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Hi all, I would like to know if there is any Bifurcation in PF contribution that is done by employer, Bsides 12% of basic. With regards. Swarali
From China, Beijing
Dear Swarli

Greetings.

You have raised a good question.

The employer`s share bifurcated in to two portion as Pension scheme contn and employees share. as follows.

Pension fund scheme contn 8.33%

Employees contn 3.67%

Hence an employees receives 15.67% of the total 24% PF contn(Both employer and employee) for which every year annual slips will be provided with interest @ 9.5% per annum.

When an employee resigns this 15.67% can collected from the EPF office.

and for the pension fund, he has two options.

Option A : Scheme certificate, where an employee can accumulate from two or three employers scheme certificates totalling to ten years will make him eligible for Pension after retirement at 58 years.

Option B : Employee can get the accumulation of pension fund which is calculated based on the salary and no of year of service. This amount will be disbursed by way a another cheque which is almost same as the amount one deposited in the PF account.

Any clarifications, I am here to help

Cheers

Trisha

HR Professional

From India, New Delhi
Hi Trshaji,
You really cleared my doubt to reat Extent.
But Is this PF contribution is the only part of the pension amount paid to the emplyees.As i was considering it as totally different benefit from PF.
request you to clarify.
With regards,
Swarali
From China, Beijing
Hi I suppose it is 8.5% is interest which is paid at the time of withdrawl from pf account. Prabhakar Rao Head - HR
From India, Delhi
Dear Swarali
Greetings.
The pension amount kept separate in Pension fund (recovered from employer contn @ 8.33%) and equal amount contribution will be paid by the Government for the fund. Any death or retirement of an employee pension will be paid from the fund to their nominee`s bank account till their existence.
Hope I have cleared your doubt
Cheers
Trisha
HR Professional

From India, New Delhi
Trisha, well said and clear presentation. Keep posting!! Regards, Saravana Executive - HR
From India, Madras
Hi Trisha
In case of Pension fund is accumulated for more than 10 yrs. we are not allowed to withdraw that amount of 8.33%. In my case it happened.
In case required to withdraw you have to prove that, you are unemployed, or u have started the business or you have to attach the Visa copy if going abroad. any of these u have to submit along with form 10 - c for withdrawl of the pension amount.
Rgds
Prabhakar Rao
From India, Delhi
Dear Rao
Greetings.
I fully agree with your views. This is the reason why PF authorities will not settle any one`s account before 60 days of their relieving. Like wise, Pension people will ask for a certificate / declaration that the applicant is not employed in any of the company where PF is applicable or doing his own business to take care of his life.
Cheers
Trisha
HR Professional

From India, New Delhi
Hi Trisha Good afternoon. I suppose after 30 days from date of leaving u can apply for withdrawl and not 60 days Rgds Prabhakar Rao.M
From India, Delhi
Great views aleardy exchanged.

I would only like to add that EPS(Pension Fund) cannot be withdrawn. It can be commuted to 1/3 of the amount and the rest will be paid as monthly pension.

Providend fund can be withdrawn if the employee remains unemployed for 3 consecutive months.

Below i am listing few cases where PF can be withdrawn:

Member is entitled to withdraw full amount of PF:

(A)

On attaining the age of 55 years at the time of termination of service.

On retirement on account of permanent and total disablement due to bodily or mental infirmity.

On migration from India for permanent settlement abroad or for taking employment abroad

In case of mass or individual retrenchment

(B) A member can withdraw up to 90% of the amount of Provident Fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuating whichever is later.

Partial Withdrawal/Advances

A member of Provident Fund is allowed non-refundable advance for the following contingencies:

For acquiring dwelling site or house

Advances in special cases such as lockout in factory/establishment for a period more than two months

Where a member has challenged the retrenchment/dismissal by the employer in a court of law

For treatment of illness

For marriages or post matriculation education of the children

Under abnormal conditions such as damage to movable or immovable property by calamity of exceptional nature

Financing of member’s Life Insurance Policy

Regards,

Nilendra

Dear Swarali, For ur information, pl find attached herwith a contribution under EPF & MP Act, 1952 by an employee and employer. Regards, Ashutosh Chaturvedi
From India, Mumbai

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File Type: ppt epf___mp_act__1952_386.ppt (45.0 KB, 288 views)

Dear Trisha,
I would appreciate if you could give me more details about PF and its actual administration etc or could give em a source from where I can collect the desired details related to PF.
Regards,
Meghamadhulika
From India, Bhopal
Dear Madhulika
Greetings
There is PF website available in the following link
www.epfindia.nic.in
Hope this website would serve you better
Cheers
Trisha
HR Professional

