Hi All, I am applying for a generalist role and have experience only in recruitment. Could anyone help me what are HR policies procedures and programs if asked in the interview?
From India, Pune
4From India, Pune
Hi
For Junior positions, the criteria of HR questions are set on following basis:
a) Candidate past experience and exposure he/ she has in present or last company.- The questions will be asked around this point in order to understand the candidate seriousness and knowledge of his or her own area
b) The second criteria of interview questions are set basis on JD for which you are applying - i.e. you have to prepare thoroughly and expect the questions based on the vacant position JD. The objective is to judge the candidate and assess his potential to perform the job
c) About the company - Please ensure that you go through the company website and gather basis information abt it . it will certainly help you to crack the interview and impress the interviewer easily.
If you keep above three points in your mind and prepare around it , I am certain that you will shine with success in interview. Nevertheless, It will be difficult to set specific questions which every interviewer would ask. nevertheless, you may find lot of stuff on google itself. Remember, there is no shortcut to success but if you know the basis of interview methodology then I am sure it will help you to direct the right path to prepare.
Secondly, if you are switching your profile from Recruitment to HR generalist then it is suggested to prepare the concepts of basis HR , its functionalities and Industry HR best practices. The interviewer would certainly judge you on the basis of your theoretical knowledge and interest in current affairs of HR domain. therefore, keep yourself updated with the recent changes in industry and Labour laws for example, recent changes in maternity benefits, minimum wages, best practices of performance appraisals, technology in recruitment , social hiring etc. this will certain help you to impress the interviewer.
Trust the above suggestions would be helpful to you and enable to resolve your queries.
If you still have doubts, please don't hesitate to write back
Good Luck
Neelima
For Junior positions, the criteria of HR questions are set on following basis:
a) Candidate past experience and exposure he/ she has in present or last company.- The questions will be asked around this point in order to understand the candidate seriousness and knowledge of his or her own area
b) The second criteria of interview questions are set basis on JD for which you are applying - i.e. you have to prepare thoroughly and expect the questions based on the vacant position JD. The objective is to judge the candidate and assess his potential to perform the job
c) About the company - Please ensure that you go through the company website and gather basis information abt it . it will certainly help you to crack the interview and impress the interviewer easily.
If you keep above three points in your mind and prepare around it , I am certain that you will shine with success in interview. Nevertheless, It will be difficult to set specific questions which every interviewer would ask. nevertheless, you may find lot of stuff on google itself. Remember, there is no shortcut to success but if you know the basis of interview methodology then I am sure it will help you to direct the right path to prepare.
Secondly, if you are switching your profile from Recruitment to HR generalist then it is suggested to prepare the concepts of basis HR , its functionalities and Industry HR best practices. The interviewer would certainly judge you on the basis of your theoretical knowledge and interest in current affairs of HR domain. therefore, keep yourself updated with the recent changes in industry and Labour laws for example, recent changes in maternity benefits, minimum wages, best practices of performance appraisals, technology in recruitment , social hiring etc. this will certain help you to impress the interviewer.
Trust the above suggestions would be helpful to you and enable to resolve your queries.
If you still have doubts, please don't hesitate to write back
Good Luck
Neelima
1. What is the PF and why it is necessary?
Povident Fund (PF) is a benefit for the employees. Employee contributes 12% of his monthly basic earned salary to the PF account (A/c 1). The employer contributes 3.67% to the same account (A/c1) and 8.33% to A/c 10. It is a type of saving to the employee. The employee can avail loan from the PF account also. At the end the employee can close the PF account and withdraw the amount along with interest.
2. How PF is assigned to the Employee in Webpay?
Assigning PF in Webpay includes few steps. First of all we enable PF for the whole company, assign PF Limits and declare store PF accounts percentage in PF/ESI/PF configuration form at a company level. After this we enable the PF and Pension deduction in Employee master on Employee level. After this we have to make the paycode(Basic) as a part of PF Gross on which PF has to be deducted and then we assign the Basic paycode to the employee.
