Hi I am sharad, i am working as a HR executive in a company. i worked for 1.10 years in my previous company. there was pf deduction which was in 2 part one is pf part & other is pension fund.i want to know that i will get my pension fund amount or not.
1) is there any job duration limit that we should work for that particular organization for 3 years or 4 years then only will get the pension fund amount.
2)-what is percentage of interest i will get?
3)- in pf deduction there is 2 part one is by employer & one is by employee. so i want to know that employer part is also a part of My CTC or it is excluded from the CTC.
From India, Bangalore
1) is there any job duration limit that we should work for that particular organization for 3 years or 4 years then only will get the pension fund amount.
2)-what is percentage of interest i will get?
3)- in pf deduction there is 2 part one is by employer & one is by employee. so i want to know that employer part is also a part of My CTC or it is excluded from the CTC.
From India, Bangalore
Dear Sharad,
Greetings for the day,
Being an HR -Executive you must aware of the fact that contribution of EPF/EPS is consist of two parts employee & employer. Employee contribute 12% of his/her wages (basic+da+food conc. if any ) in the same way employer contribute the same of 12% and also the administrative charges 1.61% of epf/eps wages.Employee contribution is 12% & employer contribution & employer contribution is consist of 12% furthur bifurcated in 8.33% -EPS (employee pension scheme) or limit upto Rs. 541/- i.e 8.33% of 6500/- (ceiling) & 3.67% (diff. of 12% & 8.33%).
a) For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months).
b)The intrest payment is only possibe on 12% & 3.67% on 8.33% (pension fund) and government’s contribution of 1.17 percent of the worker’s monthly wages.
c) Yes employer part is under your ctc.
Thanks & Regards,
from,
sumit kumar saxena
From India, Ghaziabad
252Greetings for the day,
Being an HR -Executive you must aware of the fact that contribution of EPF/EPS is consist of two parts employee & employer. Employee contribute 12% of his/her wages (basic+da+food conc. if any ) in the same way employer contribute the same of 12% and also the administrative charges 1.61% of epf/eps wages.Employee contribution is 12% & employer contribution & employer contribution is consist of 12% furthur bifurcated in 8.33% -EPS (employee pension scheme) or limit upto Rs. 541/- i.e 8.33% of 6500/- (ceiling) & 3.67% (diff. of 12% & 8.33%).
a) For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months).
b)The intrest payment is only possibe on 12% & 3.67% on 8.33% (pension fund) and government’s contribution of 1.17 percent of the worker’s monthly wages.
c) Yes employer part is under your ctc.
Thanks & Regards,
from,
sumit kumar saxena
From India, Ghaziabad
Dear Sharad,
For a contribution of 1.10 years to Pension fund, the withdrawal benefit is 1.02 x average salary of last drawn 12 months. To get withdrawal benefit, there should be a minimum service of 1 year. But 6 months and above will be rounded up to 1 year. Hence the above quotation "For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months)" is not correct.
Abbas.P.S
From India, Bangalore
For a contribution of 1.10 years to Pension fund, the withdrawal benefit is 1.02 x average salary of last drawn 12 months. To get withdrawal benefit, there should be a minimum service of 1 year. But 6 months and above will be rounded up to 1 year. Hence the above quotation "For claiming the pension fund the contribution to the fund of 180days is must (whether 180days completed in 6or 7or 8 months)" is not correct.
Abbas.P.S
From India, Bangalore
Mr.Sharad,
Why you are thinking now itself of with drawal benefit from your PF and EPs. Since now only you have started your career and continue to be a member of Provident fund wherever you work. You can get it transferred the fund from one company to other by applying in Form No.13 through your employer and see that you can continue till your retirement after attaining the age of 58 years. Provident Fund is nothing but Bhavishyanidhi of your future. This will help you in your future in getting your monthly pension from and out of your contribution of EPS. If you are not contributing over three years continuously , then you can think over with drawal of PF and EPS, Now the Government is thinking to increase the wage ceiling from 6500 to 15000 per month. This will be more beneficial to the employees.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels)
Labour Laws Consultant
From India, Bidar
Why you are thinking now itself of with drawal benefit from your PF and EPs. Since now only you have started your career and continue to be a member of Provident fund wherever you work. You can get it transferred the fund from one company to other by applying in Form No.13 through your employer and see that you can continue till your retirement after attaining the age of 58 years. Provident Fund is nothing but Bhavishyanidhi of your future. This will help you in your future in getting your monthly pension from and out of your contribution of EPS. If you are not contributing over three years continuously , then you can think over with drawal of PF and EPS, Now the Government is thinking to increase the wage ceiling from 6500 to 15000 per month. This will be more beneficial to the employees.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels)
Labour Laws Consultant
From India, Bidar
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.
PF guidleines for Pension fund.pdf