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
As i left my previous company within 5 months .I have submitted Form 19 and 10 c.10C was rejected, why i don’t know.Can any one tell me how it rejected.
I APPLIED MY PF AND PENSION FORM NO 19 & FORM 10C BUT ONLY APPROVED FORM 19 AND FORM 10 C HAS BEEN REJECTED. THEY SAID FORM 10C AMOUNT NOT PAID DUE TO REMITTANCE FOR THE EMPLOYERS. PLS KINDLY SUGGEST WHAT TO DO?
I joined company A on August 2005 and worked for 1 year. They created a PF account for me. Then 1 year I took a break and did some research assistantship. So no PF was deposited for that time. Then again in 2007 August I took up another job. I transferred the old PF account to the new Company. I worked in the company till 2010 January. After that i left for starting my own venture. And no PF has been deposited from 2010 january till now.
So I have totally worked for 3 1/2 years of service in 2 different companies.
I heard that PF amount becomes dormant after 3 years (There is no interest). So I am planning to withdraw the amount after closing the account. Is it advisable ?. And will there be TDS on the source on the amount ?. If yes, whats the percentage. You can assume that I don’t earn any money this year since i am running a startup. And my amount is 2.5 lakhs rupees. Or is there a way I can reactivate the account ?
Can you advice me on the same please.
Hi All,
Can somebody tell me what is the time period to get the PF amount claimed. Is it 15 days or 45 days ?
Thanks & regards,
Vijay Thakur
i am running an education institute since last 4 years with employees count 30 approx. i was not aware about the PF scheme earlier and now i came to know these are mandate for the employees who are earning up to 6,500/-. Question is what if i would like to enroll for EPF scheme? should i start the provision now and start contributing from this year only or i have to contribute since the day one, we started the institute and have to deposit the cumulative total of amount in PF dept?
Please suggest, i am getting multiple advises and getting confuse.
thanks
Haider
I retired on 31.08.2012 and already submitted for withdrawal and pension settlement. Let me know the time limit for settlement of pension and pf balance
amount
Sir
One of My friend Join PF on 01/04/2007 & resign from Services on July 2009 & submitted form 19 & 10 c & received their dues.
On 06/02/2012 he met with an accident .Now he is no more.Pl suggest weather his family is entitle for the Pension EPS or not.
Thanks
hai i am working as a assistant professor for the past 2 years in engineering college and my salary is consolidated pay 13,000rs. recently i have some disputes with my organisation. so that i resign the job and left the organisation. i asked to my principal put the sign on epf form but he is not sign on that papers. what can i do now.is there any chance to with draw my pf amount please help me. what type of action i want to take towards the organisation.
sir,
i am neeraj, i want to know if a person retired and his pf contribution deposited in Company pf trust but after that he join new company without any gape and also continue Pf Contribution, so he liable for PF Withdrawn by previous company.
1. If any company wants to close the code then what is the procedure for the same. Is there any request form required to fill or simple application required to submit. Pl reply.
Dear Friends,
My basic salary is Rs. 9000 and my Date of joining is May’11, can anyone help me to compute my PF deduction for the year alongwith the Employers contribution.. Thank you
I worked in a service industry from 16.11.2009 to 18.08.2011. After that my PF Form was submitted to PF office on 23.02.2012 i.e. after 6 months from the date of leaving the organization. As per the PF rules it should be submitted after 2 months from the date of leaving the organization. Thereafter, till date there is no record of my PF Form showing in Kandivali PF Branch even though i have acknowledgement of submitting the same. And most importantly the organization is not much active in getting touch with PF brance & getting it resolved. Please advice what can be done on this issue. Please revert back on [email protected]
my salary at the time of joining was more than 6500/- and i have completed around 14 years of service now i have resigned and now i want to withdraw the whole of my family pension fund amount and pf amount ,is it possible and what are the rules for not opting the pension scheme
both firm esi,pf nos is same
please tell us our company names jdson steels pvt ltd ,but still now our other unit/branch name bala ji track, dear sir, please tell me firm names is differnt other then company but sale tax no is same shown, whose pf nos codes ,esis code is also same
I am working in PSU and resignation after 17 year of service and joined private company . My pension fund will be transfer or withdraw for that what will be the procedure and with form to be filled up . My earlier PF office is at Chennai and now I am working in Private company at Navi-mumbai.
So clarify my doubts and guide me .
how much time it will take withdraw benefit to clear
Sir, In ESEVA while submitting the EPF Challan details or workers, by mistake some workers code is not uploaded due to some clerical error. Eg. Contribution is gone to other worker code by mistake. In such case, can we re-submit the Contribution details with corect details of workers again for which actual payment is alreay made to EPF organization.
