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)
Dear sir pls tell me what maximum % of my basic salary i can deposit in epf a/c
is there any option of not withdrawing the epf amount after retirement? if yes, for how long/ during this period, whether the amount will get interest?
I am working from 4 months in a s/w company in bangalore.
now due to some reason I want to withdraw my PF amount.
How it possible and How many time it takes ?
I want to withdwar my provided fund from my last company. Can I give my account which was my salary account with that company but in this account my wife is a joint account holder. Is a joint account acceptable. the company HR told it might be a problem as it is a joint account?
Sir,
I am working in BSNL through contract agency for a period of one year. After one year i closed my epf account and get it settled from epf organisation. After closing my epf account there is some arrears have to be paid to me by BSNL through contract agency. Whether it is mandatory to deduct epf contribution from arrears payment where there is no epf account to deposit ?
I will be very much thankful if i get the information to my mail id please.
Dhanraj
Sir,
anybocy can tell me that my father (age 65 years) expired one month back and he is the pensioner of provident fund pension scheme. i would like to know the proceedure about how the pension of my late father can be tranfered (or) make my mother eligibel for the persion scheme with details of required forms and certificates to be submitted to the p.f department.
I will be very much thankful if i get the information to my mail id please,
-prabhakar
Hi, my name is Arnab Saha.
i have deducted my PF 5 months back but still not able to trace the status.. request you to please provide my PF account status.. PF number is WB/CA/44451/215
my mail id is arnabsaha_74@yahoo.co.in
I m working in my comp from last 4 months (1st 3 months was prohibition period).. but they did’nt provide me any PF no. nor any PF amount.& not providing me confirmation letter. they are teling that during prohibition period no pf amount is given…..& no company gives confirmation letter…..
my basic salary is 12,300/m. please suggest me, is that so……?
NIDHI
Sir,
Please let me know that from which year the deduction of P.F has been increased from 10% to 12% ; and from which year the D.A has been added with Basic for calculating the P.F. amount;
The information as stated are urgently needed.
With regards,
Apurba
after 9y ear & 8 month i leave my job & i want to withdrawl my pesion fund can its possibal
Q- i have left my first job on 11th may 2011 and join another firm but still we have not transfer my EPF account to our new firm can we transfer the old account in new firm account. pl suggest me correct way
Nandlal Yadav
SIR WT HAPPENS IF A PERSON LEFT THE COMPANY WITH OUT RESINGING AND JOINED IN OTHER CAMPANY WT HAPPENS TO OLD PF ACCOUNT
Dear Sir,
I am retired on 31.10.2011 from Tamil Nadu Government Public sector undertaking.Delay in getting of pension for meger amount from the EPF office in Chennai Regional Office. Why delay for the release of pension sanction to me.
if a employee become member of EPF for only 4 month & then left the job can he receive his 4 month deposit epf amount with his Pension fund amt too?
during an audit i found that in a month salary paid to employees as under-
basic+employee contribution-employee & employer contribution..
is it correct??
i not tell me the correct one
can i withdraw pension share 8.33% after completing 10 Years.
dear sir,
what is the legal obligation of the employer for deduction of provident Fund of the employee who are in probation period. what is the provision under the PF Act, 1952.
Dear Sir, I am worked for a Ltd. Co. but after reigned company can’t settle my EPF Amount. EPF says that, Company in Case 7, they can’t submitted all relevant document, but company says they submitted the all, but both of them, can’t provide any written document for the same, then what can I do? Please help me.
I am a computer operator contract basis working in Jodhpur Discom( Electricity company) a Nigam company ( A Govt of Rajasthan) from 23 Jan 2006 to till date but some finance reason terminate me. ( Reason : No Sanction ) so god help me !!!!!!!!
Mobile No : 08745040096
hi i am working with a company from 07 sep 1995.my basic selary was at the time of joining Rs.975/- and current basic is Rs.18000/-.if i leave the company today than i am eligibale for pension? if yes than how much amt. we will received as pansion amt. per month in hand and in which age my pansion will start.Pls. conform.
Thanks and rgds.
Niranjan…
Which form is filled to get the pension (Contract labour) in case of death
Q. When an employee leaves the organisation, which department should follow up with the PF office for the employee’s withdrawal of PF amount? Is this the Admin/HR’s responsibility or the Accounts dept’s responsibility? I would really appreciate if you could clarify on this. Thanks, William.
Is it possible for an employee to contribute at a higher rate of interest than 12 % &
after some period can he contribute normal rate of interest at @ 12%?
Respected Sir, I have not transferred my PF amount from the previous employer and it is about more than 8 years. Please advise is there a possiblity in transferring my old PF account to the current one
Arunendra Kumar Pandey wrote on 7 May, 2012, 15:52
Dear Sir, I had worked with a company name is I2I telesourse Ltd upto five Year . but i have not widrawal my Pf. please suggest. How can i widrawal my PF if Employer is not available.
Name – Arunendra Kumar Pandey
Dear Sir, I had worked with a company name is I2I telesourse Ltd in five . but i have not widrawal my Pf. please suggest. How can i widrawal my PF if Employer is not available.
Name – Arunendra Kumar Pandey
Sir
Presently I am working for a Salient BPO Gurgaon, on a contractual basis. Company hired me for the contract of three month after that they issued again a new contract for the three more month. They are giving me a 10000 per month as compensation from the beginning. But at the last month salary they deducted 6000 Rs. tax on my whole six month income. Is it justify according to tax rules. As i know my income is under 2 lacs, so there is no need of such taxes. kindly guide me with your proper suggestion. Thanks
I am holding a EPF Pension Scheme Certificate, 1995. I was in the rolls of a company from 1987 to 2000. when I resigned from the Company, I was provided with the scheme certificate. Again joined another company but forgot to submit the scheme certificate and resigned the job wef March 2012. Now I want to know whether I can claim the money in my pension account and what is the procedure?
what happens to the P.F when the employee is thrown out of the company? do the employer need to return the employees fund?
when i was worked in hindu college guntur ,andhra pradesh.., i have an epf account,,,,later they were stopped the contract basic salaries ..again they were started hourley basics….they stopped the epf ……how can i continue that epf no now.. i have an interest to continue that epf,,,,please convey the information to me.
thanq
i have worked in college since 02-08-2002 to 2009 …they deducted the epf amount….then they they did not do
when i was worked in hindu college guntur ,andhra pradesh.., i have an epf account,,,,later they were stopped the contract basic salaries ..again they were started hourley basics….they stopped the epf ……how can i continue that epf no now.. i have an interest to continue that epf,,,,please convey the information to me.
thanq
i have retired in 2010 from my company. but i did not witdraw my epf amount. i want to knw that can i get interest on that amount till current year. because it is not a running account.
Sir,I have worked with Connect Market Data Pvt.LtdBangalore.Karnataka.India..from14/04/2005 to 10/03/2007,as Sr.Sales Executive,and I left the organaisation and presently un employeed,by that time I was deductted PF Rs.1034=00,Throug my salary slip,and my PF Code is DL/21679/0,Now I want to withdraw my PF amount,from were I have to contact to withdraw the amoun,and what procedure to claim the money.kindly repply for the same.Kindly repply to girirajmg@rediffmail.com,my fathers mail box.Thanking you sir.
sir,
I am working in ltd company at mumbai
i want to know what to do if employer is not paying provident fund?
Please help asap
thanks
sanjay
I am holding an Employee Provident Fund Organisation Employees Pension Scheme, 1995, Maharashtra & Goa (Mumbai) certificate. This certificate is given by the organisation when I took VRS on May 2000, which was by oversignt, not submitted to the subsequent employer. Now I resigned from the last employer. Can I withdrawn the amount in the Pension scheme certificate and if so, what are the procedures?
