Understanding Provident Fund: Differences, Transfers, and Exceptions Explained

Please correct me if I'm wrong, but as far as my knowledge goes, there are two kinds of PF: 1st: Regional PF 2nd: Private PF.

If I'm right, I would like to know what these are and what the difference is between the two. I would also like to know that if I change my job, can I link my previous employer's PF to the new one?

What are the steps I have to take to collect my PF amount? Also, is it necessary to have a PF policy? Can there be any exceptions where we don't maintain PF, with the amount being adjusted somewhere else?

Hi,

There are two types of PF in general: EPF - Employees Provident Fund. This is the one with which all HR people deal. The deductions are as follows: 12% from employees, 12% from employers, and 1.1% from employers as an admin charge (in some industries, it is 10% for both). You can contribute more, but the employer is limited to a 12% contribution of Rs. 6500/-; however, the employer can contribute more. The contribution of 8.33% of the 12% employer contribution is allocated to the Pension fund. Additionally, 0.5% is paid to the Insurance fund where you also earn interest.

PPF - Public Provident Fund: This is a provident fund where you make payments at the post office. It earns only interest. A similar scheme is applicable in the Defence services where your contribution has no limit.

Hi Khyat,

If you really want to know in detail about the provident fund, please put these words in the search bar, and you will get maximum information. Also, if you want, you can go through http://epfindia.nic.in/. I hope my guidance helps you.

Sapana

Hi,

Let me share with you my knowledge on P.F.

There are two kinds of P.F.

PF funds are managed by big MNCs and Public Sector companies, having trusts created to manage the P.F. contributions deducted from employees and the company's contributions to the P.F. fund. These trusts are exempted under the P.F. rules of the Government of India. To obtain exemption, the GOI has certain guidelines, and MNCs or Public Sectors are supposed to apply for such exemption.

In such cases, settlement of P.F. is done by the respective company.

In another case, those who don't have a PF trust are called un-exempted companies.

In this case, the contributions deducted from employees and the company's contributions are to be paid into the SBI or whichever bank through challans, and one copy of the challan needs to be submitted to the Regional P.F. Authority of the respective location.

The settlement of P.F. will be done by the respective regional P.F. office, and the claim needs to be routed through the company where he/she was employed.

Hi, our friends have given so many inputs. Really good work. At the outset, we can classify three categories in the applicability of employees' Provident Fund in different sectors:

1. EPF Scheme under the Office of the Commissioner Provident Funds
2. GPF generally - for those establishments exempted under the EPF Act or establishments in their infancy period.
3. Some Public Sector Companies or companies take exemption from the Government of India to manage the PF of the concerned employees through their owned Trust.

Regards, Ramakrishna

As per my knowledge, the two kinds of PF are PPF and EPF.

If you are in the process of leaving the company you are working for, you just need to send a letter to the PF Department mentioning your PF account number and informing them that you have left the company. You can even request the payment through your previous company. This process usually takes approximately 2-3 months.

The two types of PF are:

PPF - Private/Personal Provident Fund

EPF - Employee PF

The difference between the two is that one is associated with the company, where the deposits are made by the company on your behalf, and the other is where you open a fund yourself. The company you are working for has no interference in the latter.

Hi Kyat,

Yes, as you mentioned, there are two types of PFs: RPFC- Regional Provident Fund and the other is a private trust which a company can have if it has more than 100 or 150 employees. However, as far as I know, it would be difficult for any company to maintain a trust. That's why RPFC remains the superior option in PFs. In the latter case, the company needs to take permission from RPFC and provide all the process details to set up a separate trust to manage PFs.

Hope this is the information you were looking for.

Thanks,
Roopa