what is meant by provident fund? how to calculate the provident fund in a company? who are all eligible for provident fund? what are the forms used for providend fund?
From India, Delhi
2From India, Delhi
There are two types of Provident Fund
1. PPF - Public Provident Fund
2. EPF - Employee Provident Fund
In an organisation we are concerned with EPF
P.F (PROVIDENT FUND): -
1. PF is a statutory deduction. It is deducted on Basic + D.A + Cash value of Food Allowance @ 12%.
D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2. Company pays P.F on either actual or Capped Basic. Capped basic is decided on company rules and is not restricted. It is applicable to those employee’s whose basic exceeds Rs.6500/- only.
3. Employer and Employee Contribution are equal in P.F which is 12%.
This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts.
8.33% on Family pension Fund and 3.67 % on Employee Provident Fund.
4. Every month Employer needs to pay additional charges over and above PF Company Contribution as per the below break up:
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D.L.I)
0.01% E.D.L.I Administration Charges.
In the case if the company has exemption in EDLI u/s 17(2a), company need not to pay employee deposit linked charges 0.5% and the admission charges are levied at 0.005% instead of 0.010%.
5. The company needs to file Monthly and Annual Returns.
Every month company has to submit duly paid P.F Challan.
Form 12A, Form-5 (additions) and Form 10 (deletions) and Nomination Form-2 (newly joined employee details).
In Annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payments.
6. The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joiner to the scheme along with the monthly report.
7. P.F. Monthly payment due date is 15th with a grace up to 21st. Monthly Returns due date is 25th of following month and Annual Return due date is 30th April.
As per P.F authorities, FY is from 1st March to 28th February.
8. Any employee who wishes to transfer his old company’s PF balances he can transfer his PF Current A/C using Form-13 signed by current employer (new company employer) and old employer has to submit Form 3A to P.F office.
Employee P.F Number will be changing in every company.
9. Any employee who wants to en-cash his P.F amount, he can draw the total amount with using of Form 10 C & Form 19. Form 10 C is E.P.F & Form 19 is F.P.F
10. Recently P.F Authorities introduced e-filling system, in these systems we have to submit every month P.F details in soft copy and hard copy, here no need to submit Annual Returns. (Currently this is not in use).
11. There are 5 number of accounts in PF Challan as shown below:
A/C#01 - PF contributed by Employers & Employee (12% & 3.67)
A/C#02 – PF administration charges (1.1%)
A/C#10 – Pension Fund Account (8.33%)
A/C#21 – EDLI charges (0.5%)
A/C#22 – EDLI Administration charges (0.10%)
visit this site - EPFO u will get all the necessary informations
From India, Mumbai
1. PPF - Public Provident Fund
2. EPF - Employee Provident Fund
In an organisation we are concerned with EPF
P.F (PROVIDENT FUND): -
1. PF is a statutory deduction. It is deducted on Basic + D.A + Cash value of Food Allowance @ 12%.
D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2. Company pays P.F on either actual or Capped Basic. Capped basic is decided on company rules and is not restricted. It is applicable to those employee’s whose basic exceeds Rs.6500/- only.
3. Employer and Employee Contribution are equal in P.F which is 12%.
This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts.
8.33% on Family pension Fund and 3.67 % on Employee Provident Fund.
4. Every month Employer needs to pay additional charges over and above PF Company Contribution as per the below break up:
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D.L.I)
0.01% E.D.L.I Administration Charges.
In the case if the company has exemption in EDLI u/s 17(2a), company need not to pay employee deposit linked charges 0.5% and the admission charges are levied at 0.005% instead of 0.010%.
5. The company needs to file Monthly and Annual Returns.
Every month company has to submit duly paid P.F Challan.
Form 12A, Form-5 (additions) and Form 10 (deletions) and Nomination Form-2 (newly joined employee details).
In Annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payments.
6. The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joiner to the scheme along with the monthly report.
7. P.F. Monthly payment due date is 15th with a grace up to 21st. Monthly Returns due date is 25th of following month and Annual Return due date is 30th April.
As per P.F authorities, FY is from 1st March to 28th February.
8. Any employee who wishes to transfer his old company’s PF balances he can transfer his PF Current A/C using Form-13 signed by current employer (new company employer) and old employer has to submit Form 3A to P.F office.
Employee P.F Number will be changing in every company.
9. Any employee who wants to en-cash his P.F amount, he can draw the total amount with using of Form 10 C & Form 19. Form 10 C is E.P.F & Form 19 is F.P.F
10. Recently P.F Authorities introduced e-filling system, in these systems we have to submit every month P.F details in soft copy and hard copy, here no need to submit Annual Returns. (Currently this is not in use).
11. There are 5 number of accounts in PF Challan as shown below:
A/C#01 - PF contributed by Employers & Employee (12% & 3.67)
A/C#02 – PF administration charges (1.1%)
A/C#10 – Pension Fund Account (8.33%)
A/C#21 – EDLI charges (0.5%)
A/C#22 – EDLI Administration charges (0.10%)
visit this site - EPFO u will get all the necessary informations
From India, Mumbai
Gentleman, You have elaborately explained. Good. But one thing it is missing that, statutorily you have to deduct at the rate of 12% and 12% management contribution. The ceiling is restricted to 6500. What about the employees getting more than 6500 and how the Act provides under the relevant section/regulations not mention. Will you please update it.
Regards.
MRN. Murthy
From India, Bangalore
Regards.
MRN. Murthy
From India, Bangalore
I am taking care of pf contribution for 300 employees who are casual labors. They are unstable in work. They will work for one month and go for leave in one month. When they are in leave they cant have contribution for that month. Help me on this to care forward their account for next month with out deletion.
From India, Bangalore
From India, Bangalore
You should refer to this article:
Provident Fund - What you need to know
It pretty much covers all the questions that you may have regarding Provident Fund.
Another pretty useful article is the one on how to register for PF.
Registering for Provident Fund - Step by Step guide
I've also attached the PDFs of these articles to this email.
From India, Mumbai
Provident Fund - What you need to know
It pretty much covers all the questions that you may have regarding Provident Fund.
Another pretty useful article is the one on how to register for PF.
Registering for Provident Fund - Step by Step guide
I've also attached the PDFs of these articles to this email.
From India, Mumbai
Dear Sir/Madam,
our one employee has crossed the age of 58 years and he wants to withdrawal our Final settlement of epf and also start pension.
Please guide me which form and document is applicable for this scheme.
From India, Bhopal
our one employee has crossed the age of 58 years and he wants to withdrawal our Final settlement of epf and also start pension.
Please guide me which form and document is applicable for this scheme.
From India, Bhopal
Hi,
Please check the below URL
https://www.finacbooks.com/provident-fund-registration
From India, New Delhi
Please check the below URL
https://www.finacbooks.com/provident-fund-registration
From India, New Delhi
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc