Pbs1414
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Thread Started by #pbs1414

Dear All,



Please find enclosed the Frequently Asked questions on PF Act, which details are given below-



PROVIDENT FUND



Q1) What is the Contribution for Provident Fund both by the Employer & Employee ?

Ans : The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.

Q2) Is it Compulsory for the all the employees to contribute to the Provident Fund ?

Ans : Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund .

Q3) Is it beneficial for employees who draw salary above Rs 6501/- to become member of Provident Fund ?

Ans Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.

Q4) What if an employee while joining establishment has a basic salary of Rs 4200 and after some period of time his basic salary increases above Rs 6501/-, does he have an option to terminate his member ship form the Provident fund act?

Ans : Employee who while joining the organisation has a basic salary above Rs 6501/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 6501/- but after some period of time their basic increases above Rs 6501/- have to compulsorily continue to be member of provident Fund.

Q5) What is the contribution percentage to the Provident fund and Pension Scheme ?

Ans : Employers contribution of 12% of basic salary is totally deposited in provident fund account Whereas out of Employees contribution of 12% , 3.67% is contributed to Provident fund and 8.33% is deposited in Pension scheme.

Q6) Which form has to be filled while becoming member of provident fund ?

Ans : Nomination Form No 2 has to be filled to become a member of the Provident fund, form is available with HR department .

Q7 ) Which form has to be filled while transferring provident fund deposit ?

Ans : You just have to fill form no 13 to transfer your P.F amount.

Q8 ) What is the provision of the scheme in the matter of nomination by a member ?

Ans : Each member has to make a nomination to receive the amount standing to his credit in the fund in the event of his death. If he has a family, he has to nominate one or more person belonging to his family and none other. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires family, such nomination becomes invalid and he will have to make a fresh nomination of one or more persons belonging to his family. You cannot make your brother your nominee as per the Acts.

Q9 ) When is an employee eligible to enjoy pension scheme ?

Ans : For an employee to become eligible for Pension fund, he has to complete membership of the Fund for 10 Years.

Q10 ) What does it mean by continuous service of ten years ?

Ans : When we say continuous service of 10 years in Employee Pension Fund, we mean to say that during services, for e.g., an employee who has worked with X company for say 3 years, then he resigned from that organisation and joined Y company, wherein he worked for 2 years, then resigned from there to join establishment for 5 years but during these 10 years of service he has not withdrawn but transferred his Employee pension fund, then we say continuous service of ten years.

Q11 ) When can an employee avail the benefit of Employee pension fund scheme which he has contributed during his ten years of continues service /

Ans : An employee can avail the benefit after completion of 58 years of service.

Q12 ) What happens to the provident fund & Employee Pension fund if an employee who wants to resign from the service before completion of ten years of continues service?

Ans : Employee can withdraw the PF accumulations by filling Forms 19 & 10 C which is available with the HR department.

Q13 ) What is this 19 & 10C form ?

Ans : Form No 19 is for Provident fund withdrawal & Form No. 10 C is for Pension scheme withdrawal.

Q14 ) Do we get any interest on the amount which is deposited in the Provident Fund account?

Ans : Compound interest as declared by the Govt. is given for every year of service.

Q15 ) What is the accounting year for Provident fund account?

Ans : Accounting year is from March to February.

Q16 ) What are the benefits provided under Employee Provident Fund Scheme?

Ans : Two kinds of benefits are provided under the scheme-

a) Withdrawal benefit

b) Benefit of non -Refundable advances

Q18 ) What is the purpose of the Employee's Pension Scheme ?

Ans : The purpose of the scheme is to provide for

1) Superannuation pension.

2) Retiring Pension.

3) Permanent Total disablement Pension

Superannuation Pension: Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years.

Retirement Pension: member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years.

Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.

Q19 ) How much time does it take to receive P.F & 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.

Q20 ) Do we receive money through postal order ?

Ans Previously there was a procedure wherein member use to get P.F through Postal order but now While submitting the P.F form withdrawal form you have to mention your saving Bank account No. & the complete address of the Bank where you hold the account.

Q21 ) How would I know the amount of accumulations in my PF account ?

Ans : PF office sends an annual statement through the employer which gives details about the PF accumulations. The statement contains details like, Opening balance, amount contributed during the year, withdrawal during the year, interest earned and the closing balance in the PF account. This statement is sent by the PF department on completion of the financial year.

