Hi We are opening new company. Where I can open PF account for our employees. What is the procedure for it. And explain me difference between CPF and PPF Munali
From India, Mumbai
2From India, Mumbai
Dear Munali,
CPF means - Contributory Provident Fund which is Known as EPF under the Provisions of EPF Act - 1952. If your organization having 20 or more employees working on any day of the preceding twelve months of a calender year and also notify in schedule of employment under the provisions of the said Act which it is mandatory. If the No.of persons are below 20 you can cover the employees as voluntarily under the said provisions. The employer has submitted Form -1 i.e. Registration Form along with relevant documents and also details of Principle employer particulars in RPFO Office of your area concerned to obtain code Number to cover your employees. After Verification of Records by Enforcement Officer, Pf code Number Allotted to your organization to implement the scheme and comply the same accordingly under statutory provisions laid down as per EPF Act - 1952 Rules.
PPF means Public Provident Fund opted by the employee on his own accord for future savings in long term. PPF Account to be opened in any Branch of SBI or Post Office with a minimum amount of not less than Rs.500/-. Maximum amount to be deposited by any employee up to Rs.1,00,000 with a Interest Rate of 8.6% per anum for a period of 15 years.
Regards
V R RAO PULIPAKA
09666051720.
From India, Bangalore
CPF means - Contributory Provident Fund which is Known as EPF under the Provisions of EPF Act - 1952. If your organization having 20 or more employees working on any day of the preceding twelve months of a calender year and also notify in schedule of employment under the provisions of the said Act which it is mandatory. If the No.of persons are below 20 you can cover the employees as voluntarily under the said provisions. The employer has submitted Form -1 i.e. Registration Form along with relevant documents and also details of Principle employer particulars in RPFO Office of your area concerned to obtain code Number to cover your employees. After Verification of Records by Enforcement Officer, Pf code Number Allotted to your organization to implement the scheme and comply the same accordingly under statutory provisions laid down as per EPF Act - 1952 Rules.
PPF means Public Provident Fund opted by the employee on his own accord for future savings in long term. PPF Account to be opened in any Branch of SBI or Post Office with a minimum amount of not less than Rs.500/-. Maximum amount to be deposited by any employee up to Rs.1,00,000 with a Interest Rate of 8.6% per anum for a period of 15 years.
Regards
V R RAO PULIPAKA
09666051720.
From India, Bangalore
Dear Munali
In Government for their employees, PF will be deducte and their will not be any contribution from the employer (Government) side. That's the reason they are paid with Pension. But in Private company they will not give any pension to the ex employees. That's the reason the Contributory PF was introduced. 12% from Employee PF 3.67% from Employer PF and 8.33% from Employer Pension Scheme (Total 24%) and in addition the employer has to pay 1.1% as Administrative charges for PF, 0.5% as EDLI, and 0.01% as EDLI Charges (Total 25.61%).
8.33% Remitted in Pension Scheme will be accumulated and 3.16% will be given by the Government for the Pension scheme for those retiring on 58 years. With that amount the Corpus Fund will be created by the Government (EPFO) and the Pension will be given to the retired private company ex-employees.
The PPF is as like Savings Account with 8.5% Interest annually accumulated and Minimum of Rs. 500 and Maximum of Rs.100000/- per annum you can deposit voluntarily either in SBI or in Post Office. You can get the money only after 55 years and in case of any emergency you can get only loan from this account.
Procedures are already explained by Mr. VR Rao Pulipaka, which you can follow.
Wish you all the best
From India, Kumbakonam
In Government for their employees, PF will be deducte and their will not be any contribution from the employer (Government) side. That's the reason they are paid with Pension. But in Private company they will not give any pension to the ex employees. That's the reason the Contributory PF was introduced. 12% from Employee PF 3.67% from Employer PF and 8.33% from Employer Pension Scheme (Total 24%) and in addition the employer has to pay 1.1% as Administrative charges for PF, 0.5% as EDLI, and 0.01% as EDLI Charges (Total 25.61%).
8.33% Remitted in Pension Scheme will be accumulated and 3.16% will be given by the Government for the Pension scheme for those retiring on 58 years. With that amount the Corpus Fund will be created by the Government (EPFO) and the Pension will be given to the retired private company ex-employees.
The PPF is as like Savings Account with 8.5% Interest annually accumulated and Minimum of Rs. 500 and Maximum of Rs.100000/- per annum you can deposit voluntarily either in SBI or in Post Office. You can get the money only after 55 years and in case of any emergency you can get only loan from this account.
Procedures are already explained by Mr. VR Rao Pulipaka, which you can follow.
Wish you all the best
From India, Kumbakonam
Hi
Thanks Mr. Rao and Bhaskar for great explaination.
Our organisation started before 2 months ago. And we have only 10 employees.
We hired some senior employee and they already used to pay PF and Gratuity from their salary.
Now our organisation is not under any scheme. So How I can align with their PF and Gratuity.
Thanks again
Regard
Munali Bansal
From India, Mumbai
Thanks Mr. Rao and Bhaskar for great explaination.
Our organisation started before 2 months ago. And we have only 10 employees.
We hired some senior employee and they already used to pay PF and Gratuity from their salary.
Now our organisation is not under any scheme. So How I can align with their PF and Gratuity.
Thanks again
Regard
Munali Bansal
From India, Mumbai
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PPF Interest.pdf