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Rajeda2006
Payroll
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Dear all, I have been working on epf from the last 3 months and i had an general queries regarding what is epf,eps and pension fund. Help me out plzzz... Thanks in advance.
From India, Hyderabad
Both EPF and Pension fund operate under respective Schemes namely the P.F Scheme 1952 and the Pension Scheme 1995 within the frame work of the P.F and Miscellaneous provisions Act 1952. Both the funds are meant to provide financial support to the emlployee when they cease to be in servcie. It means it is a savings for the rainy day in the life of an employee. Both Provident Fund and Pension Fund are constituted by the contributions from the employer and the employee at the rates stipulated under the Act and the Scheme.However in the case of pension,it is constituted only by a portion of the employer's contribution. While P.F is available in lumpsum, pension is granted in instalments every month calcualted by a prescribed formula.

This is only an introduction to set the ball rolling for some one who is working on P.F. I suggest you to go through the provisions as it is necessary for any HR dealing with statutory complainces to understand them by himself in depth so that he will be in a better postion to comly with requirements and serve the employees.

B.Saikumar


From India, Mumbai
Dear,
There are two major benefits designed by Govt through the EPFO to provide a financial security to the Contributer. Hence, there are two funds one is Provident Fund and another is Pension fund. And the amount you are contributing and the Employer contributing for you is going to both funds as mentioned below:
Employees Contribution i.e.12% of Basic Salary totally goes to Provident Fund
Employer Contribution for you (except Admn. Charges) i.e. 12% of Basic Salary divided as 3.67% and 8.33%
3.67% goes to Provident Fund and 8.33% goes to Pension fund.
It means every month as a total of 24% of your earned basic salary depositing in your PF Account
Thank You.

From India
Accounts - PF
There are five accounts
1) AC 1 (PF)
(BA+DA) 12%  Employee share
(BA+DA) 3.67% Employer share
2) AC 2 10 (Pension)
(BA+DA) 8.33%  Employer share
3) AC 2 (Administration Charges)
(BA+DA) 1.1% Employer share
4) AC 21 (EDLI -Employees Deposit Link Insurance)
(BA+DA) .5%Employer share
5) AC 22 (EDLI Administration charges)
(BA+DA) .01% Employer share
Note –If the BA+DA is more than 6500, then the calculation for AC 1(employer Share only) and AC 10 is as follows.
6500*3.67 i.e. 239
6500*8.33% ie, 541 common for all salary, which is above 6500.
Regards,
Rajeshkumar.B

From India, Bangalore
Shrikant,
what is the basic salary? If the basic exceed more than 6500 then the person will be excluded from pf Act means as per employee's wish whether he wants to invest in PF or not. But if the basic salary is less than 6500 then pf is mandatory to him from day one of his service.
Regard,
jyoti

From India, Kolhapur
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