Dear Harsh,
Here I would like to inform u that an employee was a member in the previous co and has not withdrawn the PF & joined the new establishment.
His Basic is Rs. 7000/=( more than prescribed limit ) in such case he will be continued to be the member of EPF.
New co. may deduct his PF on pay upto Rs 6500/= or on entire Basic.
So, pl take Form no 11 in r/o all new joinees.
Regards
H. R . Shah
Here I would like to inform u that an employee was a member in the previous co and has not withdrawn the PF & joined the new establishment.
His Basic is Rs. 7000/=( more than prescribed limit ) in such case he will be continued to be the member of EPF.
New co. may deduct his PF on pay upto Rs 6500/= or on entire Basic.
So, pl take Form no 11 in r/o all new joinees.
Regards
H. R . Shah
Hi,
Employees' Provident Fund Scheme
Top1
Things to know about the Employee Provident Fund Scheme, 1952:
What benefits do you get from the scheme?
How does the scheme work?
How much interest do your PF contributions earn?
To whom does your PF money go when you die?
Can you transfer your PF account when you change jobs?
Can you make nominations?
Will you be kept informed of your PF balance every year?
What benefits do you get from the scheme?
The EPF scheme is meant to make available funds to you when you need them for:
Retirement
Medical care
Purchase of house
Family obligations
Children’s education
Financing an insurance policy
As a member of the EPF, you get the following benefits:
1. You can completely withdraw the amount that has accrued in your account if:
You retire at the age of 58.
You retire – god forbid – because of permanent and total debilitation. (This could be either mental or physical, but must be ‘permanent and total’ -- the scheme distinguishes between partial and total disabilities.)
You immigrate or take up employment abroad.
Your services are terminated because of retrenchment in your company.
You choose to terminate your service under a voluntary retirement scheme.
The establishment you work for shuts down.
The organisation you work for shuts down, and you join one that does not participate in the EPF scheme.
2. You can withdraw up to 90 per cent of the amount in your credit in the year before your retire -- that is, between the ages of 57 and 58.
3. You can withdraw money from your PF to buy life insurance policies. The rules don’t mention a ceiling on this amount, but then it’s not likely to cost you that much.
4. You can also get advances from your provident fund corpus:
To buy land, or to build or buy a house.
To repay any loans that you've taken to buy or build a house.
To finance the treatment or hospitalisation of you or any member of your family.
To finance the weddings or college expenses of your children.
In special cases, where the establishment you work is temporarily shut down, or if your services have been terminated and you have challenged that termination in court.
Top
How does the scheme work?
The EPF scheme ensures that a certain part of your salary goes towards building a retirement corpus for you. How does it work? Twelve per cent of your salary is deducted every month and put into that retirement kitty. (There are some special circumstances -- if the establishment you work for employs less than 20 persons, or has been referred to the Board for Industrial and Financial Reconstruction etc -- under which your contribution is 10 per cent, not 12 per cent.) Your employer also pitches in with 12 per cent of your salary every month. But of this, 8.33 per cent is diverted to your pension fund -- and the remaining amount put into the provident fund.
So, if you earn a basic salary -- inclusive of dearness allowance in case your salary package specifies it -- of Rs 10,000 a month, a sum of Rs 1,200 will be deducted from it under the head ‘EPF’. Your employer also contributes Rs 1,200 – but Rs 541 of that amount is diverted to your pension fund, and only Rs 659 goes into your provident fund. Irrespective of the basic salary you earn, your employer's contribution to the pension fund cannot exceed Rs 541 a month (8.33 per cent of a pensionable salary of Rs 6,500).
If you wish to, and can afford to, you can contribute more than 12 per cent towards your provident fund. Your employer can, if he so chooses, match your contribution beyond the statutory 12 per cent, but few employers contribute more than they are required to under the law.
Use the EPF calculator to compute approximately what you will get from your PF account when you retire.
Top
What interest rate do your PF contributions earn?
The rate of interest is fixed by the central government, in consultation with a central board of trustees, every year in March-April. The interest is credited to your account on a monthly running balance with effect from the last day in each year. With effect from 1 April 2001, the rate of interest is 9.5 per cent.
To whom does your money go on your death?
The amount will be paid to your nominees or legal heirs. They will be required to fill up and submit Form 20, available from EPF offices.
Can you transfer your PF account when you change jobs?
Yes. You will need to fill up and submit Form 13 for this. In case you have changed more than one job in a year, you can still get your provident fund money from various employers by transferring the amounts and consolidating them in your current PF account.
Let's say that in a year, you worked in three companies -- A, B and C -- before you joined your current employer, D. You'd have to fill up three different forms and submit them to your current employer. He will then do the follow-up work, and your PF will be transferred to your current PF account number. If you had worked for employers in different cities, too, you can do much the same.
However, if you do not take up another job or if the company you join is not covered under the Act, you can withdraw the entire balance in your account, but only after two months. You will need to fill up and submit Form 19 for this.
Regards
Diyona
From India, Madras
Employees' Provident Fund Scheme
Top1
Things to know about the Employee Provident Fund Scheme, 1952:
What benefits do you get from the scheme?
How does the scheme work?
How much interest do your PF contributions earn?
To whom does your PF money go when you die?
Can you transfer your PF account when you change jobs?
Can you make nominations?
Will you be kept informed of your PF balance every year?
What benefits do you get from the scheme?
The EPF scheme is meant to make available funds to you when you need them for:
Retirement
Medical care
Purchase of house
Family obligations
Children’s education
Financing an insurance policy
As a member of the EPF, you get the following benefits:
1. You can completely withdraw the amount that has accrued in your account if:
You retire at the age of 58.
