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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)

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541 Comments

  1. siva says:

    hi ,
    i have one dugout any other employee without pf and esi working in company their means that process is possible or not .possiable means any other forms their means tell me

  2. mohammad rizwan says:

    Very Useful information ….

    But I have a query that what is the amount deduced if the installment of PF is not being deposited for long time up to one year? 

    I resigned a company where I was having PF account but joined new company where PF account was not available and there was no such facilities of PF and all, so my previous PF account was disconituned

    Is there any deductions on my total PF amount?, If yes, How much? and at what basis?

  3. NANDHA GOPAL P says:

    clearly expand all question i have one doubt about rejoin he joined at one company and once again he joined same company we will continous the last account number

  4. Binita Bhutia says:

    I left my job in 2010 and I applied 2 – 3 times but still they didn’t clear my PF ….now for the last time I want to apply again….Can I Get my Pf after 4years of leaving the job…..

  5. SAJAL DEB says:

    Dear Sir/Madam,
    I have worked in a Private sector bank for 16 years and regine from the job, withdrawn PF/Gratuity, now i want to withdraw my EPS, i have submit the 10C along with all necessary procedure , but same is not processed due to following reason as per bank,
    SERVICE MORE THAN 10 YEARS SO MEMBER IS ELIGIBLE FOR SCHEME CERTIFICATE.
    I will like to withdraw the amount and not willing to continue for the scheme certificate. Can i able to withdrawn the amount/scheme.
    Please guide.
    Regards
    Sajal Deb

  6. a k mishra says:

    i had submitted my claim forms 19 and 10C to my employer but they did not forwarded it but returned to me. want to know if i can directly submit it to the PF office. if yes, what is the procedure. thank you.

  7. Poonam says:

    Pl help me to resolve the following query:

    A person held an EPF account by his employer. He quitted the job 20 years ago but at the time of resigning, neither he claimed the amount nor got the account transferred. He served in that organization for 10 years. Can he now recover the money?
    If yes, how?

  8. BABU says:

    Dear Sir,

    I am working in an MNC and have EPF account.
    I have joined in the MNC on 01/04/2005 and continueing my service.
    My company retirement age is 60 years. I will complete 58 years
    as on 30/09/2014. A brief about my previous employment is as under:-

    1) I have received Scheme Certificate from PF Office for my
    previous empolyment: [from 01/04/1995 to 31/03/2004] – 9 years
    I have taken fully withdrawal of my P.F.ammount.

    2) I have served in another Company for a period of 1 year.
    [from 01/04/2004 to 31/03/2005] – 1 year
    I have transferred my P.F. to the current employer P.F.ACCOUNT.
    I have not received Scheme certificate for this 1 year.

    3) I have joined in another company from 01/04/2005 and my service
    is continueing and retirement age is 60 years. My date of birth
    is 30/09/1956.

    Since I complete 58 years as on 30/09/1956, shall I forward my
    scheme certificate to P.F.Office immediately to add-on my service
    for 9 years to the current service period ?

    Am I eligible to get EPF PENSION when I complete 58 years with my
    previous service ( 9 years + 10 years & 6 months) ? Where this will be rounded to 20 years + 2 year bonus ?

    If I continue my service in the same company, whether they will contribute P.F. to pension account or they will contribute fully to P.F. ACCOUNT (Employer & Employee 12%) ?

    If I am elibile for pension after 58 years, how can I apply for it?

    Awaiting your valuable guidance for my clarifications since my P.F Office is situated in Bandra (Maharastra).

    Best Regards
    Babu

  9. Monika Rani says:

    Hi,

    Can we apply loan , if ‘marriage date’ is before ‘date of completing 7 years’ ?
    Suppose, I want to apply in Dec 2014 but i will complete 7 years in Aug 2015, is it possible?

    Also i read somewhere that we can apply loan for dependent siblings. Is it necessary that sibling should not be earning? What,If he/she also works in a reputed MNC?

    Thanks,
    Monika

  10. Arun Singh says:

    dear sir
    is it possible to withdraw the the PF amount from the company if i have not given the resignation from same organization but i left the company due to some personnel reson.

    please suggest.

    thanks

  11. BISWAJIT MOHAPATRA says:

    Dear sir,
    I am working in Pharma company. From june 1996 to August 2004, i was working in a kolkotta based company and resigned and joined in a Delhi based company in same date. I withdrawn the PF and and done the pension as scheeme certificate which suppose to produce in Delhi company which was not done by me to produce. I have left 2nd company in 29th.Dec.2012 and joined in a new company. I have not claimed any pf and pension in 2nd company.Almost 8 years in 1st company and 8.4yrs in 2nd company. Should i eligible for pension? kindly guide what to do,

    Regards,
    Biswajit Mohapatra

  12. Bablu Pandit says:

    I have resigned my job , but my employer don’t sign on my EPF claim forms, Can I submit EPF claim signed / attested by Bank Manager or Councillors or MLA persons without signed by principal employer ?

