An Employee Provident Fund (EPF) is supposed to be governed by very specific policies from the on-set of its creation. Issues like employee contribution, management or company counterpart/ share, member entitlements, withdrawals, membership termination, etc. are supposed to be the first things that should be addressed when it is created and starts operation.
Of course, there are organizations that start an EPF without them.
I have seen some organizations whose fund has grown so big, yet safeguards for the EPF is vague. That's why sometimes there are fraud in the management of such funds, esp when the laws are silent and/ or there is no government body that supervises or has oversight function over its operation/ admdinistration.
I suggest you create formal policies for your fund before it becomes too late.
My outfit especialises in the set-up of cooperatives, non-stock savings and loan associations, and provident funds. We can help you develop a complete policy manual for it.
Get in touch should you be interested.
Ed Llarena, Jr.
Provident Fund is meant for, I believe, to safeguard the life of the employee and his/her family after his/her retirement. However, the Act has also given some flexibility to withdraw money for a specific purposes like construction of House, marriage etc. Dependig on the amount saved with the provident fund, amount can be withdrawn not more than 50%.
Can i know what is the minimum amount of salary PF is paid?(For example if an employee's salary is Rs.1000.Is PF paid to him)
Can a person withdraw his PF amount all at once or there are any limits for that? After resigning an organization , at what particular period he becomes eligible for withdrawing PF amount?
regarding pf withdraw,
for purchasing a site, employee can withdraw basic+da 24 months or actual value for that site or employees contribution with interest.
Employee should put up minimum 5 years service to withdraw the fund.
for purchasing a house, employee can withdraw basic+da 36 months or actual value for that site or employees contribution with interest
Why Vote? User validation is extremely important for good content to prosper.