3. On which paycode PF is deducted?
On Basic and DA, PF is deducted
4. What are the necessary steps of checking if PF is not being deducted in Webpay?
If PF is not deducted of any employee then first of all we have to check the company level PF settings like PF enabled or not, PF Limit and PF accounts, after checking these, we will move to employee level setting like PF enabled or not, similarly PF limits and then we will check the paycode, which is part of PF gross; and whether that paycode is assigned to the employee or not.
5. What are the limits of PF?
At present there are two kinds of PF limits. One is 6500 which is statutory limit and other is Basic which is 999999999 (Max).
6. What are the accounts PF viz.,AC1, AC10 , AC2 ,AC21 , AC22? What are the percentages of these accounts?
AC1: 12% of earned basic wage of employee, 3.67% of Employer contribution are deposited and amount greater than pension limit of Rs.541 (over and above after calculating at 8.33%). AC10: 8.33% of earned basic wage or max 541 are deposited. AC2 (Admin Charge): 1.1 % of basic wage of employee. AC21 (Admin Charge): 0.5% of either Basic wage or Pension wage or EDLI wage. AC22 (Admin Charge): .01 % of either earned basic wage or pension wage or EDLI wage. Whether the admin charge (AC21 and AC22) would be deducted on basic or pension wage is opted from PF/ESI/PT configuration form. AC1 is EPF account, AC10 is Pension account and AC2 ,AC21 and AC22 are the admin accounts.
7. How PF is calculated and distributed among different accounts?
If employee's Basic is 20,000, employee's limit is 999999999 (Max) and payable days for the month of april is 15 days then payable Basic would be 20,000/30*15 that is 10,000. Since PF is deducted on earned wages, therefore, PF would be 10,000*12% that is 1200. Now AC10 is 8.33% of 10000 (Basic) that is 833. Since in AC10 we can not deposit more than 541 ,hence the remaining amount (833-541) that is 292 would be deposited to account AC1 along with Employees 12 % of Basic. This means in AC1 there would employer 3.67% and employees 12% of PF are deposited that is 1492 (292+1200) and in AC10 there would be 541 deposited. AC2 would be 1.1 % * 10,000 that is 110. AC21 and AC22 wages selected on BASIC and PENSION wages respectively in config form, then AC21 would be 10,000* .5/100 that is 50 and AC22 would be 6500*.01% that is .65 Rs (65 paise).
8. What is the Employee PF and Employer PF?
Employee contributes 12% of his monthly earned basic salary to the PF account and the employer also contribute 12% to the same account. Employee's PF is totally deposited to AC1(EPF) account and employeer PF is divided into two account viz. AC1 and AC10. Employer is also to bear the admin charges vi.z AC2, AC21, AC22.
9. What is the concept of CTC?
CTC means Cost To the Company, therefore employer's contribution is part of CTC. Employer's contribution is 12% and 1.61% toward admin charges.
10. Why is 13.61% (employer PF share) deducted from CTC to calculate supplementary allowance?
In CTC salary structure, employer PF contribution is part of CTC. Total contribution includes 12% of PF, 1.1 % of AC2 , 0.5% of AC21 and 0.01% of AC22. It becomes 13.61% in total.
Important Note: Earlier when the CTC concept was not prevalent, the limit was 6500 and employer PF contribution was not part of CTC.
11. What happens with PF if employee is kept on HOLD for any month?
There is an option in the PF/ESI/PT configuration form i.e. whether PF of employee whose salary is being withheld needs to be deposited or not. If the option is checked then PF would be deposited when the salary is withheld else it would be deposited in the month salary is released.
12. What are Basic Wages, Pension Wages and EDLI wages?
If the Limit is maximum (Actual earning) (999999999): In this case earned basic is Basic wage. If the Limit is 6500 and if basic is greater than 6500 then 6500 else Basic would be the Basic wage. Pension Wage: if Basic is greater than 6500 then 6500 else Basic would be pension wage but pension wage should be enabled. EDLI Wage: If Basic is greater than 6500 then 6500 else Basic would be EDLI wage.
13. What is prorate PF contribution (Calculate PF Proportionately)?
If Calculate PF Proportionately is enabled in PF/ESI/PT config form then PF would be deposited proportionately. Example if Basic is 10000, Limit is 6500 and payable days is 25 days and calender days of the month is 30 then PF would be = 6500*25/30=5417, Similary if flag is not checked then PF would be 6500 because earned basic(10000*25/30) is greater than 6500.
14. What is prorate Pension contribution?
If deduct pension wage prorate option is enabled in PF/ESI/PF config form then in AC10, pension would be deposited on the basis of payable days, remaining amount would be deposited in AC1.
15. What are Exempted and Non Exempted establishments?
If company is Non-Exempted then AC21 amount is deposited in Admin account and if company is Exempted then AC21 amount is deposited in Inspection account which is shown on PF challan form.
16. What happens when DEDUCT AC10 ON ARREAR on following case in Webpay?
a). ALL b). None c). New joinees
AC10 is Pension account. "All" here denotes that for all the employees the appropriate contribution would be deposited under AC10. "None" here denotes that for no employee contribution would be deposited under AC10. "New Joinees" denotes only for new joiners.
17. What is voluntary PF and under which account it is deposited?
If Employee wishes to contributes extra towards their PF fund then the amount contributed over and above PF contribution is known as Voluntary PF. It is deposited in AC1 of Employee EPF fund.
18. What happens when PF is negative?
If PF comes out to be negative then PF becomes zero,
19. How PF is deducted on arrear and is deposited with subsequent account to payable month?
For Example:- If Arrear PF is 240. In which AC1 is 73 and AC10 is 167 and payable month PF is 780 then AC1 would be (239+73) and AC10 would be (541+167) to the payable month PF accounts.
20. What happens with If Round PF Amount separately on Arrear PF Gross ?
If Round Arrear PF amount separately opton is enabled then arrear PF account and payable month PF account is rounded and stored in database and then added but if it is not enabled then Arrear PF is added to the Payable month PF amount and then rounded off. With this in some of the cases there might be a difference of One Rupee.
21. Why PF is deducted on Leave Encashment? (Now it is NOT, earlier it was)
Since Leave encashment is calculated on Basic, hence, PF was deducted on Leave encashment but now it is not deducted.
22. Whar do you mean by EPF subscriber, EPS subscriber and EDLI subscriber?
EPF subscriber: It is the count of employee's whose PF is payable in the given month. Payable amount might be zero. EPS subscriber: It is the count of employee's whose pension is calculated. ELDI Wages: It is same as EPF subscriber.
23. What are the Statutory forms of PF?
Statutory Forms of PF in Webpay are: PF form 5: New joinees details. Form 10: Left employee details. PF challan: PF challan deposited monthly. PF form 9: First time Establishment details. PF Eligibility Report: To count the month wise subscriber. PF 12 A: It is PF return. PF 3A: Whole year PF details. Form 6A: Yearly PF return, deposited at the end of March. DBF: It is deposited along with FORM 6A. PF FORM 2: EPF and EPS nominees details.
24. How subscriber is calculated on PF FORM 12A?
On PF 12 A total subscriber is not calculated as no. of count of given month. It is calculated as previous month total subscriber adds with given month new joiners and substracts with previous month left employee. For Example: If I have to calculate the May month subscriber than i will have to take April month total subscriber and it would be added with May month joiners and substract with April month left employee.
25. How can you check PF challan amount and subscriber if client raises a question on it?
Total Subscriber can be checked from Monthly PF statement details. Basic wage is the total basic amount of the subscriber. This amount should be equal to column 6 of the Monthly PF Statement. Employer share of contribution is the AC1 of the employer share. It should be equal to column 9 of Monthly PF Statement. Employee share of contribution is the total PF of the employee. It should be equal to column 7 of the Monthly PF Statement.
Interview questions
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.
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 India, Ludhiana
Povident Fund (PF) is a benefit for the employees. Employee contributes 12% of his monthly basic earned salary to the PF account (A/c 1). The employer contributes 3.67% to the same account (A/c1) and 8.33% to A/c 10. It is a type of saving to the employee. The employee can avail loan from the PF account also. At the end the employee can close the PF account and withdraw the amount along with interest.
