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,
I am working with an educational institute and I want to know is there exemption for educational institutions for deduction on behalf of Provident Fund (Employer & Employee contribution 12% of basic salary from each side)
If it is then what are the provisions to secure the future of employees those who are working with educational institutions.
Please let us know the fact.
Pramod Sharma
sir,
I worked with a school sarswathi vidyalaya matriculation school three years but i have not withdrawal my pf .please suggest how i can withdrawal my pf
I have not claimed my pf which is 15 years old, can i now get my pf amount.
Dear Sir,
As per the EPF Rules any establishment with over 20 employees has to register for EPF. However, if an establishment which does not have 20 employees yet it wants to register with EPF for the welfare of its employees, there are issues at various stages right from the stage where Registration Forms are required to be filled for getting the EPF Code, since even in the form the names of 21 Employees are required to be given.
Why can’t the authorities remove this stipulation of 20 employees and let any organization which wants to register with EPF are free to do so.
Hi ,
I worked with a software company for 10 months .My basic was 45,000 and i got the PF account number.
Now i moved to another company .
Can anyone tell me on how to transfer my PF and can any one let me know what does contribution form mean…………
HI,
I WORKED AT Mc DONALDS RESTAURENT FOR 6 MONTHS IN THE YEAR 2010-2011.BUT
Dear Sir,
Will there be any legal problem in case of not issuing pf to any existing employees if company strength is more than 150 and its completed more than a two years.
Kindly mail the answer.
kitna time lagega
i need some money because after 2 month my sister’s marrige so a want withdrawal my pf money.
plz give me anfo in hindi
i need some money because after 2 month my sister’s marrige so a want withdrawal my pf money
can i want withdrawal pf money without leave job
hi
pf after completing 10 year he is eligible for pension plan but for him not completed 58 year he d’not get any pension in middle or he can withdraw the pf amount on that time.
Lots of issues are there but no one is replying surprising factor.
1. @ S.HARIHARAN :- form is FORM13, u can take that print out also from epfindia.com or from HR dept of current employer.
2. @shakti :- Yes u can with draw ur pf amount by sending form19 & 10 c to pf office duily certified by ur employer.
3. @ Piyush :- Kindly cross check ur deduction amount with ur pay slip 1st. If u find that 2 months pf is deducted their u can directly approach to ur local EPF office N.B:- PF cycle period is March to Feb chances are there epf office also not update there master data too.
4. @Sushma:- to receive loan from pf Marriage these are the procedures
– only for self, son, daughter, brother & sister
– the member should have completed at least 7 years of service (not necessarily with the same employer, but should have transferred the PF monies from previous employers for consecutive period of 7 years)
– maximum of 3 times in the entire service
– maximum amount is 50% of employee’s share at the time of tendering application.
– the member should apply in Form 31 through employer
– marriage Invitation card should be submitted along with form as proof for marriage through employer.
5. @UD: Put an official complain in ur local RPFC .
6. @ Balaji:- Better option is 3rd on transfer 2 companies pf amount to 3rd company.
I WORKED IN A COMPANY/FACTORY FOR 23 YEARS AND DUE TO SUDDEN CLOSURE OF THE ESTABLISHMENT I RESIGNED. AFTER SOMETIME I JOINED ANOTHER COMPANY WHERE I JOINED UNDER PF WITH A NEW PF NUMBER. NOW I NEED TO TRANSFER MY EARLIER PF FUNDS TO MY PRESENT EMPLOYER. I AM DUE FOR RETIREMENT DURING SEP’13. WHEN I APPROACHED PF OFFICE FOR CLOSURE OF PF FUND, THEY SUGGESTED TO TRANSFER MY EARLIER COMPANY’S PF CONTRIBUTION TO MY PRESENT EMPLLOYER IN ORDER TO GET PENSION FROM BOTH COMPANIES A/C. THEY GAVE ME A FORM WHICH I LOST. CAN SOME ONE HELP ME AND GUIDE WHAT IS THAT FORM. PLS HELP
I have resigned for my job just after 5 months so pf amount is deducted for 5 months can i get it refunded.
please reply on my mail:- [email protected]
My client has received arrears of pension during the f.y.2011-12 , but she has to refund the amount of contribution to PF made by the employer, can he take any benefit of this refund at the time of filing of return of 2011-12
Sir,
Now One person has worked in ‘x’ company. In that company they deduct EPF. And also he has worked as part time employee in ‘y’ company.is there right to the ‘y’ company to deduct epf for that same person. if, yes how to a/c his ledger in pf a/c.
