Dear Senior Members Good Afternoon to all, I want the full information regarding the Employee provident fund scheme in easy language to have an deep idea regarding that... Thanks and Regards
From India, Mumbai
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5From India, Mumbai
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1. What is the contribution for Provident Fund by both the Employer and Employee?
Ans: The Employee contributes 12% of his/her Basic Salary, and the same amount is contributed by the Employer.
2. Is it compulsory for all employees to contribute to the Provident Fund?
Ans: Employees drawing a basic salary up to Rs. 6500/- have to compulsorily contribute to the provident fund, while employees drawing above Rs. 6501/- have the option to become a member of the Provident Fund.
3. Is it beneficial for employees who draw a salary above Rs. 6501/- to become a member of the Provident Fund?
Ans: Yes, because provident fund contribution by the employer and employee is not taxable income for Income Tax purposes.
4. What is the contribution percentage to the Provident Fund and Pension Scheme?
Ans: The employee's full contribution will go to the PF fund. From the Employer's 12%, 8.33% will go to the pension fund (subject to a maximum amount of Rs. 541), and the remaining amount will go to the PF fund.
5. Do we get any interest on the amount which I...
From India, New Delhi
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Ans: The Employee contributes 12% of his/her Basic Salary, and the same amount is contributed by the Employer.
2. Is it compulsory for all employees to contribute to the Provident Fund?
Ans: Employees drawing a basic salary up to Rs. 6500/- have to compulsorily contribute to the provident fund, while employees drawing above Rs. 6501/- have the option to become a member of the Provident Fund.
3. Is it beneficial for employees who draw a salary above Rs. 6501/- to become a member of the Provident Fund?
Ans: Yes, because provident fund contribution by the employer and employee is not taxable income for Income Tax purposes.
4. What is the contribution percentage to the Provident Fund and Pension Scheme?
Ans: The employee's full contribution will go to the PF fund. From the Employer's 12%, 8.33% will go to the pension fund (subject to a maximum amount of Rs. 541), and the remaining amount will go to the PF fund.
5. Do we get any interest on the amount which I...
From India, New Delhi
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You should refer to the Government website for more accurate details at the EPFO website [url=http://www.epfindia.com].
But Mr. Ajay, try using the search option on this site so that you do not have to wait.
From India, Bangalore
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But Mr. Ajay, try using the search option on this site so that you do not have to wait.
From India, Bangalore
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Employees' Provident Fund scheme has been created by the Central Government to provide social security to the individual employee and their family members. The PF scheme provides the following benefits to the employee and their family members:
1. Savings - Monthly contributions to the PF fund accumulate regularly, which in turn yields a huge amount of savings at the time of retirement.
2. Pension - After retirement, the employee is entitled to receive a monthly pension.
3. Family Pension - In the case of the death of an employee, their family members such as the spouse and children are entitled to receive a pension.
4. Insurance - In the event of the employee's death, the family member is entitled to receive an insurance claim from the PF organization under the EDLI scheme.
5. Income Tax Benefit - The employee is entitled to an exemption from income tax for their own contributions to the PF fund.
Every employee should contribute to the PF fund, and every employer should arrange and facilitate their employees to obtain the above benefits from the PF Organization.
From India, Mumbai
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1. Savings - Monthly contributions to the PF fund accumulate regularly, which in turn yields a huge amount of savings at the time of retirement.
2. Pension - After retirement, the employee is entitled to receive a monthly pension.
3. Family Pension - In the case of the death of an employee, their family members such as the spouse and children are entitled to receive a pension.
4. Insurance - In the event of the employee's death, the family member is entitled to receive an insurance claim from the PF organization under the EDLI scheme.
5. Income Tax Benefit - The employee is entitled to an exemption from income tax for their own contributions to the PF fund.
Every employee should contribute to the PF fund, and every employer should arrange and facilitate their employees to obtain the above benefits from the PF Organization.
From India, Mumbai
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx