As per the EPF scheme, an employee shall cease to be the member of EPS from the date of attaining 58 years of age or from the date of vesting admissible benefits under the scheme, whichever is earlier. I am 66.
Can I continue PF after 58 years?
As per the existing provisions under the Indian Provident Fund (PF) law, an EPF account becomes ‘inoperative account' and does not earn further interest, once an employee retires from service after attaining the age of 55 years, migrates abroad permanently or dies and does not apply for withdrawal of his accumulated ...
What is PF age limit?
What is the age limit for EPF contribution? Contributions towards EPF can be made till 58 years of age , while the upper age limit for vesting of pension is 60 years.
How PF is calculated on salary?
The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.
What is the PF limit on salary?
You then fill the basic monthly salary and the dearness allowance up to a maximum limit of Rs 15,000 . The minimum percentage of contribution to your EPF is 12%. You can increase the percentage if you are making any contribution to the Voluntary Provident Fund.
Is PF mandatory above 60 years?
Prableen Bajpai,Founder FinFix® Research & Analytics replies: According to EPFO guidelines, an employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the scheme, whichever is earlier.
Can I continue PF after resignation?
Until such time, interest will continue to accrue on the PF balance. In your case, you have ceased employment after completing 55 years of age and no contributions have been made thereafter. Therefore, you should be able to earn interest in the PF account up to 36 months from the date of leaving your previous job.
Can we keep EPF fund till 100 years?
EPF: Members can keep money till age 100 | TheStarTV.com. The Employees Provident Fund (EPF) CEO Datuk Shahril Ridza Ridzuan says members can keep their money and receive dividends in the fund till age 100, adding that these changes that will take place in 2017.
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.
Is PF calculated on gross salary?
As per the Fourth Schedule of the Income Tax Act, 1961, the employer contribution to PF is exempt from income tax only to the extent of 12% of Basic pay and DA. When PF calculation is based on PF Gross instead of Basic (plus DA), the employer contribution to PF could attract tax.
What is DA in salary?
Dearness Allowance is a component of the salary that cushions against inflation and is revised twice a year — once in January and once in July. 3. The increase in the DA and DR will impose an annual burden of ₹34,401 crore on the exchequer, Anurag Thakur said.
Who is eligible for PF?
Any salaried employee with a monthly income of less than 15,000 INR needs to compulsorily be a member of the EPF. An employee with a monthly income higher than INR 15,000 (the current prescribed limit) is eligible to become a member of the EPF if he/she gets approval from the Assistant PF Commissioner and employer.
Is EPF tax free?
As per the notification, issued on August 31, contributions above ₹2.5 lakh in the Employee Provident Fund (EPF) per year will be taxed . ... In cases where there is no employer contribution in the EPF account, the threshold will be ₹5 lakh a year.
How much is basic salary of CTC?
Usually, the basic salary is 40% to 60% of CTC (Cost to Company). The statutory components: bonus, PF, gratuity and other benefits are determined based on the basic salary. An increase or decrease in the basic salary can affect the employee's CTC.
How is PF pension calculated?
So, upon applying the formula, (15000 * 35 / 70) = Rs. 7,500 per month is the maximum pension that one can earn through EPS. Some points that are noteworthy here are: The minimum pension that a person can earn under EPS is Rs.
What are the new provident fund rules?
With the new legislation in place, provident funds will now be subject to the same rules as pension funds at the time of retirement – except for members 55 years or older, who will remain unaffected for as long as they stay on the same provident fund.
