Dear swami,
P.F (PROVIDENT FUND): -
1) P.F. Deducted on Basic + D.A + Cash value of Food Allowance @ 12%. It is a statutory deduction. D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
2) Company pays P.F on either actual basic or Capped Basic. Capped basic decided depend on Company rules it is not restricted. It’s applicable those employee basic exceeds Rs. 6500/- only.
3) Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund.
4) Employer also needs to pay additional charges on every month over and above PF Company Contribution. The break up is
1.1% P.F Administration Charges,
0.5 % on Employee Deposit Linked Insurance (E.D. L.I) and
0.01% E.D.L.I Administration Charges.
5) The company needs to file Monthly Returns and Annual Returns. Company have to submit every moth duly paid P.F Challan, Form 12A, Form 5 (additions) and Form 10 (deletions) and Nomination from 2 (newly joined employee details). In annual Return we need file Form 3A and 6A along with the details of Annul PF Challan payment details.
6) The employer needs to collect, certify and submit the Nomination and Declaration Form in Form-2 of every new joinee to the scheme along with the monthly report.
7) P.F. Monthly payment due date is 15th (with grace up to 21st) and Annual Return due date is 30th April of every Year as per P.F authorities treated one year is from 1st March to 28th February.
8) Any employee who wishes to transfer his old company’s PF balances
He can transfer his PF Current A/C with using Form 13 signed by current employer (who he joined new company employer) and old employer to submit Form 3A to P.F office. Employee P.F Number will be change of every company.
9) Any employee who wants to N cash his P.F amount he can draw the total amount with using of Form 10 C & Form 19. Form 10 C is E .P.F & Form 19 is F.P.F