Dear Seniors, Is that correct to deduct both employee & employer contributions for PF from employee salary?? Please suggest on the same,which is very important for me.. Thanks & Regards, Swetha
From India, Delhi
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4From India, Delhi
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Employee PF contribution will be deducted from the employee's salary, whereas if the employer contributes, it will be deducted from the employee's salary and will form a part of the CTC. It is compulsory to contribute to EDLI.
From India, Bangalore
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From India, Bangalore
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In CTC regime, this deduction is acceptable and it is widely followed across many sectors. Pon
From India, Lucknow
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From India, Lucknow
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Dear Sonia, Priya, Pon,
Thanks a lot for the replies.
Can you please clarify whether the employee will be getting both 12% of the employee contribution and 12% of the employer contribution at the time of resignation?
What is the case if an employee resigns before completion of 6 months of experience?
What is the case if an employee resigns after completion of 6 months of experience?
As I know, an employee can't apply for PF withdrawal before completion of 6 months of experience. Is this correct?
Please suggest.
Thanks and Regards,
Swetha
From India, Delhi
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Thanks a lot for the replies.
Can you please clarify whether the employee will be getting both 12% of the employee contribution and 12% of the employer contribution at the time of resignation?
What is the case if an employee resigns before completion of 6 months of experience?
What is the case if an employee resigns after completion of 6 months of experience?
As I know, an employee can't apply for PF withdrawal before completion of 6 months of experience. Is this correct?
Please suggest.
Thanks and Regards,
Swetha
From India, Delhi
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Swetha,
When an employee separates from an organization, he can file a withdrawal of PF after 60 days from the day of relief. It doesn't matter whatsoever the service period he/she has served. Form 19 & 10C have to be filed; one is for the PF fund & the other is for the pension fund. The amount comes in two splits respectively. (The employer has already deducted 12% from the employee & after adding their contribution of the same, they deposited it in the PF authority.)
If you need some more data & if you can't share the actual question over here, you can please email me or call me.
From India, Pune
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When an employee separates from an organization, he can file a withdrawal of PF after 60 days from the day of relief. It doesn't matter whatsoever the service period he/she has served. Form 19 & 10C have to be filed; one is for the PF fund & the other is for the pension fund. The amount comes in two splits respectively. (The employer has already deducted 12% from the employee & after adding their contribution of the same, they deposited it in the PF authority.)
If you need some more data & if you can't share the actual question over here, you can please email me or call me.
From India, Pune
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Swetha,
If an employee leaves before 6 months, he/she forfeits the FPF component, i.e., 8.33%. However, he/she will get the PF component, i.e., 12% deduction + 3.67% contribution, along with interest. The application has to be made after 60 days. Therefore, the best way is to transfer the PF to the new employer code.
Nitin Tadvalkar
From India, Pune
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If an employee leaves before 6 months, he/she forfeits the FPF component, i.e., 8.33%. However, he/she will get the PF component, i.e., 12% deduction + 3.67% contribution, along with interest. The application has to be made after 60 days. Therefore, the best way is to transfer the PF to the new employer code.
Nitin Tadvalkar
From India, Pune
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Dear All,
Thank you all for sharing valuable information.
I have received clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary.
Thanks and Regards,
Swetha
From India, Delhi
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Thank you all for sharing valuable information.
I have received clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary.
Thanks and Regards,
Swetha
From India, Delhi
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Dear Swetha,
As per my knowledge, an employee has to complete more than 6 months of service to be eligible for withdrawal benefits from the FPF (Pension) account. In other words, the employee may withdraw the PF amount; however, their claim for the Pension account may be rejected if the service period is less than 6 months. In such a case, the employee may transfer the pension account to the new PF/FPF account allocated to them in their new appointment.
The statement you made in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing.
When it comes to the word 'Salary,' it is mandatory to deduct the employee's PF contribution from their earnings, and the employer must deposit their contribution along with administrative and EDLI charges. In other words, from the employee's salary, it can be understood that both parties are responsible for contributing towards PF.
These days, a term like 'CTC' includes the employer's PF contributions in the cost to the company for that employee. It is simply a matter of understanding for both the employee and the employer.
Regards,
Atul
From India, Sholapur
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As per my knowledge, an employee has to complete more than 6 months of service to be eligible for withdrawal benefits from the FPF (Pension) account. In other words, the employee may withdraw the PF amount; however, their claim for the Pension account may be rejected if the service period is less than 6 months. In such a case, the employee may transfer the pension account to the new PF/FPF account allocated to them in their new appointment.
The statement you made in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing.
When it comes to the word 'Salary,' it is mandatory to deduct the employee's PF contribution from their earnings, and the employer must deposit their contribution along with administrative and EDLI charges. In other words, from the employee's salary, it can be understood that both parties are responsible for contributing towards PF.
These days, a term like 'CTC' includes the employer's PF contributions in the cost to the company for that employee. It is simply a matter of understanding for both the employee and the employer.
Regards,
Atul
From India, Sholapur
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Dear Atul,
Is it illegal to deduct both employee and employer contributions (PF) from an employee's gross salary, i.e., from their monthly salary? I believe it is illegal, but some are saying that it is legal. It's just confusing! Please provide the correct answer.
Thanks and Regards,
Swetha
From India, Delhi
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Is it illegal to deduct both employee and employer contributions (PF) from an employee's gross salary, i.e., from their monthly salary? I believe it is illegal, but some are saying that it is legal. It's just confusing! Please provide the correct answer.
Thanks and Regards,
Swetha
From India, Delhi
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Hi,
It is indeed illegal if an employer deducts both the employer's and employees' contributions from the employee's salary. If an employer fails to deduct an employee's subscription to their PF account, it is the employer's responsibility to cover both contributions, including accrued interest. There is no provision to later recover the employee's subscription from the employee, but the establishment should cover both with interest.
The law in this regard is very clear. There may be confusion with the CTC regime, where some may point out that the CTC (Cost to Company) is not entirely payable to the employee. It is essential to understand the terms and conditions of the appointment clearly.
Regards,
Kumar S.
From India, Bangalore
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It is indeed illegal if an employer deducts both the employer's and employees' contributions from the employee's salary. If an employer fails to deduct an employee's subscription to their PF account, it is the employer's responsibility to cover both contributions, including accrued interest. There is no provision to later recover the employee's subscription from the employee, but the establishment should cover both with interest.
The law in this regard is very clear. There may be confusion with the CTC regime, where some may point out that the CTC (Cost to Company) is not entirely payable to the employee. It is essential to understand the terms and conditions of the appointment clearly.
Regards,
Kumar S.
From India, Bangalore
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Dear Swetha,
It all depends on the employer to deduct both sides of PF from the employee's side or the employer's side. Many companies deduct employee PF from their CTC, and many companies (we can say a good one) deposit both shares from the company's side and give benefits to their employees.
If an employee does not work for six months in a firm, they will only get the PF amount, not the pension amount, which is 8.33%. If they complete six months, they will get the complete amount. After 60 days of resignation, they can submit Form 19 & 10C and withdraw their PF.
Thank you,
Monu Tyagi
From India, Ambala
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It all depends on the employer to deduct both sides of PF from the employee's side or the employer's side. Many companies deduct employee PF from their CTC, and many companies (we can say a good one) deposit both shares from the company's side and give benefits to their employees.
If an employee does not work for six months in a firm, they will only get the PF amount, not the pension amount, which is 8.33%. If they complete six months, they will get the complete amount. After 60 days of resignation, they can submit Form 19 & 10C and withdraw their PF.
Thank you,
Monu Tyagi
From India, Ambala
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I am not getting into the debate of whether it is legal or illegal. In CTC concept, showing the PF contribution by the employer is actually meant for highlighting to the employee just to show the cost of engaging and the cost incurred by the employer. It may be incorrect to say as PF deduction but PF contribution which the employer is incurring on the employee. CTC has got no guidelines and it is left to the companies to include the components which are directly or indirectly beneficial to the employees including the retiral benefits. Some companies include PF Contribution, some even include Gratuity payable, some include the leave encashments, etc. No standard practice. CTC regime is beyond the limit of min. wages as I understand, probably, just to inflate the costs and present an attractive figure to the employee.
Pon
From India, Lucknow
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Pon
From India, Lucknow
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Hi Pon,
Yes, what you have stated is absolutely correct. Nowadays, every employer is relying on the concept of CTC. In our Indian companies, there are no restrictions. So, that is the reason why these companies are including attendance bonus, bonus, gratuity, mediclaim, leave encashment, superannuation, etc. The company's motto is to offer the employee as much as they can.