Dear sir,
My Previous employer was deducted PF from my salary, however when i downloaded my PF passbook, i found there were two months entry was missed & PF contribution was not paid for those two months, and then i resigned that after i got my PF amount at a time, but those two months contribution was not included in that amount, so please tell me how can i get back that amount?
Hi,
I am stuck into this situation please guide.
MY marriage is on 25th Feb, and I complete 7yrs on PF on 2nd march, so I need to know can my application be approved – for marriage also. Also…
I missed to move my old PF to New one, so if that can be considered as an exception then I will have 9yrs on PF. ( How soon can this be done?)
Lastly, Can the application be approved after marriage date . In my case 25th Marriage , and I completed in my new firm 2rd march, 7yrs.. ( But I have my Old PF details, not transferred :()..
Please guide ASAP ! If any exception can approve my loan on marriage
Hello,
I have left the company in the month of June and submitted my form in Oct 2012.Till date i have not received any updates.On enquiring i get a reply that My Ex company has not submitted the form to PF department.I had around 5 plus years of services and the money was deducted from my salary every month but as per my ex company they have not yet paid to PF department.
Please let me know what should be my action plan.
Thanks
UD
Dear Sir,
i worked for a retail company for 3 year and i rejoined after 2 months and
submit pf form HR Department.but i have no receive pf.i ask hr department but is not clarification my pF detail. so where i complain regarding this issue.
kindly give detail.
thanks & regards
aviral tiwari
Hi Sandeep,
I am a software professional and I had joined my second employer after working for 3 years with my 1 st company. I have not closed 1st employer’s my PF account with an idea to transfer it to my second employer’s PF account. Kindly clarify my below queries with respect to PF tarnsfer.
1) Should I transfer my PF amount from my 1 st employer to 2 nd employer or should I close and withdraw my 1 st employer’s PF account, Which option gives me best returns?
Also I had joined my 2 nd employer by last month and now I am getting a better offer from 3 rd employer and in that case if I join my 3 rd employer, I would have just stayed for 2 months with my second employer including my notice period.
2) Please clarify if I had initiated my PF transfer of my 1 st employer in my 2 nd employer and stayed with my 2nd employer for just 2 month and when I join 3 rd employer and I initiate my 2nd employer’s PF transfer whether I would be getting whole amount from 1 st employer and 2 nd employer in to my 3rd employer’s PF account?
3) Also Kindly clarify if I could directly transfer my 1 st employer’s PF amount to my 3 rd emploeyr’s PF Account, as because I am staying for just 2 months with my 2 nd employer?
Regards,
Balaji
Please let me know what is monthly return (7IF)?
I have closed the company in 2002 for which i have a Power DC connection certificate of year 2002, but we had not closed the EPF A/C. But after 10 years we want start a new firm in the same Land and building,is it possible to start the firm, we are ready to pay the old payments before 2002.Kindly suggests at earliest.
Q.1 what is current rate of interest in EPF and pension funds.
Q.2 if i withdraw the PF and pension fund before rendering the min. 10 years of the continuous service to pension fund, how the refund would be calculated and will there be any tax deduction against pension fund. if yes how much?
If i want to continue my previous company PF account in current company, which form i have to fill and give to my current employer. Please let me know.
Thanks.
I am Private company employee. can i withdraw PF amount of 3 years in employement.
My PF amount deduct from joing to company (Total=3 years).