Q22 ) Which establishments are covered by the Act ?

Ans : Any establishment which employs 20 or more employees. Except apprentice and casual laborers, every Employee including contract labour who is in receipt of basic salary up to Rs. 6500 p.m. is covered by the Act.

Q23 ) In case after registering the establishment at any point in time, the number of employees working in it becomes less than 20 then will the Act apply ?

Ans : Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20.

Q24 ) Is the Act applicable to a factory which is closed down but is employing a few employees to look after the assets of the establishment ?

Ans : No, Where the establishment is closed down and only four security men are employed for keeping a watch over the assets and properties of the establishments, the Act would not be applicable.

Q25 ) Is a trainee an employee under the Act ?

Ans : Yes, a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice's Act then he/ she will not be considered as an employee under this Act.

Q26) Is it possible to appeal the orders of the Central Government or the Central Provident Fund Commissioner ?

Ans : Yes, there is a body called as Provident Fund Appellate Tribunal where an employer can appeal.

Q27 ) Who is the authority to decide regarding the disputes if any ?

Ans : In case there is a dispute regarding the applicability of the Act or the quantum of money to be deducted etc. the authority to decide are the

i)Central Provident Fund Commissioner,

ii)any Additional Provident Fund Commissioner,

iii)any Additional Central Provident Fund Commissioner

iv)any Deputy Provident Fund Commissioner

v)any Regional Provident Fund Commissioner or

vi)any Assistant Provident Fund Commissioner

Q28 ) What in case there are workers involved as Contract labour ?

Ans : It is the responsibility of the Contractor to deduct the PF and submit a statement to the Principal Employer in the prescribed format by 7th of every month. The Company becomes the Principal Employer would be responsible for the PF deduction of the workers employed on contract basis.

Q29 ) Are the persons employed by or through a contractor covered under the Scheme ?

Ans : Persons employed by or through a contractor are included in the definition of “ employee ” under the Employee's Provident Finds Act, 1952, and as such, they are covered under the Scheme.

Q30 ) In case the Contractor fails to deduct and submit the PF amount from the contract workers then what is to be done ?

Ans : The Company being the Principal employer is responsible for the PF to be deducted from the Contract workers as well. In case the Contractors fails to deduct and submit the PF dues then the Company has to pay the amount and can later on recover the amount from the Contractor.

Q31 ) Could the employer be punished in case the remittance of contribution by him is delayed in a Bank or post office ?

Ans : Employer cannot be punished or penalized in case there is a delay in the remittance of the contribution on account of delay in Bank or post office.

Q32 ) What happens in case there is a salary revision and a raise in the basic salary of the employee and arrears need to be paid, Do we need to deduct PF from the arrears as well ?

Ans : Arrears are considered to be emoluments earned by the employee and PF is to be deducted from such arrears.

Q33 ) Is it possible for an employee to contribute at a higher rate of interest than 12 % ?

Ans : Yes, if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12 %.This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.

Q34 ) What is the interest on the PF accumulations ?

Ans : Compound interest as declared by Central Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.
10th November 2008 From India, Solon
Thank you very much. I find the info on PF very relevant, useful. I will be thankful to you if you can please sent me such FAQs on different acts of IR. Regards Sarit
13th November 2008 From India, Thana
Thank you. I always scare to read or to learn about PF, but ur material help a lot in learning the concept of PF. I want some information about Payroll in HR regards geeta:confused:
14th November 2008 From India, Hyderabad
Dear Mr PBS,
It is very valuable to every HR Executive. I have a small doubt (i.e.), if Contractor has not paid PF contribution to his worker, then the Principle Employer has to pay. if the Prl.Employer has also not paid,what are the consequences? Pl. give reply to this mail
Murali