You retire – god forbid – because of permanent and total debilitation. (This could be either mental or physical, but must be ‘permanent and total’ -- the scheme distinguishes between partial and total disabilities.)
You immigrate or take up employment abroad.
Your services are terminated because of retrenchment in your company.
You choose to terminate your service under a voluntary retirement scheme.
The establishment you work for shuts down.
The organisation you work for shuts down, and you join one that does not participate in the EPF scheme.
2. You can withdraw up to 90 per cent of the amount in your credit in the year before your retire -- that is, between the ages of 57 and 58.
3. You can withdraw money from your PF to buy life insurance policies. The rules don’t mention a ceiling on this amount, but then it’s not likely to cost you that much.
4. You can also get advances from your provident fund corpus:
To buy land, or to build or buy a house.
To repay any loans that you've taken to buy or build a house.
To finance the treatment or hospitalisation of you or any member of your family.
To finance the weddings or college expenses of your children.
In special cases, where the establishment you work is temporarily shut down, or if your services have been terminated and you have challenged that termination in court.
Top
How does the scheme work?
The EPF scheme ensures that a certain part of your salary goes towards building a retirement corpus for you. How does it work? Twelve per cent of your salary is deducted every month and put into that retirement kitty. (There are some special circumstances -- if the establishment you work for employs less than 20 persons, or has been referred to the Board for Industrial and Financial Reconstruction etc -- under which your contribution is 10 per cent, not 12 per cent.) Your employer also pitches in with 12 per cent of your salary every month. But of this, 8.33 per cent is diverted to your pension fund -- and the remaining amount put into the provident fund.
So, if you earn a basic salary -- inclusive of dearness allowance in case your salary package specifies it -- of Rs 10,000 a month, a sum of Rs 1,200 will be deducted from it under the head ‘EPF’. Your employer also contributes Rs 1,200 – but Rs 541 of that amount is diverted to your pension fund, and only Rs 659 goes into your provident fund. Irrespective of the basic salary you earn, your employer's contribution to the pension fund cannot exceed Rs 541 a month (8.33 per cent of a pensionable salary of Rs 6,500).
If you wish to, and can afford to, you can contribute more than 12 per cent towards your provident fund. Your employer can, if he so chooses, match your contribution beyond the statutory 12 per cent, but few employers contribute more than they are required to under the law.
Use the EPF calculator to compute approximately what you will get from your PF account when you retire.
Top
What interest rate do your PF contributions earn?
The rate of interest is fixed by the central government, in consultation with a central board of trustees, every year in March-April. The interest is credited to your account on a monthly running balance with effect from the last day in each year. With effect from 1 April 2001, the rate of interest is 9.5 per cent.
To whom does your money go on your death?
The amount will be paid to your nominees or legal heirs. They will be required to fill up and submit Form 20, available from EPF offices.
Can you transfer your PF account when you change jobs?
Yes. You will need to fill up and submit Form 13 for this. In case you have changed more than one job in a year, you can still get your provident fund money from various employers by transferring the amounts and consolidating them in your current PF account.
Let's say that in a year, you worked in three companies -- A, B and C -- before you joined your current employer, D. You'd have to fill up three different forms and submit them to your current employer. He will then do the follow-up work, and your PF will be transferred to your current PF account number. If you had worked for employers in different cities, too, you can do much the same.
However, if you do not take up another job or if the company you join is not covered under the Act, you can withdraw the entire balance in your account, but only after two months. You will need to fill up and submit Form 19 for this.
Regards
Diyona
From India, Madras
Hi,
There is difference in opinion of Parag and Bhushan.
Parag says it is required to cut PF if an individual has not filled Form 11, whereas Bhushan, you are saying what i understand is that its second company's own wish to decide on this if he is hired on package of more than 6500 basic.
Can you please clear this point. In our company we are not cutting PF for more that 6500 basic employees and if an individual joins on higher package even if he was contributing PF before , we are not deducting PF.
Please reply.
From India, Delhi
There is difference in opinion of Parag and Bhushan.
Parag says it is required to cut PF if an individual has not filled Form 11, whereas Bhushan, you are saying what i understand is that its second company's own wish to decide on this if he is hired on package of more than 6500 basic.
Can you please clear this point. In our company we are not cutting PF for more that 6500 basic employees and if an individual joins on higher package even if he was contributing PF before , we are not deducting PF.
Please reply.
From India, Delhi
Hi,
There is difference in opinion of Parag and Bhushan.
Parag says it is required to cut PF if an individual has not filled Form 11, whereas Bhushan, you are saying what i understand is that its second company's own wish to decide on this if he is hired on package of more than 6500 basic.
Can you please clear this point. In our company we are not cutting PF for more that 6500 basic employees and if an individual joins on higher package even if he was contributing PF before , we are not deducting PF.
Please reply.
-------------------------------------------------
i agree with what parag has said. he has explained it very well.
please find attached form 11.doc
bhavik h chheda
www.chhedaconsultancyservices.com
1There is difference in opinion of Parag and Bhushan.
Parag says it is required to cut PF if an individual has not filled Form 11, whereas Bhushan, you are saying what i understand is that its second company's own wish to decide on this if he is hired on package of more than 6500 basic.
Can you please clear this point. In our company we are not cutting PF for more that 6500 basic employees and if an individual joins on higher package even if he was contributing PF before , we are not deducting PF.
Please reply.
-------------------------------------------------
i agree with what parag has said. he has explained it very well.
please find attached form 11.doc
bhavik h chheda
www.chhedaconsultancyservices.com
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Relief To Establishments Covered Under EPF From Levy Of Penalty For Delayed Deposit Of Dues Duri.pdf