Also, they try to explain that they have exceptionally better beneficial policies. But on the other hand, the employee does not understand that each and every benefit is deducted from his CTC. This sort of mindset has to change.
Regards, Vinay Kumar
From India, Hyderabad
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Yes, what you have stated is absolutely correct. Nowadays, every employer is relying on the concept of CTC. In our Indian companies, there are no restrictions. So, that is the reason why these companies are including attendance bonus, bonus, gratuity, mediclaim, leave encashment, superannuation, etc. The company's motto is to offer the employee as much as they can.
Also, they try to explain that they have exceptionally better beneficial policies. But on the other hand, the employee does not understand that each and every benefit is deducted from his CTC. This sort of mindset has to change.
Regards, Vinay Kumar
From India, Hyderabad
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Dear Friends,
It is my view that Indian Labour Law(s) doesn't recognize CTC. Every piece of Act/Law defines what is Pay, salary, wages, emoluments, and what should/shouldn't be included for every application of PF/ESI/Gratuity/Pension, etc.
I really wonder how any CTC-following employer would satisfy the requirement. I am also interested to know from such companies how their payrolls are drawn with CTC in the back of their mind. Nevertheless, they should necessarily follow a minimum emolument in the form of Basic, DA, CCA, HRA, Conveyance Allowance, Shift Allowance, etc. In short, either they should first fix a lump sum as total remuneration and break it into these groups or first arrive at the breakup and then consolidate to the CTC. In which case, they know the breakup and if so applying them for the purposes of PF etc. shouldn't pose any problem. Am I correct?
It is the duty of every employer to show very clearly what amount is recovered from an employee and what amount is contributed by the Estt. and on what amounts. No one could escape this requirement for the simple reason that there are minimum and maximum amounts which are interest-bearing, and ledger account of every employee should be supplied to the concerned showing monthly breakup of subs, contribution, interest. If these breakups aren't available, how could one regulate Loans, withdrawals, final settlements/transfers/forfeiture, etc.? Am I correct?
Kumar S.
From India, Bangalore
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It is my view that Indian Labour Law(s) doesn't recognize CTC. Every piece of Act/Law defines what is Pay, salary, wages, emoluments, and what should/shouldn't be included for every application of PF/ESI/Gratuity/Pension, etc.
I really wonder how any CTC-following employer would satisfy the requirement. I am also interested to know from such companies how their payrolls are drawn with CTC in the back of their mind. Nevertheless, they should necessarily follow a minimum emolument in the form of Basic, DA, CCA, HRA, Conveyance Allowance, Shift Allowance, etc. In short, either they should first fix a lump sum as total remuneration and break it into these groups or first arrive at the breakup and then consolidate to the CTC. In which case, they know the breakup and if so applying them for the purposes of PF etc. shouldn't pose any problem. Am I correct?
It is the duty of every employer to show very clearly what amount is recovered from an employee and what amount is contributed by the Estt. and on what amounts. No one could escape this requirement for the simple reason that there are minimum and maximum amounts which are interest-bearing, and ledger account of every employee should be supplied to the concerned showing monthly breakup of subs, contribution, interest. If these breakups aren't available, how could one regulate Loans, withdrawals, final settlements/transfers/forfeiture, etc.? Am I correct?
Kumar S.
From India, Bangalore
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Dear Mr. Atul,
You are absolutely right in all your observations. Employees have to be well aware of the components of CTC. In case the breakdown of CTC given along with the offer letter/appointment letter states that the employer's contribution to PF is part of CTC (as it invariably will state), then the employer will deduct contributions towards PF and other obligatory contributions, and the balance will be the take-home pay.
Regards,
Col. Suresh Rathi
From India, Delhi
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You are absolutely right in all your observations. Employees have to be well aware of the components of CTC. In case the breakdown of CTC given along with the offer letter/appointment letter states that the employer's contribution to PF is part of CTC (as it invariably will state), then the employer will deduct contributions towards PF and other obligatory contributions, and the balance will be the take-home pay.
Regards,
Col. Suresh Rathi
From India, Delhi
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Dear Shweta,
For a while, just forget about the CTC concept.
Now, try to understand what the PF Act says about the contributions.
It is absolutely illegal if the employer is deducting both contributions from the monthly gross salary of the employee. It shows that the employer is denying to pay his contributions, and it is a gross default on his side.