24th December 2008 From India, Hyderabad
Can Anybody help me for a declaration format for keeping the company assets with the employees Eg:- Cars,Car RC Books, Laptops,mobiles etc
23rd March 2009 From India, Mumbai
Thank u for the valuable information.
Also tell me what is to be done if the Ex-Employer does'nt bother to revertif u havesent mails for Form No. 16 for Returns Filing purpose?
We were also not provided with Salary slips, and nw want the Form No.16.
Guide me on this matter.
24th March 2009 From India, Pune
Mr. Pawan,
Tell me something bout ESI also as we have no. of Questions asked on PF & ESI for Interviews in HR & Admin.
I have many more questions to ask u...... :)
And will do that , hope u wont mind.
24th March 2009 From India, Pune
Excellent... Is there such an FAQ for ESIC also ?? Would really be grateful if that is posted by the senior members
24th March 2009 From India, Surat
Hi,
Can u guide me on an issue.
I was wrking in a small Co. a few months back. Then I resigned due to certain clashes in the Co.
Nw I want the Form No. 16 frm the Employer, and accordingly I wrote a mail to the A/c. head but she's not bothering evn 2 acknowledge to the mail, and with this attitude of hers I find rare chances of getting it.
Hw can I demand for the Form No. 16 as it my right to get for Filing the Returns:?::?::?:
We were also not given Salary slips. So nw wat is to be done?
Mail me the solution at
24th March 2009 From India, Pune
Excellent, Mr. Pawan Kashyap. Ur info has really helped me getting inside knowledge of PF:-P
24th March 2009 From India, Hyderabad
Thanks a lot sir for your best information about pf act. Sir actually i also want to know something about excise rules and regulations. Pls help me raj chauhan 3-09873667077
25th April 2009 From India, New Delhi
Hi all,
A Contractor takes contracts from Some Corporates & delegates it to sub - Contractors, While making the Payment to the Sub - Contractor ,the Contractor makes a deduction for the Provident Fund A/c & Employee Stock OPtion PLan on behalf of the Labours. Is this Valid ??? & If so please shoot out the Evidence that has to be provided by the Contractor for making the Payment to Provident Fund A/c by the Contractor as per the act.
Can u pls Send me ur Views ????????????:-D
11th May 2009 From India, Madras
hi, can any one forward me the PF form to remit my pf amount from the dept.
my last employer is in bangalore and i am in Noida; can i get the form here and send it across; is there any difference in forms between Bangalore and Noida???
It is bit urgent.
Thanks in Advance
15th May 2009 From India, Delhi
HI!!! Pawan Kashyap Can you please tel me the advantages & benefits for a employee of having PF:icon13:
3rd June 2009 From India, Bangalore
Hi am sachin from jaipur I resign from my previous company in October 2008 and I start working in another company. Now I like to withdrawal my PF amount and now its july 2009. Please Let me know is there any time limit to withdrawal PF amount necessary before that? How much longest time I can preserve my PF amount in my PF account and pls tell the process of withdrawal.
Thanks
2nd July 2009 From India, New Delhi
we have some employees in contract for one year, can we deduct pf if yes why if no why what is administrative charge in pf what is the percentage
2nd July 2009 From India, Calcutta
Dear Sachin
For withdrawal of PF You will have to apply in Form19 get it signed by your last organization and send it to PF organization- where the account is maintained.
If you wouldnt like to withdraw the PF amount u can transfer the PF to the present organization PF account ( alloted to you)
The forms are available in The provident fund organizations website...
For any further details enquire in the PF office
2nd July 2009 From India, Bangalore
useful massage, but i want to know that what the benfit gets by a family after the dath of an employee
7th August 2009 From India, Delhi
hi, i need some details information abut the unclaimed money of provident fund were it is utilise and who is the atuthority to do so.
9th December 2009 From India, Dhanbad
Dear all,
Kindly let me know whether employee will get full part of PF amount (Employee/ Employer Contribution) if he resigns after 10 years continues services with the same organization.
Regards
Janardhan


27th March 2010 From India, Bangalore
Thanks good information but on more information
Kindly let me know whether employee will get full part of PF amount (Employee/ Employer Contribution) if he resigns after 10 years continues services with the same organization.
Best Regards
Janardhan
27th March 2010 From India, Bangalore
Hi,
It is learnt that in PF scheme, there are various loans are available and number of benefits are also available in the scheme. Kindly narrate the procedure for apply for the above loans and what is the eligible period and how much balance service should required to apply for the same i.e for loans.
Kindly forward the details description.
Regards
rns
3rd May 2010 From India, Mumbai
In my company, both the 12% contribution is beared by the employee and its unlimited PF. One of our employee doen`t want to opt for PF but Management declined his request. Please tel me whether its legal in such case?? Employee must have an option. And after 3 months pf account is not given to me. I am afraid that my money should not go in drain. PLEASE HELP ITS URGENT
9th May 2010 From India, Bellary
In my company, both the 12% contribution is beared by the employee and its unlimited PF. One of our employee doen`t want to opt for PF but Management declined his request. Please tel me whether its legal in such case?? Employee must have an option. And after 3 months pf account is not given to me. I am afraid that my money should not go in drain. PLEASE HELP ITS URGENT
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more at https://www.citehr.com/131452-faq-pr...#ixzz0nPuxJ5iC