This is a general problem every one might face. Even in IT, VAT etc there is a provision to re-submit the factual details on request.
I am an employer. I did not submit the Employee Provident Fund for my workers from December 2011 to June 2012. Now I want to submit the same. How can I submit the same ?
Sir
Thanks for giving very precise answers to everyone.
Pension holder under EPS-95 scheme
My query is as under :-
worked in x company from 01.04.79 to 13.07.89
worked in y company from 13.07.89 to 09.10.2002 but in the y company infancy period was applicable from 14.07.89 to 31.05.1992.
My service period has been considered from 01.04.79 to 13.07.89 & 01.06.1992 to 09.02.02 not taking into consideration the infancy period, although my PF balance was transferred from x to y .
Will you please advise me about the impact of infancy period on continuous service from 01.04.79 tp 09.10.02
Awaiting expert advice at the earliest
Kind Regards
KHR, Visakhapatnam
If my Basic salary is Rs. 10000/- then please tell me the employees contribution and employers contribution.
sir,
i have been worked for x company for past 1 year…now i joined y company,i thought of transfer my pf account to current y company…while checking my previous company salary slip i found that there is no pf number in it but they has deducted in my salary…so kindly help me what is the remedy for it and also how to transfer it to my current company….sir,reply me as soon as possible
Hi, I wanted to know how to get refund of PF monthly Contribution deposited extra by mistake. kindly suggest the way i can apply for the same.
Dear Sir,
Could you please confirm how much maximum limit of Voluntary Provident Fund deduction on his/her Basic Salary?
Regards
Sanjeet Singh
HI,
I worked an IT company for 5 yrrs 3 month in mumbai in my previous job having PF a/c. but my current job doesn’t have PF a/c .
So what is recomendaded in such case ?
My thoughts says :
is it possible to withdraw that money and invest somewhere ? if yes how to withdraw. ?
or how long i can keep that previouse PF a/c ? is there any limit for inactivity ?
Kindly suggest . Thanks,
Respected Sir, I have gone through questions and answers. Answers were correctly made and accurate. Please kindly give particulars on the following points:-
a) Withdrawal from the fund, terms and conditions, is there any time limit for withdrawal
b) What is the procedure, form and conditions for withdrawal.
c) Is there any limitation for withdrawal
if basic salary is not in proprietor co then how can deduct Providend fund & what is the procedure of them?
I have submitted my Income Tax Return and form 16 to Income Tax Office Tambaram. Acknowledgement Receipt Number: 114523, Date: 04-08-2010
They have sent the refund to my old address, and the same is returned to the tambaram office on 09-01-2012. For this i have attached online statement.
And then i have submitted a request letter with my current address proof to tambaram office on 27-03-2012. I waited for some time with no response from the income tax office.
After that i have sent a complaint to IT Ombudsman on 21-05-2012, For this i got a reply from Ombudsman on 28-05-2012 stating that i have to make a complaint to Joint Commissioner of Income Tax, Tambaram.
After that i have submitted a written complaint to Joint Commissioner of Income Tax, Salary Range, Ward I-(1) on 13th of June 2012.
Waited for a month with no response or reply or TDS refund, So Again i wrote a complaint to IT Ombudsman requesting for TDS refund.
Answers i would like to know from you now
1. Will the Ombudsman take my case this time, is there any chance to reject my complaint now, since i have approached him for the same reason before.
2. If he rejects what should i do next?
3. In my last letter to Ombudsman i didn’t mentioned that i need refund amount with interest. Will they send the refund with interest? If yes, then at what rate of Interest?
4. I have mentioned that refund it directly to my account, and also provided my account details, can they send it directly to my account or not?
Thanks in advance, i would like to know answers, please reply.
If i worked in a organisation for a period of 5 months then resigned. For that period employer deducted my PF contribution. will I get refund of pf for that period of time.
i’m working as part time lecture in an engineering college(private college) from feb2012 (6 months). the authorities cut TDS 12% from my salary every month. but not pf. when i asked them about pf they give irrelevant answers please do guide me?
1)i just want to know whether pf is applicable for part time lecturers also in private college or not?
2)if yes then whats the procedure to ask authoritatively to the authorities to cut my pf?
I applied for PF but i got message that form 9 approved and form 16c rejected can i get money in this case?
MY brother death by accident,i dont know pf nominee name…i know only pf ac no…..pls help me how to know nominee name & how to claim…pls help me through email …[email protected]
When I joined the company i gave my first name as Swaroop and Sir name as Balakrishnan and my name in full was Swaroop Balakrishnan.Whereas my bank a/c is in name of B Swaroop.Other records are all in name of Swaroop B or B Swaroop.Now when I applied for PF reimbursement they have sent back the form stating name change.What is the solution.Can I submit affadavit signed by rotary on my name as Swaroop Balakrishnan.Please advise.Tks.