So, it is crystal clear that if there is payable gross salary of any employee concerns, whatever mode of payment may be, either monthly/daily, the employee is required to pay his contributions towards PF+FPF, and the employer is also bound to pay his share without fail, intentionally or unintentionally.
If in such a case, the CTC concept applies, the employer just adds his share against PF into the payable amount to the employee for calculation purposes only; however, it cannot be treated as both contributions to be deducted from the employee's gross salary itself.
CTC is a self-explanatory term defined by the employer and does not have any legal confirmations. I think it has cleared your doubts now.
Regards,
Atul S Malve
From India, Sholapur
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For a while, just forget about the CTC concept.
Now, try to understand what the PF Act says about the contributions.
It is absolutely illegal if the employer is deducting both contributions from the monthly gross salary of the employee. It shows that the employer is denying to pay his contributions, and it is a gross default on his side.
So, it is crystal clear that if there is payable gross salary of any employee concerns, whatever mode of payment may be, either monthly/daily, the employee is required to pay his contributions towards PF+FPF, and the employer is also bound to pay his share without fail, intentionally or unintentionally.
If in such a case, the CTC concept applies, the employer just adds his share against PF into the payable amount to the employee for calculation purposes only; however, it cannot be treated as both contributions to be deducted from the employee's gross salary itself.
CTC is a self-explanatory term defined by the employer and does not have any legal confirmations. I think it has cleared your doubts now.
Regards,
Atul S Malve
From India, Sholapur
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Dear Swetha,
Referring to your query, the contributions for employees and employers shall not be deducted from the employee's salary by the employer. In the CTC pattern, the employer can show the part of the employer's contribution.
Regards,
V R RAO PULIPAKA
From India, Bangalore
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Referring to your query, the contributions for employees and employers shall not be deducted from the employee's salary by the employer. In the CTC pattern, the employer can show the part of the employer's contribution.
Regards,
V R RAO PULIPAKA
From India, Bangalore
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Dear Swetha,
I agree with Atul. The statement you are making in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing. Basically, if PF is deducted from the employee (i.e., 12%), the employer contributes the same ratio along with administrative and EDLI charges.
Just to add, it is also optional to deduct PF. So, if any employee does not want to contribute to PF, we as HR must consider the same.
Regards, Tanuja
From India, Pune
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I agree with Atul. The statement you are making in your last post, "I got a clarification that it is legal to deduct both employee and employer contributions for PF from the employee's salary," is a little confusing. Basically, if PF is deducted from the employee (i.e., 12%), the employer contributes the same ratio along with administrative and EDLI charges.
Just to add, it is also optional to deduct PF. So, if any employee does not want to contribute to PF, we as HR must consider the same.
Regards, Tanuja
From India, Pune
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It is right that employer cotribution of PF to duduct with employee salary if employer show your CTC.Because in ctc we add all amount
From India, Delhi
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From India, Delhi
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Dear Swetha,
Regarding the deduction of the employer's share from an employee's salary, the practice is considered a malpractice both morally and legally. I agree with the statements made by Nitin and Atul Malve. If an employee is receiving a fair salary that allows the employer to deduct the employer's share as part of the so-called CTC, then it can be considered.
Regards,
Kiran Kale
From India, Kolhapur
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Regarding the deduction of the employer's share from an employee's salary, the practice is considered a malpractice both morally and legally. I agree with the statements made by Nitin and Atul Malve. If an employee is receiving a fair salary that allows the employer to deduct the employer's share as part of the so-called CTC, then it can be considered.
Regards,
Kiran Kale
From India, Kolhapur
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as per my knowledge an employee should contribute 1.75% and the employer must contribute 3.75% for provident fund, while the interest rate for both is 12%. Is that correct, m jst confuse......
From India, Gurgaon
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From India, Gurgaon
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Dear All,
I am facing the same question:
1) If the company is deducting its contribution of PF from employees' salary,
2) and in employees' CTC, the company has included the company's share of PF contribution as a part of it,
3) and then the company is deducting both employers' and employees' contributions from employees' salary.
I just want to know if it is legal to do so. Please help.
From India, Pune
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I am facing the same question:
1) If the company is deducting its contribution of PF from employees' salary,
2) and in employees' CTC, the company has included the company's share of PF contribution as a part of it,
3) and then the company is deducting both employers' and employees' contributions from employees' salary.
I just want to know if it is legal to do so. Please help.