9th May 2010 From India, Bellary
Dear PBS,
Can you provide me one detail if one employee has left the organization and he has not withdrwan his pF amount after 1 year - is he eligible for interet rate on his contribution during his service?"
10th September 2010 From India, Delhi
Very useful info ,many of my doubts are cleared now ........thnk u so much for sharing... Looking for more posts like thsi frm u
26th October 2010 From India, Gurgaon
Hi
Can a married woman nominate her mother as a nominee in PF if her father is in service pls advice in this issue,
And if any body has not withdrawn the PF from his or her previous two companies then what are the ways to get the amount from both the companies
Cheers
Rashmi
27th October 2010 From India, Mumbai
Its really grt to get such precise inputs ..easy for everyone unlike lengthy info whic makes it diffult to understand...Looking forward for more short n easy info..:)
27th October 2010 From India, Mumbai
Hey,

My name is Shyamala. I joined in a KPO job in june..and subsequently left that job in 2 weeks owing to personal reasons. I did not submit a formal resignation letter as my employer didn't ask for the same. I just mentioned I'm leaving to the HR orally and he just said he's terminating me from service. I didn't have a bank acct opened during this period & hence, I didn't receive a salary for these 2 weeks either. I've been unemployed ever since.

My query is:

I'm aware that the PF number alloted to someone is permanent - it cant be changed even when you move from 1 company to another. I'd signed in the Employee PF enrollment form during the 1st day there (formal induction procedures). Now what will be it's status? Will the HR cancel it, as I have left their organization? Will this PF number pose a threat to me and reveal my old employer, when I join another company later? I'm a fresher engineering graduate and I'm quite tensed regarding this situation.

I hope someone can resolve my query. Thanks in advance. :)

Best regards,

Shyamala.
29th October 2010 From India, Velluru
Shyamala..
First of all you should have relieved from the company by formally submitting resignation letter. Though your personal reasons would have held up not going to office, you would have mailed either. A HR cannot accept any employee's resignation orally, coz he must be answerable to his boss.
You must be looking for some other job, which reveals clearly from your question. If your personal reasons are over, you might have reapplied to the same company.
Reasons apart, PF number is not permanent. It changes whenever you switch over to another company. You can either close the PF account if you are not employed for the next two months or you can transfer the PF account to the new company you have joined. Having not received salary for your tenure, your PF account would not been activated.
Regs,
Arun
30th October 2010 From India, Madras
Thank you Arun.
That was a precise answer. yeah, I'm searching for a job now.. I didn't submit any written letter because my boss/HR had made the decision of terminating me even before I could ask if a formal statement was required. And I'm not going back to that company ever again! So its alright even if they black-list my profile for all future references. It's good to hear that my PF account wouldn't have been activated... Many thanks for resolving my query.
regards,
shyamala.
31st October 2010 From India, Velluru
Dear Mr/Ms.PBS,
I had a query, you have been stated that, "Brother cannot be nominee as per the act" in Question no.8,
Kindly post me the reason for that.
Why should "Brother cannot be nominee as per the act"??
31st August 2012 From India, Madras
i worked in a concern for the period of 3 months and 23 days, in which contribution for PF from both the ends is Rs.1200. At last, after the PF account closure and withdrawal, i received only Rs.7340. On enquiring regarding this with my previous concern\'s HR, they said PF authorities will deduct administrative charges if one quits before 6 months period, so that the amount is this much only. Is that so? If so, how much they will deduct as charges?
11th December 2012 From India, Hyderabad
Dear Sir,
My previous employer has not remitted the PF employee share & also the employer share from past 1 year (Oct 2011 to Oct 2012) to the department. The company is now closed. Even after several 7A issued by the department, the employer is not in a situation to pay the PF amount. It has already become 6 months of my resignation. Since the factory is closed & no officer is working over their, I had not been issued duly filled Form 19 & 10C along with 3A, Form 5 & 10. My question is since the employer has not remitted the amount as said above, can I apply for Claim of PF? If yes, what are the necessary steps I should follow to get the claim? Without remittance from the employer, will the PF office settle my account till the date of my resignation? Can any body help me in this issue?
1st April 2013 From India, Bangalore
Is it compulsary for higher salary staff above Rs.6500 pf should be deducted or not. for example: if salary would be 50,000 Regards Pradeep
15th June 2013 From India, Delhi
My colleague who is an Austrian worked in India and he left the job and country. His settlement came to his bank account after he left the country. Unfortunately the bank returned the cheque as it became a non operative account by that time. How can he claim the money now? he does not have an account in India and he is not working in India. Can his settlement be made to get paid abroad?
23rd September 2013 From Qatar, Doha
Dear all, your posts are really helpful... i have a doubt that are the rules of pf are same for companies under factories act.???
5th December 2013 From India, Mumbai
My querry is that whether any eligible employee can individually apply for loan from his pf account ? Consent from owner is required or not?
17th November 2014 From India, Delhi
Hi, I need to ask the limit of the employee if he/she want to deduct full part of his/her basic salary for PF?
14th August 2015 From India, Delhi
Dear All, everything is fine as per the questions mentioned above. However, there have been several amendments made in Provident fund effective from financial year 2014-15 and Assesment year 2016-17.