I wrote my name as balakrishna on the PF form but actually Balakrishna Murty. Now i want to redeem the PF amount. Is there any problem to get my PF amount ? (Because of this name correction) All my documents…. PAN, Bank A/c, Aadhar Card in all my name is Balakrishna Murty.
sir, i worked in labour department in kishanganj bihar from 10th November 2006 to December 2008 and left the job in January 2009. i want to return my pf amount from pf department please suggest me what is the process taking pf amount… it is necessary to me please help me sir..
Dear Sir, Any dedline for settling provident fund claims?
Due to the misunderstood between HR consultant and account concern person, they forgot to pay the PF contribution amount of one employee only, even though the employee is regular. And after few months they realized their fault then what should do in this situation?
Please guide me.
one of my clients place, some persons are working for salary Rs.10K, ER deducting and paying the contribution on full 10K(ie: Rs1200 ee and Rs,1361/- ER contribution respectively. Now, employer insisting to deduct and pay the contribution only on Rs.6500/-(restriction). Is it Ok, once employees are covered on higher rate, is it possible to restrict for Rs.6500/-
Hi,
Please some one help me to know how this PF Withdrawal works. actually i got my PF amount PF and EPS Rs. 6148/- and Rs. 2754/-. on 27 june 2012 but this is not a complete amount of my PF actually it is 32400 Rs something on my PF withdrawal form.So that i had generated grievance on EPF site to know when my remaining amount will come. but what they replied is, This is with reference to your Grievance registered vide Registration Number DELSO/E/2012/05948.
It is informed that your grievance is being treated as non-actionable due to the following reason(s):
Final PF and EPS claim were settled for Rs. 6148/- and Rs. 2754/-.
so what this means? there is no more money is going to come from PF office. where as my PF claim status still showing payment is under process.
please some one give me solution for this.
I was employee of sbi for 2 years 9 months after resiging the service bank has sanctioned 52000/- as pf. But after few months bank has recoverd 26302/- and said that u have not to paid bank’s contribution please advice me is it right or wrong. am a eligible to draw bank’s contribution. or not
Hello;
I want to know if any company has provide employees contact letter (appoint by contact base) for any particular post, so he/ she is eligible for company PF or Not.
hi, i am applied for PF transer from previous company, by filling form 13. how i may know wehter the transfer happend or not?
is there any procedure to findout
DEAR SIR , I HAVE TAKEN WITHDRAWAL BENIFIT FROM PF DEPTT.LATER I JOIN SAME ESTABLISHMENT , BUT CONTRACTOR ALLOTTED OLD PF ACCOUNT NO . I AGAIN APPLY FOR PF CLAIM ,MY APPLICATION RETURN DUE TO CLOSED ACCOUNT. I HAVE TOLD TO THE CONTRACTOR FOR RECTIFICATION BUT REFUSE ON THIS MATTER. WHAT SHOULD BE DO
please some one tell me if any establishment have 20 employees and the basic salary of all the employees more than 8000/- p.m now in that case is estalishment is liable for pf or not.
A contractor was awarded to provide 4 clerks on contract basis for five months. we are paying him 9500/- per month with the condition that the contractor will deposit E.P.F./E.S.I. of the said employees.The contractor call as service provider is having only these four employees. The service provider is not deposting the E.P.F./E.S.I with the plea that he is having employees less than 20. so he does covered under the act. so my question is, the service provider is taking amount on account of E.P.F./E.S.I from us but not depositing the with provident fund department. then where this amount will go? please clarify
Dear friends,
I have a doubt regarding the PF issue, Mr.Siddu worked in a manufacturing company for 2 years from 2006-2008, and then resigned the job due to the some personal problems, he applied for his PF after 2 years of his resignation dated, unfortunately the particular company was closed due to the managerial problems, in PF online Mr.Sidu record was not found, and finally my question is how can he will get his PF ? is he eligible for that? because it has already taken the time of around 4 years..
Tell me the answer…
will wait for your positive feedback..
thanking you..
if all employee of a private limited company getting salary 10000 and above it need not deduct p.f it is right
My salary is Rs. 8000/-. How much I contribute to EPF & my employer. Plz tell me with explanation.
I am working in a Pvt. Ltd. com. which’s last 6months EPF is not deposited. Plz tell me I can deposite epf and how much penalty will be drawn.
Thanks
Avi Singh
i want withdrawal of my pf amount without leaving a job.