2. How PF is assigned to the Employee in Webpay?
Assigning PF in Webpay includes few steps. First of all we enable PF for the whole company, assign PF Limits and declare store PF accounts percentage in PF/ESI/PF configuration form at a company level. After this we enable the PF and Pension deduction in Employee master on Employee level. After this we have to make the paycode(Basic) as a part of PF Gross on which PF has to be deducted and then we assign the Basic paycode to the employee.
3. On which paycode PF is deducted?
On Basic and DA, PF is deducted
4. What are the necessary steps of checking if PF is not being deducted in Webpay?
If PF is not deducted of any employee then first of all we have to check the company level PF settings like PF enabled or not, PF Limit and PF accounts, after checking these, we will move to employee level setting like PF enabled or not, similarly PF limits and then we will check the paycode, which is part of PF gross; and whether that paycode is assigned to the employee or not.
5. What are the limits of PF?
At present there are two kinds of PF limits. One is 6500 which is statutory limit and other is Basic which is 999999999 (Max).
6. What are the accounts PF viz.,AC1, AC10 , AC2 ,AC21 , AC22? What are the percentages of these accounts?
AC1: 12% of earned basic wage of employee, 3.67% of Employer contribution are deposited and amount greater than pension limit of Rs.541 (over and above after calculating at 8.33%). AC10: 8.33% of earned basic wage or max 541 are deposited. AC2 (Admin Charge): 1.1 % of basic wage of employee. AC21 (Admin Charge): 0.5% of either Basic wage or Pension wage or EDLI wage. AC22 (Admin Charge): .01 % of either earned basic wage or pension wage or EDLI wage. Whether the admin charge (AC21 and AC22) would be deducted on basic or pension wage is opted from PF/ESI/PT configuration form. AC1 is EPF account, AC10 is Pension account and AC2 ,AC21 and AC22 are the admin accounts.
7. How PF is calculated and distributed among different accounts?
If employee's Basic is 20,000, employee's limit is 999999999 (Max) and payable days for the month of april is 15 days then payable Basic would be 20,000/30*15 that is 10,000. Since PF is deducted on earned wages, therefore, PF would be 10,000*12% that is 1200. Now AC10 is 8.33% of 10000 (Basic) that is 833. Since in AC10 we can not deposit more than 541 ,hence the remaining amount (833-541) that is 292 would be deposited to account AC1 along with Employees 12 % of Basic. This means in AC1 there would employer 3.67% and employees 12% of PF are deposited that is 1492 (292+1200) and in AC10 there would be 541 deposited. AC2 would be 1.1 % * 10,000 that is 110. AC21 and AC22 wages selected on BASIC and PENSION wages respectively in config form, then AC21 would be 10,000* .5/100 that is 50 and AC22 would be 6500*.01% that is .65 Rs (65 paise).
8. What is the Employee PF and Employer PF?
Employee contributes 12% of his monthly earned basic salary to the PF account and the employer also contribute 12% to the same account. Employee's PF is totally deposited to AC1(EPF) account and employeer PF is divided into two account viz. AC1 and AC10. Employer is also to bear the admin charges vi.z AC2, AC21, AC22.
9. What is the concept of CTC?
CTC means Cost To the Company, therefore employer's contribution is part of CTC. Employer's contribution is 12% and 1.61% toward admin charges.
10. Why is 13.61% (employer PF share) deducted from CTC to calculate supplementary allowance?
In CTC salary structure, employer PF contribution is part of CTC. Total contribution includes 12% of PF, 1.1 % of AC2 , 0.5% of AC21 and 0.01% of AC22. It becomes 13.61% in total.
Important Note: Earlier when the CTC concept was not prevalent, the limit was 6500 and employer PF contribution was not part of CTC.
11. What happens with PF if employee is kept on HOLD for any month?
There is an option in the PF/ESI/PT configuration form i.e. whether PF of employee whose salary is being withheld needs to be deposited or not. If the option is checked then PF would be deposited when the salary is withheld else it would be deposited in the month salary is released.