From India, Pune
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Dear Seniors,
I joined an organization on 10th Feb 2011 and resigned from that company on 25th May 2011. My Basic Salary was $5000, so in Feb 2011, my PF deduction amount was $407. In March, it was $600, in April $600, and in May $600. When I opted for PF closure, the amount that I received was $3048. I would like to confirm if this is the correct amount I should have received.
Please help.
Thanks & Regards,
Madhu
From India
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I joined an organization on 10th Feb 2011 and resigned from that company on 25th May 2011. My Basic Salary was $5000, so in Feb 2011, my PF deduction amount was $407. In March, it was $600, in April $600, and in May $600. When I opted for PF closure, the amount that I received was $3048. I would like to confirm if this is the correct amount I should have received.
Please help.
Thanks & Regards,
Madhu
From India
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Dear Aditag,
1) If the company is deducting its contribution of PF from employees' salary, it cannot be done. Employees contribute 12%, and the employer contributes 12%.
2) In employees' CTC, the company has included the company's share of PF contribution as a part of it. Yes, it is a part of CTC. The company can include all the components like employer's ESI and PF share, bonus, fixed incentives, gratuity (Today, many companies are including the gratuity for the year), medical reimbursement, mediclaim, GTI, LTA, etc., in the CTC of an employee.
3) Then the company is deducting both employer's and employee's contributions from employees' salary. The company cannot deduct from the employee for the employer's contribution; it is illegal.
From India, Mumbai
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1) If the company is deducting its contribution of PF from employees' salary, it cannot be done. Employees contribute 12%, and the employer contributes 12%.
2) In employees' CTC, the company has included the company's share of PF contribution as a part of it. Yes, it is a part of CTC. The company can include all the components like employer's ESI and PF share, bonus, fixed incentives, gratuity (Today, many companies are including the gratuity for the year), medical reimbursement, mediclaim, GTI, LTA, etc., in the CTC of an employee.
3) Then the company is deducting both employer's and employee's contributions from employees' salary. The company cannot deduct from the employee for the employer's contribution; it is illegal.
From India, Mumbai
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Hi Everyone,
Can anybody tell me how to check the PF balance amount on the EPFO site? I have already checked but have not been successful. Which number do we need to provide in the 'Employee PF Account No.' field? My account number is AP/HYD/56462/208.
Thanks & Regards,
Kumari
From India, Hyderabad
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Can anybody tell me how to check the PF balance amount on the EPFO site? I have already checked but have not been successful. Which number do we need to provide in the 'Employee PF Account No.' field? My account number is AP/HYD/56462/208.
Thanks & Regards,
Kumari
From India, Hyderabad
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Dear madhu, It is correct. your contribution is 2207 Employer contribution is 675 EPF contribution is 2882. remaining amount is the interest incurred. approx Rs. 166.
From India, Mumbai
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From India, Mumbai
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Dear Swetha,
Hopes this may clarifies...
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/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund .
Q3) Is it beneficial for employees who draw salary above Rs 6501/- 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 4200 and after some period of time his basic salary increases above Rs 6501/-, 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 6501/- 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 6501/- but after some period of time their basic increases above Rs 6501/- 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. 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.
From United States, Palo Alto
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Hopes this may clarifies...
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/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund .
Q3) Is it beneficial for employees who draw salary above Rs 6501/- 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 4200 and after some period of time his basic salary increases above Rs 6501/-, 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 6501/- 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 6501/- but after some period of time their basic increases above Rs 6501/- 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. 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.
From United States, Palo Alto
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Dear Kumari,
Please provide your exact name and initial as it appears on your EPF slip. For example, if the name is Pawan Kumar A, it can be verified in the following formats:
- PAWAN KUMAR A
- A PAWAN KUMAR
- A PAWANKUMAR
- PAWANKUMAR A
- PAWAN KUMAR
- PAWANKUMAR
Kindly ensure the accuracy of the information provided. Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Please provide your exact name and initial as it appears on your EPF slip. For example, if the name is Pawan Kumar A, it can be verified in the following formats:
- PAWAN KUMAR A
- A PAWAN KUMAR
- A PAWANKUMAR
- PAWANKUMAR A
- PAWAN KUMAR
- PAWANKUMAR
Kindly ensure the accuracy of the information provided. Thank you.
From India, Mumbai
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Employer-PF-res trict to wages of Rs 6500.pdf