Can anybody please let me know the difference between EPFO and PF trusts.
From India, Mumbai
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24From India, Mumbai
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Dear Sreekanth,
EPFO stands for Employee Provident Fund Organization, an autonomous social security body of the central government that deals with collecting, maintaining, and disbursing amounts to employees of the covered organizations/establishments. According to the act, establishments that recruit 20 or more employees must be covered under the act, and they have to deduct a 12% contribution from employees' wages/salary (Basic+DA+retaining allowances if any) on a monthly basis. This amount has to be remitted to the EPF fund through notified banks along with the employees' equal share. All deductions made on a monthly basis have to be consolidated and returns submitted to the Regional Provident Fund Organization. Establishments that follow the above-mentioned formalities are called un-exempted establishments.
Any establishment that wants an exemption in remitting contributions to the central government's fund accounts on a monthly basis may approach for the same. These establishments seeking exemptions are called exempted establishments and must create a trust called PF Trust. The PF Trust has to fulfill duties and responsibilities like EPFO.
I hope your doubts have been clarified now.
Best regards,
Chandrashekar
Bangalore
From India, Bangalore
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EPFO stands for Employee Provident Fund Organization, an autonomous social security body of the central government that deals with collecting, maintaining, and disbursing amounts to employees of the covered organizations/establishments. According to the act, establishments that recruit 20 or more employees must be covered under the act, and they have to deduct a 12% contribution from employees' wages/salary (Basic+DA+retaining allowances if any) on a monthly basis. This amount has to be remitted to the EPF fund through notified banks along with the employees' equal share. All deductions made on a monthly basis have to be consolidated and returns submitted to the Regional Provident Fund Organization. Establishments that follow the above-mentioned formalities are called un-exempted establishments.
Any establishment that wants an exemption in remitting contributions to the central government's fund accounts on a monthly basis may approach for the same. These establishments seeking exemptions are called exempted establishments and must create a trust called PF Trust. The PF Trust has to fulfill duties and responsibilities like EPFO.
I hope your doubts have been clarified now.
Best regards,
Chandrashekar
Bangalore
From India, Bangalore
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Dear Chandrashekar I do aware of PF Trust do you know the formality to open a trust for a company because i am planning to do it so can you please help me out... Regards, Ramkishore
From India, Bangalore
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From India, Bangalore
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Dear Shri Shreekanth Pr,
EPFO is the Employees' Provident Fund Organization under the Ministry of Labour. PF Trust is a trust authorized by the EPFO to maintain provident fund accounts of employees of a firm/corporate body. Such a Trust has to open and maintain PF accounts of the employees, regularly remit pension contributions of the members to the concerned office of the EPFO, issue annual account slips to the members, disburse the amount of PF accumulations to the members on death, retirement, resignation, etc. The Trust has to pay the Deposit Linked Insurance benefits to the members' nominees in the event of the death of the members. The trust is also required to submit periodic returns/reports to the EPFO for the accounts maintained by it. However, the pension is payable only by the EPFO.
On receipt of applications in Form 10-D from the retired/resigned employees or widows/widowers/children of the deceased members for pension through the PF Trust with details of remittances of pension contributions in respect of such account holders, the EPFO sanctions pension to the members of the PF Trust. For employees of firms who are not allowed to maintain their own PF Trust or who are not eligible to have their own PF Trust, the EPFO itself maintains PF accounts on receipt of data and remittances from the employers. The PF Trust may frame their own rules and regulations for the maintenance of PF accounts, but such rules and regulations are supposed to be based on relevant PF rules. A PF Trust has to give interest to the members at a rate declared by the EPFO every financial year.
To understand the difference between EPFO and a PF Trust, you can imagine a cooperative bank allowed to run banking operations by the Reserve Bank of India. Now, think of EPFO in place of RBI and the cooperative bank in place of a PF Trust, and the difference will be clear.
From India, Pune
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EPFO is the Employees' Provident Fund Organization under the Ministry of Labour. PF Trust is a trust authorized by the EPFO to maintain provident fund accounts of employees of a firm/corporate body. Such a Trust has to open and maintain PF accounts of the employees, regularly remit pension contributions of the members to the concerned office of the EPFO, issue annual account slips to the members, disburse the amount of PF accumulations to the members on death, retirement, resignation, etc. The Trust has to pay the Deposit Linked Insurance benefits to the members' nominees in the event of the death of the members. The trust is also required to submit periodic returns/reports to the EPFO for the accounts maintained by it. However, the pension is payable only by the EPFO.
On receipt of applications in Form 10-D from the retired/resigned employees or widows/widowers/children of the deceased members for pension through the PF Trust with details of remittances of pension contributions in respect of such account holders, the EPFO sanctions pension to the members of the PF Trust. For employees of firms who are not allowed to maintain their own PF Trust or who are not eligible to have their own PF Trust, the EPFO itself maintains PF accounts on receipt of data and remittances from the employers. The PF Trust may frame their own rules and regulations for the maintenance of PF accounts, but such rules and regulations are supposed to be based on relevant PF rules. A PF Trust has to give interest to the members at a rate declared by the EPFO every financial year.
To understand the difference between EPFO and a PF Trust, you can imagine a cooperative bank allowed to run banking operations by the Reserve Bank of India. Now, think of EPFO in place of RBI and the cooperative bank in place of a PF Trust, and the difference will be clear.
From India, Pune
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CG State Warehousing Corporation HO Raipur (CG) has been maintaining the PF of their employees through the PF trust. However, CGSWC is providing an interest rate on employee PF below the declared rate of interest by the EPFO. As a result, employees of CGSWC, like me, are suffering economic losses due to the very low rate of interest offered by the PF trust. I seek legal advice on how to ensure that the PF trust provides an interest rate that is more favorable to its employees.
From India, Bhilai
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From India, Bhilai
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EPFO circular regarding TDS on Payment of Provident Fund.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc