Employer's Contribution To Pf - Ppt Download

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

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

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

Hi
I suppose it is 8.5% is interest which is paid at the time of withdrawl from pf account.
Prabhakar Rao
Head - HR

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

Trisha,
well said and clear presentation.
Keep posting!!
Regards,
Saravana
Executive - HR

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

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

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

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