Dear all, I have been working on epf from the last 3 months and i had an general queries regarding what is epf,eps and pension fund. Help me out plzzz... Thanks in advance.
From India, Hyderabad
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From India, Hyderabad
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Both EPF and Pension Fund operate under respective schemes, namely the P.F. Scheme 1952 and the Pension Scheme 1995 within the framework of the P.F. and Miscellaneous Provisions Act 1952. Both funds are meant to provide financial support to the employee when they cease to be in service. It means it is savings for a rainy day in the life of an employee. Both Provident Fund and Pension Fund are constituted by contributions from the employer and the employee at rates stipulated under the Act and the Scheme. However, in the case of a pension, it is constituted only by a portion of the employer's contribution. While P.F. is available in lump sum, a pension is granted in installments every month calculated by a prescribed formula.
This is only an introduction to set the ball rolling for someone who is working on P.F. I suggest you go through the provisions as it is necessary for any HR dealing with statutory compliances to understand them by himself in-depth so that he will be in a better position to comply with requirements and serve the employees.
B. Saikumar
From India, Mumbai
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1931This is only an introduction to set the ball rolling for someone who is working on P.F. I suggest you go through the provisions as it is necessary for any HR dealing with statutory compliances to understand them by himself in-depth so that he will be in a better position to comply with requirements and serve the employees.
B. Saikumar
From India, Mumbai
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Dear,
There are two major benefits designed by the Government through the EPFO to provide financial security to the contributor. Hence, there are two funds: one is the Provident Fund and the other is the Pension Fund. The amount you are contributing and the employer contributing for you is going to both funds as mentioned below:
- Employees' Contribution, i.e., 12% of Basic Salary, totally goes to the Provident Fund.
- Employer Contribution for you (except Admin. Charges), i.e., 12% of Basic Salary, divided as 3.67% and 8.33%.
- 3.67% goes to the Provident Fund, and 8.33% goes to the Pension Fund.
It means every month a total of 24% of your earned basic salary is deposited in your PF Account.
Thank you.
From India
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There are two major benefits designed by the Government through the EPFO to provide financial security to the contributor. Hence, there are two funds: one is the Provident Fund and the other is the Pension Fund. The amount you are contributing and the employer contributing for you is going to both funds as mentioned below:
- Employees' Contribution, i.e., 12% of Basic Salary, totally goes to the Provident Fund.
- Employer Contribution for you (except Admin. Charges), i.e., 12% of Basic Salary, divided as 3.67% and 8.33%.
- 3.67% goes to the Provident Fund, and 8.33% goes to the Pension Fund.
It means every month a total of 24% of your earned basic salary is deposited in your PF Account.
Thank you.
From India
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Accounts - PF
There are five accounts
1) AC 1 (PF)
(BA+DA) 12% Employee share
(BA+DA) 3.67% Employer share
2) AC 2 10 (Pension)
(BA+DA) 8.33% Employer share
3) AC 2 (Administration Charges)
(BA+DA) 1.1% Employer share
4) AC 21 (EDLI -Employees Deposit Link Insurance)
(BA+DA) .5%Employer share
5) AC 22 (EDLI Administration charges)
(BA+DA) .01% Employer share
Note –If the BA+DA is more than 6500, then the calculation for AC 1(employer Share only) and AC 10 is as follows.
6500*3.67 i.e. 239
6500*8.33% ie, 541 common for all salary, which is above 6500.
Regards,
Rajeshkumar.B
From India, Bangalore
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There are five accounts
1) AC 1 (PF)
(BA+DA) 12% Employee share
(BA+DA) 3.67% Employer share
2) AC 2 10 (Pension)
(BA+DA) 8.33% Employer share
3) AC 2 (Administration Charges)
(BA+DA) 1.1% Employer share
4) AC 21 (EDLI -Employees Deposit Link Insurance)
(BA+DA) .5%Employer share
5) AC 22 (EDLI Administration charges)
(BA+DA) .01% Employer share
Note –If the BA+DA is more than 6500, then the calculation for AC 1(employer Share only) and AC 10 is as follows.
6500*3.67 i.e. 239
6500*8.33% ie, 541 common for all salary, which is above 6500.
Regards,
Rajeshkumar.B
From India, Bangalore
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Shrikant,
What is the basic salary? If the basic salary exceeds 6500, then the person will be excluded from the PF Act, meaning the employee can choose whether they want to invest in PF or not. However, if the basic salary is less than 6500, PF contributions are mandatory from day one of their service.
Regards,
Jyoti
From India, Kolhapur
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What is the basic salary? If the basic salary exceeds 6500, then the person will be excluded from the PF Act, meaning the employee can choose whether they want to invest in PF or not. However, if the basic salary is less than 6500, PF contributions are mandatory from day one of their service.
Regards,
Jyoti
From India, Kolhapur
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EPF-Provident-F und-Calculator. xlsx
Provident fund.zip
PROVIDENT FUND.rar