From India, New Delhi
Dear Swarali
The 8.33% in pension fund is subject to ceiling of Rs.541/- . In other words Max. Pay ceiling is Rs.6500/-. However you can contribute over and above 8.33% for higher rate of Pension. The rate of Interest on pf is decided by Board of Trustees of Provident Fund. In case of Exempted establishment, they can give higher rate of interest.
Regards,
Ravi
From India, Nasik
As far as my knowledge is concerd regarding EPS you cannot contribute more than 8.33% of 6500 even though PF is managed by trust and it is deducted on actual Basic+DA.
For EPS salary is considered as if its 6500 only if salary is more than 6500 and if less than 6500, its taken on actual.
Regards,
Nilendra

Hi I suppose it’s minimum 7 yrs of contribution should be there for withdrawl for construction of house. and 5 yrs for daughter’s marriage. take care Prabhakar Rao.M
From India, Delhi
Hi Prabhakar, I think trisha is right, the eligibility of submitting the form is 60 days after the date of leaving. Jai HR-Professional
From India, New Delhi
Dear All, All this discussion was very enlighting and reallu had added lots of value to my knowledge. With regards, Swarali
From China, Beijing
hi
as per p.f act employer paid total contrubution 13.61%
employee share 12% is transfer to a/c no :1
Employer share 12% 3.67% to a/c no:1
8.33% to a/c no:10
EDLI 0.50% TRANS TO A/C NO:21
EDLI ADMI CHARGE. 0.01% TRANS TO A/C NO:22
admi chrges.. 1.10% TRANS TO A/C NO:2
chitti babu
From India, Mumbai
Dear Swarali employer corobution 8.33% amount 541/- or geter than 541 the extra amount aotometically transfer to 3.67% share chitti babu
From India, Mumbai
Hi Prabhakar,
Trisha is rightly informed that one can apply for pf withdrawl after 60 days of date of leaving.
And the current interest rate on pf amount is @ 8.5%.
And I completely agree with Mr. Chitti.
Regards,
Sashmita
From India, Delhi
HI, TRISHA
GOOD MORNING
WHAT ABOUT THE CONTRIBUTION FROM THE GOVT. SIMILARLY,
CAN YOU RE-CHECK ABOUT THE REATE OF INTEREST. MOREVER, THE INTEREST RATE IS DECIDED EVERY YEAR BY THE BOARD OF TRUSTEES BASED ON THE INCOME GENERATED OUT OF THE INVESTMENTS ETC.
WITH REGARDS
ASHOK KARATH
From India, Gurgaon
Govt dont contribute anything towards EPF apart from the interest given as per the prevailing rate of interest. Currently the rate of interst is 8.5% pa for the FY 2006-07. Regards, Nilendra

Hi thr Employers contribution - 4.75% Employees contribution - 1.75 % And its applicable to salary of 10000/- *(It was earlier 7500/- now amended) * Need to confirm Regards Yogesh
From India, Pune
Hi Can u explain the pension plan of employee and one of my new staff with drwan his PF Form past 9 years worked concern. If have any changes to recontinue his pension. With Regards Sasi
From India, Coimbatore
Dear Yogesh, What you have written is for ESI contribution and not PF Contribution. Dear Sasikumar, your question is not at all clear. Can you pl explain it again Regards, Nilendra

YA SORRY IT'S 60 DAYS ONLY FROM DATE OF LEAVING.( AS PER ACT)
But one thing i would like to say that i my self submitted lot applications after one month from the date of leaving of the employees, they received the amount .
thanks
Prabhakar Rao.M
From India, Delhi
Hi All
Trisha is right . Minimum period required is 60 days from the date of Leaving the service for claiming the PF withdrawal when the person is not employed anywhere except his own business. However he can transfer the Account after the opeing of new PF account with new employer.
Thanks
Aparajita
Executive HR
From India, Guwahati
Hi Sawarli,
As per my knowledge the employer contribution towards PF is 13.61%of basic.
detail are as follows:
A/c I Total of employer and employee contribution (3.67% +12%)
A/c II 1.1% of wages
A/c X 8.33% of wages.
A/c XXI .5% of wages.
A/c XXII .01% of wages.
Thanks and Regards
Vikas Kumar
From India, New Delhi
Hi all, Good contributions from all! Thanks alot... keep raising queries...so that new members like me will learn new things! Regards Veerendra :wink:
From United States
Dear Ashutosh Greetings. The approximate time to settle PF and pension amount will be not more than 30 days provided the employer remitted the contribution in time. Cheers Trisha HR Professional
From India, New Delhi
hi

My Dear Trisha

Good le to spell regarding pf..and u know our pf interest is 8.5% not 9.5% for the year of 2006 to 2007 and 2007 to 2008..