Like Question no 2 and 3= wage cieling limit of Provident fund has been raised to Rs 15000 (wef 1 sep 2014)
Q4: An employer cannot force the employee to be a part of Provident fund if his basic salary +DA is more than Rs 15001 and until he has specified the same in their HR policy.
Q5: As per the new amendments took place on 1sep 2014, new employees who gets registered fro Provident fund. No amount gets deducted towards EPS(8.33%) and EPF(3.67%). Its total of 12% towards both employers and employees. And even an employee can now withdraw total of 24 % even if he has worked for the company from 0 months -9 years.
However, withdrawing PF before 5 years of service and that too of sum equal to or more than Rs 30,000 will attract tax. But if the employee submits form 15G/15 H along with his pan card, no tax will be deducted.
Q.7. Form no 13 R is now been replaced by new form called Form 11(N) in case the employee has got a UAN number for transferring PF from one company to another.
In addition, continous service in an employment is considered where in the employee has completed 240 working days in a year. though this applies to rule of calculating gratuity however its the same for other statoury benefits.
EPFO has no responsibility to send any annual statements to individuals. However, to check the PF balance, it is easier to go on to the PF website (www.epfindia.com) to check the balance.
Q 33. VPF is an account only meant for employees and not for employers. IF an employee feels to contribute any thing extra towards his savings which (8-20%) he can do so by opening VPF. But no employer can made contribution to such VPF and such is not mentioned in the PF Act 1952.

Hope this clarifies.
15th August 2015 From United Kingdom, Leeds
FAQ;s on ESI can be very well and easily found on Ebook avaialbe on the website www.esic.nic.in................ you will be able to find all the queries related to ESI in this booklet.
15th August 2015 From United Kingdom, Leeds
Hai, I need information, If any employee resign the company Who have to submit PF form employee or employer?? After submitting the form if any rejection occur then?
8th December 2015 From India, Hyderabad
Sir/Mam,
I left the company July'15 and I applied for my PF in Jan'16 by my left company but still I did not get any update and my pf amount.
When I contact to my previous company they said We forwarded your PF application to PF office but today 14 Apr I didn't get any PF amount.
I have also checked in PF site but site showing no records found.
Please guide what should I do?
Thank You,
Vimal Tiwari
14th April 2016 From India, Mumbai
Hi Vimal,
Pls approach your PF office personally with your pf number.
Check whether they got your application or not.
If yes check whether they need any additional documents and provide them.
If no contact employer from PF office and ask for acknowledgement copy.
Threat them stating that you are going to complain that they are not submitting the claim without proper reason.
For added info reach me # tqmmohan@gmail.com
14th April 2016 From India, Chennai
Mr. Pbs,
Thank you so much for the valuable post. Good work. Keep up pls..
18th August 2018 From India, Hyderabad
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