Dear Sir,
We had a private trust of excluded employees till our trustees decided to transfer the balances to RPFC with effect from 1st April 2009. However, prior to the transfer, there have been a lot of irregularities as apparently the private trust did not seek income tax clearance for the years 2004-2009, no yearly returns filed with the income tax authority, did not take permission to run the trust from RPFC, and most importantly did not pay interest rate as declared by the govt.of india in every financial year. Though, the funds have been transferred to RPFC in 2009, the employees are not able to access their accounts apparently it is felt that the company’s account is still under scrutiny or on freeze. Please advise. Thanks very much.
due to govt decision,employee of psu,s have been recently shifted from CDA pay scale to IDA payscale.accordingly some employee benefited and some employee put to loss.due to reversion in lower pay scale w.e.f. 1995 corporation is now recoverying excess amount paid by him towards cpf contribution.Is corporation is legally entitled to recover excess amount deposited by him towards cpf contribution consequent upon fixing of pay scale in lower grade
dear sir
how to get my pf . i left my job since june 2011 but till date i did not get my pf. no any help by hdfclife and his hr dept.
Sir,
I was a Kendriya Vidyalaya Sangathan employee retired after 26 years of service on December 2011. I had opted for CPF during 1988 anticipating that one more option may be asked.but KVS didn’t give any more option and my requests were turned down.Other departments were given options. I am with the mere CPF management Share for the complete life. Is it possible to change into GPF cum pension scheme now.
I shall be highly obliged for your reply
Thomas
Dear sir i am working in pravate company a few month before i drawn my pf. I received rs73800 for Pf & rs 20800 for pension.But us dout about pension amout so please give me information regarding pension sheme & withdrawl benifits
Dear sir, Please let us give some example how to fill returns (Part-A Members wage Detail)
give the clear detail by your reply.
Naveed
hi sir my pf ac is already stilled but my bank account is closed .please tell me what i do.
Sir I was in a nationalized bank 1999 I got dismissed for trade union activities later case was filed before CGIT, the same was set-aside as crs with back wages of 50% with all consequential benefits and contunity of service later bank went appeal before high court and the HC passed an order by granting 40% of back wages and all other remained as per the CGIT orders.
The bank has not paid consequential retirement benefits as 100% they paid only 40% even MPF % BPF is also calculated 40% and pension is not granted till date.
In view of the above please let me know who is the authority to settle my issues of PF and Pension. Further I made an inquiry with RPF dep also they have informed me to file before the registrar of companies for redressing my grivence. Hence please inform me who is the right tribunal authority for settling my despute of the PF and pension in Bengaluru.
Thanking you with regards
Sir I was in a nationalized bank 1999 I got dismissed for trade union activities later case was filed before CGIT, the same was set-aside as crs with back wages of 50% with all consequential benefits and contunity of service later bank went appeal before high court and the HC passed an order by granting 40% of back wages and all other remained as per the CGIT orders.
The bank has not paid consequential retirement benefits as 100% they paid only 40% even MPF % BPF is also calculated 40% and pension is not granted till date.
In view of the above please let me know who is the authority to settle my issues of PF and Pension. Further I made an inquiry with RPF dep also they have informed me to file before the registrar of companies for redressing my grivence. Hence please inform me who is the right tribunal authority for settling my depute of the PF and pension.
Thanking you with regards
ESI Family Act : Mother in law eligible for married Female IP?. As per my opinion, must eligible mother in law for married female IP. Can it is possible to change in ESI ACT. for this matter.
Mother in law eligible for married Female IP?. As per my opinion, must eligible mother in law for married female IP. Can it is possible to change in ESI ACT. for this matter.
I am working in a Pharma company. My company is diducting PF from my salary & not filing it in to PF office. Online my account is showing seezed. what can I do?
dear sir
any scheme for PROVIDENT FUND by self employee
Hi All,
I want to take loan on my PF account towards purchasing of a house. The house we are purchasing will be registered in the name of my parents. And they are declared as dependents. Please let me know can I still claim the PF loan? I found in the internet that the property should be titled in the name of the PF account holder/spouse or jointly. Is there any way to claim the amount?
regards,
vijay