Know about PF A provident fund is created with a purpose of providing financial security and stability to elderlypeople. Generally one contributes in these funds when one starts as employee, the contributions are made on a regular basis (monthly in most cases). It’s purpose is to help employees save afraction of their salary every month, to be used inan event that the employee is temporarily or no longer fit to work or at retirement. The investments made by a number of people / employees arepooled together and invested by a trust.Employee Provident Fund (EPF)is implemented by the Employees Provident Fund Organisation (EPFO) of India. An establishment with20 or more workers working in any one ofthe 180+ industries (given here) should register withEPFO . Typically 12% of the Basic, DA,and cash value of food allowances has to be contributed to the EPF account. EPFO is astatutorybody of the Indian Government under Labour and Employment Ministry. It is one of the largest social security organisations in the world in termsof members and volume of financialtransactions undertaken. P.F. Deducted on Basic + D.A + Cash value of Food Allowance @ 12%. (Read: Draft notice on including allowance for PF contribution) It is a statutory deduction. D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees. Company pays P.F on either actual basic or Capped Basic. Capped basic decided depend on Company rules it is not restricted. It’s applicable those employee basic exceeds Rs. 6500/- only. Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund. Employer also needs to pay additional charges on every month over and above PF Company Contribution. The break up is 1.1% P.F Administration Charges, 0.5 % on Employee Deposit Linked Insurance (E.D. L.I) and 0.01% E.D.L.I Administration Charges. The company needs to file Monthly Returns and Annual Returns. Company have to submit every moth duly paid P.F Challan, Form 12A, Form 5 (additions) and Form 10 (deletions) and Nomination from 2 (newly joined employee details). In annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payment details. The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joinee to the scheme along with the monthly report. P.F. Monthly payment due date is 15th (with grace up to 21st) and Annual Return due date is 30th April of every Year as per P.F authorities treated one year is from 1st March to 28th February. Any employee who wishes to transfer his old company’s PF balances He can transfer his PF Current A/C with using Form 13 signed by current employer (who he joined new company employer) and old employer to submit Form 3A to P.F office. Employee P.F Number will be change of every company.
Posted on: Mon, 29 Jul 2013 12:28:38 +0000
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