Can anybody please let me know the difference between EPFO and PF trusts.
From India, Mumbai
19From India, Mumbai
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Dear Sreekanth,
EPFO means Employee Provident Fund Organization, an autonomous social secury body of central government deals with Collecteting, maintaining and disbursing amounts to Employees of the covered organizations/ establishments. As per the act, those establishments recruits 20 or more employees shall have to covered under the act and they have to deduct 12% contribution from Employees wages/salary(Basic+DA+retaining allowances if any) on montly basis and it has to be remitted to EPF fund through notified banks along with employes equal share. all deductions made on montly basis has to be consolidated and returns to be submitted to Regional Provident Fund Organization. Those establishments who follows above mentioned formalities arecalled un-exempted eatablishments.
Any establishments who wants exemption in remitting contributions to central govermnets fund accounts on monthly basis may approach for the same. Those establishments who seeks exemptions are called exempted establishment and they have to create a trust called PF Trust. PF Trust has to do the duties and responsibilities like EPFO.
Hope your doubt has been clear now.
Best regards
Chandrashekar
Bangalore
From India, Bangalore
EPFO means Employee Provident Fund Organization, an autonomous social secury body of central government deals with Collecteting, maintaining and disbursing amounts to Employees of the covered organizations/ establishments. As per the act, those establishments recruits 20 or more employees shall have to covered under the act and they have to deduct 12% contribution from Employees wages/salary(Basic+DA+retaining allowances if any) on montly basis and it has to be remitted to EPF fund through notified banks along with employes equal share. all deductions made on montly basis has to be consolidated and returns to be submitted to Regional Provident Fund Organization. Those establishments who follows above mentioned formalities arecalled un-exempted eatablishments.
Any establishments who wants exemption in remitting contributions to central govermnets fund accounts on monthly basis may approach for the same. Those establishments who seeks exemptions are called exempted establishment and they have to create a trust called PF Trust. PF Trust has to do the duties and responsibilities like EPFO.
Hope your doubt has been clear now.
Best regards
Chandrashekar
Bangalore
From India, Bangalore
Dear Chandrashekar I do aware of PF Trust do you know the formality to open a trust for a company because i am planning to do it so can you please help me out... Regards, Ramkishore
From India, Bangalore
From India, Bangalore
Dear Shri shreekanth.pr
EPFO is Employees Provident Fund Organization under the Ministry of Labour. PF Trust is a trust authorised by the EPFO to maintain provident fund accounts of employees of a firm / corporate body. Such a Trust has to open and maintain PF accounts of the employees, regularly remit pension contributions of the members to the concerned office of the EPFO, issue annual accounts slips to the members, disburse the amount of PF accumulations to the members on death, retirement, resignation etc. The Trust has to pay the Deposit Linked Insurance benefits to the members' nominees in the event of death of the members. The trust is also required to submit periodical returns / report to the EPFO for the accounts maintained by it. However, the pension is payable only by the EPFO. On receipt of applications in form 10-D from the retired/resigned employees or widows / widowers / children of the deceased members for pension through the PF Trust with details of remittances of pension contribution in respect of such account holders, the EPFO sanctions pension to the members of the PF Trust. For employees of firms who are not allowed to maintain their own PF Trust or who are not eligible to have their own PF Trust, the EPFO itself maintains PF accounts on receipt of data and remittances from the employers. The PF Trust may frame their own rules and regulations for maintenance of PF accounts but such rules and regulations are supposed to be based on relevant PF rules. A PF Trust has to give interest to the members at rate declared by the EPFO every financial year. To understand the differnce between EPFO and a PF Trust, you well imagine of a co-operative bank allowed to run banking operations by the Reserve Bank of India. Now think of EPFO in place of RBI and the cooperative bank in place of a PF Trust and the difference will be clear.
From India, Pune
EPFO is Employees Provident Fund Organization under the Ministry of Labour. PF Trust is a trust authorised by the EPFO to maintain provident fund accounts of employees of a firm / corporate body. Such a Trust has to open and maintain PF accounts of the employees, regularly remit pension contributions of the members to the concerned office of the EPFO, issue annual accounts slips to the members, disburse the amount of PF accumulations to the members on death, retirement, resignation etc. The Trust has to pay the Deposit Linked Insurance benefits to the members' nominees in the event of death of the members. The trust is also required to submit periodical returns / report to the EPFO for the accounts maintained by it. However, the pension is payable only by the EPFO. On receipt of applications in form 10-D from the retired/resigned employees or widows / widowers / children of the deceased members for pension through the PF Trust with details of remittances of pension contribution in respect of such account holders, the EPFO sanctions pension to the members of the PF Trust. For employees of firms who are not allowed to maintain their own PF Trust or who are not eligible to have their own PF Trust, the EPFO itself maintains PF accounts on receipt of data and remittances from the employers. The PF Trust may frame their own rules and regulations for maintenance of PF accounts but such rules and regulations are supposed to be based on relevant PF rules. A PF Trust has to give interest to the members at rate declared by the EPFO every financial year. To understand the differnce between EPFO and a PF Trust, you well imagine of a co-operative bank allowed to run banking operations by the Reserve Bank of India. Now think of EPFO in place of RBI and the cooperative bank in place of a PF Trust and the difference will be clear.
From India, Pune
The only condition for an exempted Trust is to provide equal or better benefits than the EPFO. Instead of the administration charges of 1.1%, 0.18% has to be remitted as inspection charges. Only PF will be handed by Trusts. EDLI may be continued with EPFO. If employer provide (not PF Trust) eaqual or better benefits, exemption may be granted in lieu of EDLI also.
Abbas.P.S
From India, Bangalore
Abbas.P.S
From India, Bangalore
CG state warehousing corporation HO Raipur(CG) Has maintaining PF of their employee by the pf trust but cgswc will be giving rate of interest on employee pf below the declare rate of interest by the EPFO. so employees of cgswc like me have suffering economic loss due to very less rate of interest given by the pf trust. Please guide legal advice to get rate of interest by pf trust of their employees.
From India, Bhilai
From India, Bhilai
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