  13. Gopinathan says:

    I am a EPF pensioner. My former employer has decided to set up his own pension scheme which is considered to be more beneficial than the one being provided by EPF organisation. What are the terms and conditions that my former employer should follow to switch over to his own scheme of pension? Kindly furnish me with an e mail reply

  14. ashit says:

    Dear Sir,

    I saw your website and I felt encouraged to ask this question. I did not readily find answer to this question on google.

    4 years back, upon change in my job, I intiated PF transfer from one company managed PF trust to Govt managed PF trust. From the cheque issued from previous trust to cheque encashed in the new trust took 3 months!

    As the amount was around 10 lakh, I lost 3 months of interest ( about 27000/-).

    Sir is there something that I can follow up to get back the interest amount? What is the PF rule on interest lost in such a case.

    Thanks in advance,
    Regards,
    Ashit Singh

  15. anu says:

    i was working with a private company for 3 months and i left the job by dec’13.now i dont have any job.can anyone tell me am i eligible to withdraw the provident fund

  16. awadhes bharti says:

    I was working in Dynavison Limited(Madras),which had closed almost twenty year ago.How can i get my EPF amount contribution

  17. SUJIT says:

    DEAR SIR ,

    According to the question no 28 , 29 and 30
    What if the company or firm does the indemnity bond or work order for a contractor for statutary compliances does it relief the company or firm to be not part of provident fund . and hence firm or company or a firm does not have the contactor`s labour report or attendence . hence the company pays to the contractor on rate basis per sq.ft ?? Kindly reply asap

  18. Faiyaz Ahmed says:

    i have requested for PF withdrawl for my PF account.As per the requirement i have sent my cancelled cheque along with PF withdrawl form,but there is a small diffrence in the name My PF account name is FAIYAZ AHMED LABBE but my Bank account name shows FAYAZ AHMED LABBE, will this create problem while clearing my PF account?

    please confirm..

    Thanks,
    FAIYAZ.

  19. k.ANISH KUMAR says:

    sir, Iam a homeworker for a company. Iam getting wages for National & festival holidays @3% on wages already earned.The said N&FH wages paid to me at once in a year.The company is deducting P.F contribution @10% on said N&F H wages.whether this collection p.F contribution is must as per act or not?

  20. Nirmalyo says:

    Dear Sir,
    I have worked with a ISO Certified IT Company as a pay role employee more than 3 years.But I did not have PF account.Is it legal for a company engaging his employee without creating his pf account who is working more than 3 years.If there is any criteria? like basic scale.
    Please suggest.

  21. LALITHA PRASAD says:

    Dear Sir.,
    One of the employer stopped deductions of PF amounts from his employees and not remitting to PF authorities since last seven months. What will effect, if employer wants to continue to comply PF rules from this month onwards.

  22. Sravan says:

    Dear all,
    Please note that there is a minor mistake in the answer for question No-5.
    Actually the whole contribution of employee i.e. 12% goes to PF account and 3.67% employer contribution goes to PF account and remaining 8.33%goes to Emplooyee pension Scheme Account. In the above answer it is given vice versa which is wrong.

  23. KAMALA says:

    I HAVE ALREADY 1TIME RESIGN & WITHAL PF FUND. 2ND TIME I JOIN JOB THIS COMPANY BUT PF FUND START THIS CLOSED ACCOUNT REJOIN. I HAVE NO KNOWLEDGE ABOUT THIS CONDITION. ALREADY CLOSED ACCOUNT NOT OPEN SECOND TIME.

  24. Amit says:

    Hi,
    Currently amnt of Rs 1600/- gets deposited as PF. I want to increase this amnt to 3000/-. Request all to Kindly guide in this matter.

  25. Ujjal Datta says:

    Dear All,

    Can anyone tell me the following:

    Corporation has booked Provision on arear wages w.e.f. 01.01.2007 to 31.12.2012 in the books of account, but arrear paid only from 01.04.2011 to 31.12.2012 as per presidential directives and accordingly paid pf contribution in both employer and employee share on the due date of payment. Can employer be liable to pay PF Contribution on provision for arrear wages prior to 01.04.2011 (i.e., w.e.f 01.01.2007 to 31.03.2011)? Please clerify with mentioning relevant laws with section, cases etc.

  26. MB says:

    I started working in year 2003 and started contributing to PF.
    In Jan-2007 I joined another organization and got my PF transferred there.
    In Aug 2007, I further joined another organization and got my transferred there.
    In Jul 2011, I joined another organization but didn’t get my pf transferred . Since Jun 2011 my employer is maintaining diff PF A/c.

    Now if i want to withdraw PF from the account wghere i contributed last in Jun 2011, will b charged penalty or taxes….