I have been working with my organization for over 10.5 years now. I have applied for 7 Lakh of withdrawl from my EPF account gor home load repayment. My employer is saying that since my home loan is not from a nationalized bank I can’t withdraw any amount from my EPF for home loan payment. I have not seen any such condition based on my research. Can you let me know if there is any such condition?
Dear team,
Whether employer can deny forwarding form 10C and form 19 for final withdrawl due to retirement simply on plea of departmental overpayment recovery?
Dear Team,
I was worked in company from Apr-05 to Mar-06, employer deducted PF amount from my salary but they was not opened my PF account with PF office. Now they are not able to give PF amount to me. What I can do now?
Dear Sir / Madam ,
i want to know that can an employer pay ESI & PF of contractor labour persons from his own ESI & PF codes if contractor labour is less than 20 persons. if so please let me know, it is also applicable for more than 20 person labour contractor.
My Company has not payed the PF since last 9 months even though they have deducted the same from my Salary and the PF forms of the ex-emps are put on hold. In this scenario, what are the options available for me to withdraw my PF?
Is pf deduction means u r permanent employee…???
I am working in a company for last 10 years. On resignation OR force resignation from a company what would I do with my PF account may I continue or transfer my PF account to another company on which I am going to join. what will be the effect on final withdrawal or continuing the account. please reply on my mail [email protected]
I am working in a company for last 10 years. On resignation OR force resignation from a company what would I do with my PF account may I continue or transfer my PF account another company on which I am going to join.
I have resigned for my job just after 5 months so pf amount is deducted for 5 months can i get it refunded. My current employer opened a new account for me…
please reply on my mail:- [email protected]
How many days it can take from PF dept after the PF amount is approved for withdrawal.?
I filled my pf form on 15 december 2012 when will i get my pf amount
my salary is 6000 and they mentioned PF as 233 i worked for 11 Months how much i will receive Pf amount…
Sir, i was working with tata indicom but resigned before 1 year. I had applied for pf but i lost my pf no.,so please suggest me what should i do to get my pf.
with regards
ranbir singh
Hi,
Could you please let me know, how do we get tax exemption on deducted PF amount in case of contract employee?? Because, there is no provision in the FORM 16A for PF amount exemption.
Regards
Shiddesh
Dear
I worked in a company for 14 years as a employee but now I became a proprietor of a company .Can I continoue to invest in my PF account
Sir,
I have been working in A Group company for last 12 years & as a proof of salary i have been provided Form 16 every year since my joining, but my employer have started deducting PF only for last 2 years.
Now at this moment i realize my financial huge lose in terms of PF & Pension scheme.
Sir, What option should i adopt to compensate this lose.
Regards
NK Jha
Post retirement how long one can hold the funds with the institution & get interest also.
sir,
from past 12 years i have worked for 5 different companies and i have not withdrawn pf, my previous company i have submitted pf transfer forms of all
mp previous companies no they are saying that it was not transferred i want to
know weather my money is safe or not and to transfer all my previous pf to my current pf account what i have to do please guide me and help me
if basic is 20,000/ what will be pf rules?
Dear Sir,
Can any expert explain the section 76(a) of PF Act as “deducting or attempting to deduct whole or part of employer PF contribution from employee wages”
or
If an employer made such arrangement in appointment letter( subsequent increment /promotion letter) to discharge their PF contribution liability from employee wages and further They add and deduct the same contribution from salary and showing in its monthly pay slip.
What are the legal action can take by an employee against the section 76(a).
Kishore Pandit
Sir,
I worked in limited company since oct 1993 to jun 1994. My PF slip shown the balance 201000/= in employee’s column and 56000 in Employers colmuns (closing balance FY 2006-2007. But I have received only Rs. 357000/= on 19.10.2012 against my withdrawal request. Please help me how much amount more received and how can get my pf statement.
Sir,
My father is died and i have fill up live form Nov.2011, Write now my mother has not receive any money from their side.
I hope that you will positive response as soon as possible
Warm regards
Umesh Rai
i an cg employee my service 19year 7month and 7 day retrirment complit 60year howmany pension get me