what is meant by provident fund? how to calculate the provident fund in a company? who are all eligible for provident fund? what are the forms used for providend fund?
From India, Delhi
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2From India, Delhi
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There are two types of Provident Fund
1. PPF - Public Provident Fund
2. EPF - Employee Provident Fund
In an organisation we are concerned with EPF
P.F (PROVIDENT FUND): -
1. PF is a statutory deduction. It is deducted on Basic + D.A + Cash value of Food Allowance @ 12%.
D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2. Company pays P.F on either actual or Capped Basic. Capped basic is decided on company rules and is not restricted. It is applicable to those employee’s whose basic exceeds Rs.6500/- only.
3. Employer and Employee Contribution are equal in P.F which is 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.
4. Every month Employer needs to pay additional charges over and above PF Company Contribution as per the below break up:
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D.L.I)
0.01% E.D.L.I Administration Charges.
In the case if the company has exemption in EDLI u/s 17(2a), company need not to pay employee deposit linked charges 0.5% and the admission charges are levied at 0.005% instead of 0.010%.
5. The company needs to file Monthly and Annual Returns.
Every month company has to submit duly paid P.F Challan.
Form 12A, Form-5 (additions) and Form 10 (deletions) and Nomination Form-2 (newly joined employee details).
In Annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payments.
6. The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joiner to the scheme along with the monthly report.
7. P.F. Monthly payment due date is 15th with a grace up to 21st. Monthly Returns due date is 25th of following month and Annual Return due date is 30th April.
As per P.F authorities, FY is from 1st March to 28th February.
8. Any employee who wishes to transfer his old company’s PF balances he can transfer his PF Current A/C using Form-13 signed by current employer (new company employer) and old employer has to submit Form 3A to P.F office.
Employee P.F Number will be changing in every company.
9. Any employee who wants to en-cash his P.F amount, he can draw the total amount with using of Form 10 C & Form 19. Form 10 C is E.P.F & Form 19 is F.P.F
10. Recently P.F Authorities introduced e-filling system, in these systems we have to submit every month P.F details in soft copy and hard copy, here no need to submit Annual Returns. (Currently this is not in use).
11. There are 5 number of accounts in PF Challan as shown below:
A/C#01 - PF contributed by Employers & Employee (12% & 3.67)
A/C#02 – PF administration charges (1.1%)
A/C#10 – Pension Fund Account (8.33%)
A/C#21 – EDLI charges (0.5%)
A/C#22 – EDLI Administration charges (0.10%)
visit this site - EPFO u will get all the necessary informations
From India, Mumbai
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1. PPF - Public Provident Fund
2. EPF - Employee Provident Fund
In an organisation we are concerned with EPF
P.F (PROVIDENT FUND): -
1. PF is a statutory deduction. It is deducted on Basic + D.A + Cash value of Food Allowance @ 12%.
D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2. Company pays P.F on either actual or Capped Basic. Capped basic is decided on company rules and is not restricted. It is applicable to those employee’s whose basic exceeds Rs.6500/- only.
3. Employer and Employee Contribution are equal in P.F which is 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.
4. Every month Employer needs to pay additional charges over and above PF Company Contribution as per the below break up:
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D.L.I)
0.01% E.D.L.I Administration Charges.
In the case if the company has exemption in EDLI u/s 17(2a), company need not to pay employee deposit linked charges 0.5% and the admission charges are levied at 0.005% instead of 0.010%.
5. The company needs to file Monthly and Annual Returns.
Every month company has to submit duly paid P.F Challan.
Form 12A, Form-5 (additions) and Form 10 (deletions) and Nomination Form-2 (newly joined employee details).
In Annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payments.
6. The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joiner to the scheme along with the monthly report.
7. P.F. Monthly payment due date is 15th with a grace up to 21st. Monthly Returns due date is 25th of following month and Annual Return due date is 30th April.
As per P.F authorities, FY is from 1st March to 28th February.
8. Any employee who wishes to transfer his old company’s PF balances he can transfer his PF Current A/C using Form-13 signed by current employer (new company employer) and old employer has to submit Form 3A to P.F office.
Employee P.F Number will be changing in every company.
9. Any employee who wants to en-cash his P.F amount, he can draw the total amount with using of Form 10 C & Form 19. Form 10 C is E.P.F & Form 19 is F.P.F
10. Recently P.F Authorities introduced e-filling system, in these systems we have to submit every month P.F details in soft copy and hard copy, here no need to submit Annual Returns. (Currently this is not in use).
11. There are 5 number of accounts in PF Challan as shown below:
A/C#01 - PF contributed by Employers & Employee (12% & 3.67)
A/C#02 – PF administration charges (1.1%)
A/C#10 – Pension Fund Account (8.33%)
A/C#21 – EDLI charges (0.5%)
A/C#22 – EDLI Administration charges (0.10%)
visit this site - EPFO u will get all the necessary informations
From India, Mumbai
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Hi , I have received Form 13 (for transferring his PF )from ex - employee duly signed and stamped by his current employer. What should be my action on this now Regards, MD
From India, Calcutta
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From India, Calcutta
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Gentleman,
You have elaborately explained. Good. But one thing is missing, statutorily you have to deduct at the rate of 12% and 12% management contribution. The ceiling is restricted to 6500. What about the employees getting more than 6500, and how the Act provides under the relevant section/regulations is not mentioned. Will you please update it.
Regards,
MRN. Murthy
From India, Bangalore
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You have elaborately explained. Good. But one thing is missing, statutorily you have to deduct at the rate of 12% and 12% management contribution. The ceiling is restricted to 6500. What about the employees getting more than 6500, and how the Act provides under the relevant section/regulations is not mentioned. Will you please update it.
Regards,
MRN. Murthy
From India, Bangalore
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I am taking care of PF contributions for 300 employees who are casual laborers. They are unstable in work - they work for one month and then go on leave the next month. During their leave, they cannot make contributions for that month. I need assistance in carrying forward their accounts for the next month without deletion.
From India, Bangalore
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From India, Bangalore
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Mr.Yaasin, you have very clearly and simply explained EPF Scheme which is really helpful to understand basics of EPF Scheme Mitesh Verma
From India, Ahmedabad
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From India, Ahmedabad
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Please guide me on this:
My company offers CTC which includes deductions of PF & ESIC from the employer's side as well as from the employees' monthly gross only.
So, will employer deductions also fluctuate according to employee gross or not?
From India, Thane
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My company offers CTC which includes deductions of PF & ESIC from the employer's side as well as from the employees' monthly gross only.
So, will employer deductions also fluctuate according to employee gross or not?
From India, Thane
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You should refer to this article: [Provident Fund - What you need to know](http://quikchex.in/provident-fund-india-guide/). It pretty much covers all the questions that you may have regarding Provident Fund.
Another pretty useful article is the one on how to register for PF. [Registering for Provident Fund - Step by Step guide](http://quikchex.in/provident-fund-registration-made-easy).
I've also attached the PDFs of these articles to this email.
From India, Mumbai
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Another pretty useful article is the one on how to register for PF. [Registering for Provident Fund - Step by Step guide](http://quikchex.in/provident-fund-registration-made-easy).
I've also attached the PDFs of these articles to this email.
From India, Mumbai
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Dear Sir/Madam,
One of our employees has crossed the age of 58 years and wishes to withdraw our final settlement of EPF and also commence the pension.
Could you please guide me on which form and documents are applicable for this scheme?
Thank you.
From India, Bhopal
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One of our employees has crossed the age of 58 years and wishes to withdraw our final settlement of EPF and also commence the pension.
Could you please guide me on which form and documents are applicable for this scheme?
Thank you.
From India, Bhopal
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Hi,
Please check the below URL: https://www.finacbooks.com/provident-fund-registration
From India, New Delhi
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Please check the below URL: https://www.finacbooks.com/provident-fund-registration
From India, New Delhi
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc