to my email [email protected]
Hi,
I want to know if i withdraw PF after 6 years of continuous services, is it taxable under the income tax act?
i want to withdraw my money from pf account which is not oparating for the last 8 years. as i was resigned from my earlier company. Now can i get back my amount by regular procesure ? plz. help.
i have 8 nos of labours in my transport business. Is it EPF registration required for my 8 drivers?
Which form to be filed on employee leaving service and new joining service and How to maintain employee epf code
Hi.
I joined the Pvt Ltd Company on 3rd Nov,2008 and i left on 23rd Nov, 2009, without any prior notice to the company………..
Now, i want to apply for my PF……
So can I apply for the same or not…….
Is there any time limits after leaving the organisation we hav to apply for PF?
Do PF collapsed….
Hi,
I left my last organisation on 6th Aug 2011, and at the same time i have applied for the PF withdrawal and given the documents to the local HR, but till date i haven’t received my PF amount, now the HR team is saying that it will take few more months for the PF amount, can i ask for any compensation amount from my company for the delay in process.
A person settled his claim for a certain period then rejoined in the same establishment
what is the space ( period ) to allot new number how much period has to wait or there is space to wait immediately joined in the following month itself ,please explain
I am asking you, that after death of employees his father ( Ist nominies) get pension as routine way suddenly his father died than (2nd nominie) his mother get pention or not. Kindly confirm and what is the rules regarding this metter.
we have 5 employee its possible to cover epf for my employee?
what if the employer has paid his part of provident fund to the labour contractor and thge labour contractor maliciously fails to pay the provident fund to the EPF, should the employer continue to do business with the contractor neglecting his mistake and if he continues is their any punishment to the employer for abeting the contractors act. please guide…..
Sir ,If
I work in a company and suddenly quit it because of companies misbehaviour or not feeling uncomfortable and the organisation refuses to tell me my pf account number or relief letter. How can I get access of that pf account.
i am 65 yearls old i service a firm / p.f 12% cut my salary
Is the EPF registration mandotory even if the employees strength is less than 20 nos.
If any contract worker has worked for one day and contractor is under pf rule. Should contrcator deduct PF from salary of contract labor?
If any contract worker has worked for ond day and contractor is under pf rule. Should contrcator deduct PF from salary of contract labor?
IS THERE ANY ORDER OF SUPREME COURT REGARDING PF AND GPF CONTRIBUTION OF CONTRACT STAFF UNDER STATE GOVERNMENT .
Please advise when we will be able to withdraw the money from Pension Fund? Is it only after 60 years ( or ) when changing the employer.