  27. santosh says:

    sir; i am dismissal fm. service of crpf as a rank of operator my unit send me nps form gp102 i am join in job in june 2004 what intrest rate is found in new pension system

  28. jitendra says:

    one senior officer,re-employed,but the mgt. is not willing to continue PF contribution@12% DURING EXTENSION,after his supperennuation age of 60 yrs.pl guide by mail at the earliest pl. Thanks

  29. Ghanshyam Jaju says:

    ITR 7 xls utility on efiling portal has been made available for filing. Our trust have no income from House Property and business. There is no option of Not Applicable in related Schedule and while filing the ITR 7 Property details or business details are asked while generating xml file Please guide how we should efile the ITR 7

  30. Rajendiran says:

    I have transferred my PF amount from my past company to present. When i checked E passbook i have noticed employee share more and employee share is very less. there is no amount in pension scheme also. Then where is the balance amount. Please clarify me.

  31. jennifer dsouza says:

    i had worked as a teacher 10 yrs ago, and did not claim the pf money.
    is it possible that i can claim now???….will i get the money now???…do i req only the pf withdrawal form to submit???….are there any more forms req???

  32. shiny says:

    If the employers contribution is included in the CTC itself and if the employee is not opting for PF account , will that employers contribution be include in the takehome?

  33. Navaneetha Krishnan says:

    Hi sir,

    I have not transfered my PF amount for past 6 years because of my existing and current company is not followed about my PF transfer.

    How come i take my existing PF amount and who is the contact person.I am looking forward your support.

  34. Rekha says:

    hi i had been working in central govt company in contract base i had been reigned my job. salary had been raised and they had been paid arrears and they had refund the PT amount which they had been deducted from our salary. now they are nor ready to pay arrears and pt amount who had been reigned and not in the role. so any one can help me were to give a sample letter for requesting for that amounts

  35. mandeep says:

    I HAVE WORKED IN A SCHOOL FROM LAST 5 YEARS AND MY EPF STARTED FROM OCT 2011 AND NOW IN MARCH 2013 THEY RELIEVED ME WITHOUT ANY NOTICE AND ANY REASON WHAT CAN I DO TO GET MY JOB AGAIN? PLS SEND ME INFROMATION ABOUT RULES…CAN I FILL RTI FORM ?

  36. Dr.Pradeep M.Pitke says:

    I left my job in Dec.2006 in Cadila Pharma.I went to another company in Hyderabad.
    Now I am retired & in want of money.I have applied through my employer for my PF dues.their mobile reply was SRBRH 13020000280 5 MEMBER ACCOUNT NO SRBRH000135700AO001230 HAS BEEN REJECTED.
    i HAVE NOT WITHDRAWN THE MONEY.wHAT CAN i DO TO GET MY MONEY?

  37. NITEEN TULVE says:

    Sir Iam working in Ltd.company head office in Bengal and my working location in mumbai.I am going to retired after 3 years but because of some urgent reason I want to withdraw my PF.But since it is ltd company and our PF is in companies private TRUST.Companies financial condition not so well and it is very sad that we have not received our salary since 18 Month so Pls tell me.

    1) How to withdraw my Full PF With all benefit.
    2)What benefit I will not get if I WITHDRAW it now.
    3)Will I get pension and Gratuity.

    Your advise will be more valuable for me to sort out the problem

    NITEEN TULVE

  38. Jignesh says:

    Above 25 years aged son is eligible monthly pension scheme under EPS scheme in the event of his father-PF member died also nominate mother died?

  39. Snehal Sukhadia says:

    I was working with a company till November 2012 and was a part of the PF scheme. After that till March 15, 2013 I was running my own business. Now I have got a job and joining a company again. My questions are:

    1. Can I withdraw the amount of PF from the previous employer?
    2. Can I opt for not being a part of the PF Scheme during my new employment?

  40. anil says:

    i work in a govt college so if i join iit will my pf be safe or my pension will be safe or the new pension scheme will be applied. is there anyway of changing the college without risking pf.

  41. Naresh says:

    In case there is a dispute regarding the applicability of the Act or the quantum of money to be deducted etc.

    Is there any web site to write a complaint against the organization?

    Is there any address (region wise) to write a complaint against the organization?

  42. vijay kukmar pathania says:

    we are the employees in a school under a department which is run six other school but in our single school we are less than 20 (17) what is the rule for us regarding EPF. in our department 1 school get this EPF facility from 1990.
    our question is what is procedure for us?

  43. kanul wadhwa says:

    I worked with L&T Mumbai for about 3 years and then left he organisation.My employer forwarded Form 10 C to the concerned RPFCfor withdrawal of EPS accumulations.RPFC has replied that withdrawal of EPS is not allowed as per new guidelines. Member has to either apply for scheme certificate or can transfer to new employer account. My case is that I am not joining any other employer. My service is less than 5 years. Can anybody apprise me the latest rule position. I want to withdraw the EPS accumulations and I have not to join any other employer.

  44. Joyal says:

    Good Evening Sir/Madam,
    I demoved my last organization in May 2012 and came over Afghanistan, Can I submit Form No.19 through Email to refund my PF amount? Is it Possible? OR How much long time I can keep this PF amount without withdrawing after leaving the job? Can please answer me?

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