EPF RATE OF INTEREST FOR THE YEAR 2006-07 --------------------------------------------------------------------------------



16:25 IST



The Government has accorded its approval to notify the EPF rate of interest for the year 2006-07 as 8.5%.

All the RPFCs have been instructed to immediately give effect to the above and issue annual statement of accounts for the year 2006 at the earliest possible time. The Chairman CBT, EPF and Minister of State( Independent Charge), Labour and Employment has directed that issue of annual accounts for the year 2006-07 is required to be done on war footing.

The EPF(Employees’ Provident Fund) Scheme, 1952 requires that the interest shall be credited to the account of each member at such a rate as determined by the Central Government in consultation with the Central Board of Trustees(CBT).

The CBT which met on the 23rd of July 2007 to consider the proposal for determination of rate of interest payable to the members for the year 2006-07 had recommended interest at 8.5%.



see this link

http://epfindia.com <link updated to site home>

Regards

Nagendra

Hyderabad
From India, Hyderabad
Employer's contribution to EPF is to be remitted as follows:

8.33% in Pension Fund in Account No 10 and the remaining,ie, 12-8.33=3.67 % in Account No 01 along with Employees share of 12%.
Besides this, the employer has to remit the following also.
1.1% of the total Wage/ salary to account No 2 towards administrative charges
0.5% towards Employees Deposit Linked Insurance in A/C No 21 and
0.01% towards administrative charges of EDLI in A/C No 22.
Regards,
Madhu.T.K
From India, Kannur
Hi Sashmita
I already aplogised for the same. it is after 60 days only one can apply for withdrawl of pf. and already, said that it is 8.5% interest on the amount deposited with pf office.
cheers :roll:
Prabhakar Rao.M
From India, Delhi
Dear Yograj
I think you have wrongfully written contributions for ESI and not for EPF. Regarding PF 12% employee contribution and 12% employer contribution. Pension fund to be maximum of Rs.541/- Slab for deduction of PF is Rs. 6500/- i.e. people having basic salary less than Rs. 6500/- pf deduction is manadstory. It is expected that this slab may go upto Rs. 10,000/- as in case of ESI.
Regards
Govil Nanda :lol:
From India, Delhi
Hi Madhu,
Can you please let me know about acc/no:1,Acc No:21,Acc/No:22
I mean to say,does the each and every employer has to create all these accounts at pf office...can you clarify regarding this.
Rgds
Saritha
From India, Bangalore
Hi Nilu
Thanks for your reply.
In my company we appointed one Netwrok Administrator on last month. Before he join here he is worked at madurai from past 9 years and at the time of left from there he surrendred his P.F. Now he feel to recontinue the P.F same A/c.
One more confuse for me - he is eligable for pension for that surrenderd A/c or not?
From India, Coimbatore
The information provided is really worth for me. Please keep on posting this type of issues which would be useful to all the unknown employee like me.
Keep on going....
Regards,
Sandeep Kadre
9850839153

Dear Urvashiji
Greetings.
Option B is nothing but refund of your contribution to Pension fund in the form of Cheque sent to your bank account. In option A you can trace your contn and cross check with your annual slips in Form 23 provided by EPF Office every year. But in option B the refund is based on the no of years of service and last salary drawn and a factor determined by Pension authorities, this amount will be almost the same as the amount deposited in Pension account.
Cheers
Trisha
HR Professional

From India, New Delhi
hi,
as per PF act, PF is mandatory if the Basic+DA is less than or equal to rs.6500 p.m. now, if in the next year,the employee's Basic+DA exceeds Rs.6500p.m, can he/she opt out of the PF account?
Our PF consultant says once a PF account is opened, it cannot be stopped until the employee quits working irrespective of whether its mandatory or not.
Also, if the employer contributes for PF for employees whose Basic+DA is more than Rs.6500p.m, will that amount still be exempted from tax?
pl clarify...
From India, Hyderabad
Account Nos 01,01,10,21 and 22 are maintained by EPF Organisation to which the employer has to credit the amounts in TOTAL in respect of the entire employees. It has nothing to do with individual employees. However, you have to prepare a separate statement showing individuals salary, Employees contribution to EPF, Employer's contribution (8.33%) to PF and EPF (3.67%) in respect of individual employees so that preparation of contribution crad and annual statement will be easy. Deposit of the amount will be made in total for one month.

