Table of Contents
What is the applicability of PF?
It is necessary that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. As per the guidelines in EPF, employee, whose ‘basic pay’ is more than Rs. 15,000 per month, at the time of joining, is not required to make PF contributions.
Is EPF applicable for all employees?
All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer. The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of the basic salary.
What is EPF eligibility?
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 it mandatory to deduct 10% PF?
Clarity from EPFO Now, the EPFO has made it clear that it is not mandatory for either employers or employees to reduce the contributions to 10 per cent. “The reduced rate of contribution (10 per cent) is the minimum rate of contribution during the period of the package.
Is it compulsory to contribute EPF?
An employer must contribute up to ₹1,250 towards Employee Pension Scheme, depending on the basic pay. The money contributed by an employer goes towards different schemes. Of the basic salary, about 3.67% goes towards EPF or for investments, and 8.33% goes towards Employee Pension Scheme (EPS).
What is the new rule for PF deduction?
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 …
What is the rule of EPF withdrawal?
The minimum PF balance of the member should be more than ₹ 20,000 either individually or including that of the spouse in case he/she is also a member of the EPFO. However, a member can withdraw the PF balance only once in a lifetime to pay for the property.
Who is not eligible for EPF?
As per the rules, in EPF, employee whose ‘pay’ is more than Rs 15,000 a month at the time of joining, is not eligible and is called non-eligible employee. Employees drawing less than Rs 15,000 a month have to mandatorily become members of the EPF.
How is eligibility verification done for the EPF?
Your eligibility verification will take place once you enter your account using the UAN and fill in details of both the employers. The EPF is a welfare scheme that ensures that all salaried citizens are setting a portion of their earnings aside in anticipation of their retirement.
How is Employee Provident Fund ( EPF ) managed in India?
Managed by the Employee Provident Fund Organisation of India (EPFO), the Employee Provident Fund (EPF) is an employee’s fund wherein the employee and the employer have to contribute an equal pre-decided amount of money which can later be leveraged by the employee. How to login to EPFO Portal?
What is the purpose of Section 7A of EPF Act?
Section 7A of Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 provides for quantification of amount due from any employer under any provision of this Act and Schemes framed thereunder. The amount so quantified is recovered in accordance with the procedure prescribed under various provisions of the Act.
Which is the revised procedure for initiation of inquiry under EPF Act?
EPF has issued a notification on 14th February 2020 and notified revised procedure for initiation of inquiries u/s 7A of Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi – 110 066.