Employee's Provident Fund (EPF) is a retirement benefit scheme that's available to all salaried employees.
Employee's Provident Fund (EPF) is a retirement benefit scheme that's available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO.
It's a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement.
When you start working, you and your employer both contribute 12% of your basic salary (plus dearness allowances, if any) into your EPF account . The entire 12% of your contribution goes into your EPF account along with 3.67% (out of 12%) from your employer, while the balance 8.33% from your employer's side is diverted to your EPS (Employee's Pension Scheme) .
EPF is active every time you receive your pay. If you're changing jobs, it's important to also update your EPF information with your new company, giving them your EPF number so that they can continue the contribution.
PF
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| For Partnership Firms / LLP / Company |
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| Society/Trust |
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| Common Documents Required for All Entities |
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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.
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.
No, Where the establishment is closed down and only a few employees are employed for keeping a watch over the assets and properties of the establishments, the Act would not be applicable.
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.
The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.
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.
Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.
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.
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
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.
For an employee to become eligible for Pension fund, he has to complete membership of the Fund for 10 Years.
CIN - U74999KA2018PTC110598
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