Once an employee is covered under the scheme, he continues to be covered irrespective of his salary.

Presently most of the firms do cover employees irespective of their starting salary, though only those whose salary AT THE TIME OF ENTERING is not more than 6500 is covered. In the case of ESI, however, when the salary exceeds 10000, he becomes out of coverage from the next contribution period. That is, if salary exceeds 10000 in May, then till Sept, he has to contribute the prescribed contribution, ie, 1.75% and employer too at 4.75%, but from the next contribution period onwards, ie, from Oct he becomes uncovered.

Regards,

Madhu.T.K

Regards
From India, Kannur
Account Nos 01,01,10,21 and 22 are maintained by EPF Organisation to which the employer has to credit the amounts in TOTAL in respect of the entire employees. It has nothing to do with individual employees. However, you have to prepare a separate statement showing individuals salary, Employees contribution to EPF, Employer's contribution (8.33%) to PF and EPF (3.67%) in respect of individual employees so that preparation of contribution crad and annual statement will be easy. Deposit of the amount will be made in total for one month.

Once an employee is covered under the scheme, he continues to be covered irrespective of his salary.

Presently most of the firms do cover employees irespective of their starting salary, though only those whose salary AT THE TIME OF ENTERING is not more than 6500 is covered. In the case of ESI, however, when the salary exceeds 10000, he becomes out of coverage from the next contribution period. That is, if salary exceeds 10000 in May, then till Sept, he has to contribute the prescribed contribution, ie, 1.75% and employer too at 4.75%, but from the next contribution period onwards, ie, from Oct he becomes uncovered.

Regards,

Madhu.T.K
From India, Kannur
Hi Tarsia How are you doing?? I am very much confuse with withdraw of pension fund like How many year of services we need to withdraw our pension fund. And effect of last drawn salary. Regards Akhil
From India, Kota
Thank you very much for such knowledge information is it possible to get the pension even if we are changing different orgs all including 1o years ciontribution. Regards, Raghunath.
From India, Visakhapatnam
Dear Raghunath
Greetings.
As i mentioned in my initial post in option A, when you work for a orgn for 2 years you will get scheme certificate in lieu of your withdrawl. If you work for more no of orgn you will certainly get scheme certificate for the service you rendered in that orgn. Hence if you can collect 10 years of scheme certificate before your retirement age, you will get pension after your retirement.
Hope this is sufficient for your question.
Cheers
Trisha
HR Professional

From India, New Delhi
Hr Fraternity,
It was a great session for me. Learned a lot from the discussion. Recently, I was asked revise our compensation structure. All the inputs from this discussion helped me through out. Thanks to all who contributed the info.
Regards
Indulekha
From India, Bangalore
Normally it takes 30 days time to submit withdrawl forms in PF office and PF officials will take one month time to credit concerned account. Sathish

Hi,
There is a bifercation of employers 12% pf contribution is as under :
8.33% ---------- is for pension fund---this goes in a/c -10
3.67% ---------- is for Employees pf-- this goes in a/c-1with empolyees 12% contribution.
Hope you understand.
regards,
Ravi
From Germany, Lohmar
Hi all,
Can anyone solve my problem?. I was working with a firm where my contribution and the employer contribution of PF was deducted from my salary. After working for 7 months I resigned the company. So will I get back my PF. Please tell me what forms do I want to get filled and also define me a way or procedure to obtain my claim if my employer doesn't sign the Employer signature column in PF form.
From India, Mumbai
Hi Thrisha,

Thanks for your valuable information.

Please can you provide the clarification on below issues.

1.When I transfer PF amount from one state to another state PF office will charge any amount.

My company Opened account in Hyd after 14 months i transferred to Chennai and after 5 months again transferred to Pune office.

Now when I want to withdraw the PF amount they given very less amount

My Contribution for the PF is Rs 52000 (12%)

My Employer contribution for the PF is Rs 16325 (3.66%)

My Employer contribution for Pension Fund is Rs 37157 (8.33%)

When I withdraw the PF

I got only 62573/- (One cheque) and another one 6539/- and the amount direct credit to my account.

Now my question why got the less amount? there are any calculations?

Can I request PF office to provide complete statement regarding my PF account?If yes whom i need to request?

They will send any statements to my address regarding complete information about PF amounts?

Please provide clarification above issues.

Thanks in advance.

Ravi
From Singapore, Singapore




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