Dear Senior Members Good Afternoon to all, I want the full information regarding the Employee provident fund scheme in easy language to have an deep idea regarding that... Thanks and Regards
From India, Mumbai
5From India, Mumbai
1.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.
2.Is it Compulsory for the all the employees to contribute to the Provident Fund ?
Ans.Employees drawing basic salary up to RS.6500/- have to compulsory contribute to the provident fund & employees drawing above 6501/-have an option to become member of the Provident Fund.
3.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.
4.What is the contribution percentage to the Provident fund and Pension Scheme ?
Ans.Employee full contribution will go to the PF fund, from Employer\'s 12%, 8.33% will go to pension fund (subject to max amount 541 Rs) and remaining amount will go to PF fund.
5.Do we get any interest on the amount which i
From India, New Delhi
Ans.The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.
2.Is it Compulsory for the all the employees to contribute to the Provident Fund ?
Ans.Employees drawing basic salary up to RS.6500/- have to compulsory contribute to the provident fund & employees drawing above 6501/-have an option to become member of the Provident Fund.
3.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.
4.What is the contribution percentage to the Provident fund and Pension Scheme ?
Ans.Employee full contribution will go to the PF fund, from Employer\'s 12%, 8.33% will go to pension fund (subject to max amount 541 Rs) and remaining amount will go to PF fund.
5.Do we get any interest on the amount which i
From India, New Delhi
employees provident fund scheme has been created by the Central Government for providing social security to the individual employee and his family members PF scheme provides following benefits to the employee and his family members.
1. savings- monthly contributions to the PF fund accumulates regularly which in turns yields an huge amount of savings at the time of retirement.
2. Pension- after retirement employee is entitle for getting monthly pension.
3. Family pension - In case of death of employee , his family members such as spouse , children are entitle for getting pension.
4. Insurance- In case of death of employee his family member is entitle for getting insurance claim from the PF orgnisation under the EDLI scheme.
5. Income tax benefit- Employee is entitle for getting exemption of income tax for his own contribution to PF fund.
every employee should contribute to the PF fund and every employer should arrange and facilitate his empoyees to obtain above benefits from PF Organisation.
From India, Mumbai
1. savings- monthly contributions to the PF fund accumulates regularly which in turns yields an huge amount of savings at the time of retirement.
2. Pension- after retirement employee is entitle for getting monthly pension.
3. Family pension - In case of death of employee , his family members such as spouse , children are entitle for getting pension.
4. Insurance- In case of death of employee his family member is entitle for getting insurance claim from the PF orgnisation under the EDLI scheme.
5. Income tax benefit- Employee is entitle for getting exemption of income tax for his own contribution to PF fund.
every employee should contribute to the PF fund and every employer should arrange and facilitate his empoyees to obtain above benefits from PF Organisation.
From India, Mumbai
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc