Employees' Provident Funds Scheme, 1952
The
scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate
. It made available to the employee concerned the accretions in the Provident Fund a/c with interest in lump sum on retirement or leaving the job.
What are the main features of Employees provident fund and Miscellaneous Provisions Act?
Under this scheme, every employee is required to make a contribution towards the provident fund at the
rate of 12% of the Basic Wages, Dearness Allowance and cash value of food concession
. Further, the employer also makes an equal amount of contribution as the employee towards the fund.
What are the features of EPF?
| Features EPF EPS | Employee Contribution 12% Nil | Employer Contribution 8.33 3.67% | Deposit Limit Predetermined, fixed rate Maximum of Rs.1,250 | Age Limit for withdrawal Not required 10 years of minimum service and 50 years of age for early pension. 58 years of age for regular pension. |
|---|
What is the provident fund Act 1952?
India Code: Employees Provident Funds and Miscellaneous Provisions Act, 1952. Long Title:
An Act to provide for the institution of provident funds pension fund and deposit-linked insurance fund for employees in factories and other establishments
.
What are the main features of provident fund Act 1952?
Employees' Provident Funds Scheme, 1952
The
scheme provided for provident fund system on contributory basis by the Employers and the Employees at equal rate
. It made available to the employee concerned the accretions in the Provident Fund a/c with interest in lump sum on retirement or leaving the job.
Why is PF important?
PF account
can be used for home loan repayment
. One can also buy land through PF balance. Under the EDLI scheme, in case of death during the service period, a PF account holder by default becomes eligible for free insurance up to Rs 7 lakh and there is no need to pay any premium for the death cover.
How is PF total calculated?
To understand how the EPF calculator works, let us have an example. Employers contribution towards EPS = 8.33% * 14,000 = Rs 1,166. The total contribution that is made by the employer and employee towards the EPF account of the employee = Rs 1,680 + Rs 514 = Rs 2,194. You have the interest rate at 8.5% for FY 2020-21.
Is PF mandatory for salary above 15000?
EPF eligibility criteria
If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and
it is not mandatory for you to become a member of the EPF
, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.
What is the purpose and scope of the employees Provident Fund Act?
[IND ¶21-001] Objective and scope. The objective of the Act is
to provide for instituting a compulsory contributory fund for the future of the industrial worker after retirement or for the worker's dependants in the case of early death
. It also inculcates the habit of saving among the workers.
What is PF rule?
The rule requires all PF
accounts to be split into separate accounts
– one with the taxable contribution and interest earned on that component, and another with the non-taxable contribution that shall include the closing balance of the PF account as on March 31, 2021 and all fresh non-taxable contributions and interest …
Who is eligible for PF benefits?
Employees drawing less than Rs 15,000 per month
have to mandatorily become members of the EPF. However, an employee who is drawing ‘pay' above prescribed limit (currently Rs 15,000) can become a member with permission of Assistant PF Commissioner, if he and his employer agree.
Does PF get doubled?
So friends, I would like to tell you that yes,
of course PF money gets double
. … EMPLOYEE SHARE: 12% of your salary is PF deposited. EMPLOYER SHARE: 3.67% of the 12% money deposited by your company (where you are working). PENSION: 8.33% of the 12% of money deposited by your company (where you are working).
What is PF and how it works?
An
Employee Provident Fund
is a scheme that has been put in place for all salaried employees working in a corporate organization with 20 or more employees. The Employee Provident Fund Organization of India or EPFO has instructed all organizations to put a fraction of employees' salaries into the provident fund.
How can I check my Employees Provident Fund Scheme 1952?
To check your EPF account balance on the EPFO portal, you must have an active Universal Account Number (UAN). To check your balance, you will have to
visit https://passbook.epfindia.gov.in/MemberPassBook/Login
.jsp and enter your UAN and password. The website allows you to view and download your EPF account statement.
What is the difference between EPF 1952 and 1995?
EPF (Employees' Provident Fund Scheme 1952) and
EPS
(Employees' Pension Scheme 1995) are the two different retirement saving schemes under Employees' Provident Funds and Miscellaneous Provisions Act, 1952, meant for salaried employees. … 6,501per month have an option to get PF deducted from their salary.
Is it compulsory to deduct PF from salary?
If your starting salary is above 25000 Rs then it is not mandatory to deduct PF
. But if you are already a member of EPF and your monthly salary increases to above 25000 Rs then you have to continue your PF contribution, but PF will be calculated on a limit 0f 15000 salary only.
