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Salary consists of two parts i.e. earnings & deductions Provident Fund is one of the statutory deduction done
by the employer at the time of salary payment
Introduction Provident Fund has come into force to give better future to employees on their retirement & his dependants in case of his death during employment The Employees Provident Funds Act 1952 is compulsory contributory fund for the future of an employee after retirement or for his dependents in case of his early death Act is applicable to all states of India except Jammu and Kashmir
Eligibility Every industry employing 10 or more persons (180 industries are specified in Schedule 1 of the Act) Any other establishment notified by the Central Government even if employing less than 10 persons
Calculation 12% contribution by the employee is directly transferred to his Provident Fund A/c 12% is contributed by the employer out of which 8.33% is credited to Employee Pension Fund and the balance 3.67% is transferred to PF A/c of the employee
Benefits
Interest Interest is credited to the members PF A/c on monthly running balance Interest rate is fixed by the Central Government in consultation with the Central Board of trustees of EEPF every year during March / April The present rate of interest is 9.5%
Nomination The member can nominate other person / persons to receive the Fund amount in the event of his death The nomination details provided by the members are maintained at the Regional Provident Fund Office for use in the event of death of the member
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Annual Statement of Account After the close of each year of contribution, annual statement of account will be sent to each member through establishment where the member was last employed through form 23.
Full Settlement PF A/c settled immediately under the circumstances; Retirement after 58 years Retirement on account of permanent incapacity Termination of service on retrenchment Voluntary Retirement Scheme (VRS) Permanent migration from India to settle abroad / taking employment For female members leaving service for getting married
Advances / Withdrawals Purchase of site for construction of House / purchase of flat Additions / alterations / improvements to the house Repayment of loan Hospitalization for more than a month / major surgical operation / suffering from TB, Leprosy, Paralysis, Cancer, Heart ailment etc Marriage of self / son / daughter / sister / brother Education of son / daughter Physically handicapped member for purchasing an equipment to minimize the hardship due to handicap
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Monthly Returns Filing monthly PF returns with the EPFO within 15 days of the close of each month Provide list of new employees joined in the establishment during the preceding month & are qualified to become member in fund (Form-5) Provide list of employees leaving service during the preceding month (Form-10) Employer should file 'Nil' returns if there is no new employee or no employee leaving the service during the preceding month Provide the total no. of members last month, new members joined and existing members resigned in the preceding month & total no. of present subscribers to be fund (Form-12A)
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Annual Returns Employer shall send to the Commissioner within one month of the close of the year, a consolidated Annual Contribution Statement (Form-6A) and individual employee sheet (Form3A) showing the contributions made by the employees and employer during the year
Penalty 1237% interest is payable for the delayed period in remitting contributions/ administrative charges depending upon the delayed period
Exemption Employer can seek exemption from the Scheme if similar / better benefits are provided other than the Scheme by forming a Voluntary PF Trust which will work under the rules & regulations of EPFO
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Introduction To give long term protection / financial security to employee upon retirement and his family in case of his pre-mature death, family pension scheme has come into force by diverting 8.33% contribution made by employer towards PF scheme Application Scheme is compulsory for all the existing members who become members of the Employees Provident Fund Scheme Eligible Monthly pension to employees on retirement Widows on death of the member Children of the member below 25 years age Monthly pension to members upon permanent disablement during service
total
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Application EDLI scheme is compulsory for all the existing members who become members of the PF Scheme Life insurance benefit (death coverage) of the employee is available under this scheme while in service
Calculation EDLI is calculated on EDLI slab Rs. 6500/ 0.50% EDLI calculated on total EDLI slab (Rs. 6500) wages and transferred to EDLI fund 0.01% EDLI Administration charges calculated on total EDLI wages EDLI / administration charges are payable by the employer
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Eligible Person who is eligible to receive PF dues of deceased member who died while in service is only eligible to receive EDLI fund Exemption Employer can seek exemption from the Scheme if similar / better benefits are provided other than the Scheme with the consent of majority of employees
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List of Forms
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13 For transferring the PF A/c of a member from one (revised establishment to another establishment covered ) under the Act / Scheme Application for financing a life insurance policy out 14 of PF A/c To be submitted by a member to withdraw his PF 19 dues on leaving service / retirement / termination In the event of death of member, this form is to be 20 used by a nominee / family member to claim the member's PF accumulation For the use of PF members to avail advances / 31 23 withdrawals as provided in the scheme
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To be submitted by the person eligible to receive 5 (I.F.) the PF A/c dues of the deceased member who died while in services
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Summary
Form
2 Nomination Form Return of Employees qualifying for membership to the Employees' Provident Fund for the first time during every month. Within 15 Days of the following month. Return of members leaving service during the month. Consolidated Statement of dues and remittance By 25th of the following month to which the dues relate. Member's annual Contribution card Consolidated annual contribution statement
Purpose
5 10 12A 3A 6A
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January Before 15th P.F., P.F. Challan Before 25th P.F Form 5, 10 & 12A(P.F)
March
Before 15th P.F., P.F. Challan Before 25th P.F Form 5, 10 & 12A(P.F) P.F, P.F. Annual Returns form 6A & 3A
FAQ
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Ans : The purpose of the scheme is to provide for 1) Superannuation pension. 2) Retiring Pension. 3) Permanent Total disablement Pension
pension money if an employee resigns from the Service? Ans : Normally the procedure for receiving P.F & Pension money is , the employee has to fill 19 & 10 c Form and submit the same to PF Desk , which is then submitted to the P.F office after two months, this two months is nothing but a waiting period as the rules are that an employee should not be in employment for two months after resigning if he has to withdraw his P.F amount. After completion of two months the form is submitted to the regional provident fund Commissioner office after which the employee receives his amount along with interest within a period of 90 days.
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