12. What are Basic Wages, Pension Wages and EDLI wages?
If the Limit is maximum (Actual earning) (999999999): In this case earned basic is Basic wage. If the Limit is 6500 and if basic is greater than 6500 then 6500 else Basic would be the Basic wage. Pension Wage: if Basic is greater than 6500 then 6500 else Basic would be pension wage but pension wage should be enabled. EDLI Wage: If Basic is greater than 6500 then 6500 else Basic would be EDLI wage.
13. What is prorate PF contribution (Calculate PF Proportionately)?
If Calculate PF Proportionately is enabled in PF/ESI/PT config form then PF would be deposited proportionately. Example if Basic is 10000, Limit is 6500 and payable days is 25 days and calender days of the month is 30 then PF would be = 6500*25/30=5417, Similary if flag is not checked then PF would be 6500 because earned basic(10000*25/30) is greater than 6500.
14. What is prorate Pension contribution?
If deduct pension wage prorate option is enabled in PF/ESI/PF config form then in AC10, pension would be deposited on the basis of payable days, remaining amount would be deposited in AC1.
15. What are Exempted and Non Exempted establishments?
If company is Non-Exempted then AC21 amount is deposited in Admin account and if company is Exempted then AC21 amount is deposited in Inspection account which is shown on PF challan form.
16. What happens when DEDUCT AC10 ON ARREAR on following case in Webpay?
a). ALL b). None c). New joinees
AC10 is Pension account. "All" here denotes that for all the employees the appropriate contribution would be deposited under AC10. "None" here denotes that for no employee contribution would be deposited under AC10. "New Joinees" denotes only for new joiners.
17. What is voluntary PF and under which account it is deposited?
If Employee wishes to contributes extra towards their PF fund then the amount contributed over and above PF contribution is known as Voluntary PF. It is deposited in AC1 of Employee EPF fund.
18. What happens when PF is negative?
If PF comes out to be negative then PF becomes zero,
19. How PF is deducted on arrear and is deposited with subsequent account to payable month?
For Example:- If Arrear PF is 240. In which AC1 is 73 and AC10 is 167 and payable month PF is 780 then AC1 would be (239+73) and AC10 would be (541+167) to the payable month PF accounts.
20. What happens with If Round PF Amount separately on Arrear PF Gross ?
If Round Arrear PF amount separately opton is enabled then arrear PF account and payable month PF account is rounded and stored in database and then added but if it is not enabled then Arrear PF is added to the Payable month PF amount and then rounded off. With this in some of the cases there might be a difference of One Rupee.
21. Why PF is deducted on Leave Encashment? (Now it is NOT, earlier it was)
Since Leave encashment is calculated on Basic, hence, PF was deducted on Leave encashment but now it is not deducted.
22. Whar do you mean by EPF subscriber, EPS subscriber and EDLI subscriber?
EPF subscriber: It is the count of employee's whose PF is payable in the given month. Payable amount might be zero. EPS subscriber: It is the count of employee's whose pension is calculated. ELDI Wages: It is same as EPF subscriber.
23. What are the Statutory forms of PF?
Statutory Forms of PF in Webpay are: PF form 5: New joinees details. Form 10: Left employee details. PF challan: PF challan deposited monthly. PF form 9: First time Establishment details. PF Eligibility Report: To count the month wise subscriber. PF 12 A: It is PF return. PF 3A: Whole year PF details. Form 6A: Yearly PF return, deposited at the end of March. DBF: It is deposited along with FORM 6A. PF FORM 2: EPF and EPS nominees details.
24. How subscriber is calculated on PF FORM 12A?
On PF 12 A total subscriber is not calculated as no. of count of given month. It is calculated as previous month total subscriber adds with given month new joiners and substracts with previous month left employee. For Example: If I have to calculate the May month subscriber than i will have to take April month total subscriber and it would be added with May month joiners and substract with April month left employee.
25. How can you check PF challan amount and subscriber if client raises a question on it?
Total Subscriber can be checked from Monthly PF statement details. Basic wage is the total basic amount of the subscriber. This amount should be equal to column 6 of the Monthly PF Statement. Employer share of contribution is the AC1 of the employer share. It should be equal to column 9 of Monthly PF Statement. Employee share of contribution is the total PF of the employee. It should be equal to column 7 of the Monthly PF Statement.
Interview questions
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.
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 India, Ludhiana
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