We are an educational institute. We are hiring part-time teachers on a one-year contract basis. Can anyone tell me about the PF deduction?
From India, Panipat
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From India, Panipat
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As per EPFO rule if your organization have more than 20 nos. of Employees You have to deduct the EPFO contribution being it contractual or permanent or part time employees.
From India, Kolkata
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From India, Kolkata
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Hi Umesh-Joshi,
Here's a brief overview of PF deductions for part-time teachers on a one-year contract basis:
Eligibility
If your part-time teachers are earning a basic salary of ₹15,000 or less per month, they are eligible for PF deduction.
Contribution
Both the employer and the employee contribute to the PF fund. The current contribution rate is 12% of the employee's basic salary each month from both parties.
Calculation
The PF contribution is calculated on the basic salary. It includes basic pay, dearness allowance (DA), retaining allowance (if any), and other cash payments made to the employee.
Voluntary Provident Fund (VPF)
Employees can choose to contribute more than the mandatory 12% towards their PF account. This is known as the Voluntary Provident Fund.
UAN (Universal Account Number)
Every employee contributing to PF is allotted a UAN, which remains unchanged throughout their employment. It helps in portability and tracking of PF contributions.
Withdrawal
PF can be withdrawn partially for specific purposes like housing, medical emergencies, marriage, education, or fully upon retirement.
Tax Benefits
Contributions to PF are eligible for tax benefits under Section 80C of the Income Tax Act, up to a specified limit.
Employer's Responsibility
The employer is responsible for deducting the PF contribution from the employee's salary and depositing both the employer's and employee's share to the respective PF account within the due date.
EPFO
The Employees' Provident Fund Organisation (EPFO) oversees the administration of PF accounts and ensures compliance with PF rules and regulations.
It's crucial to ensure compliance with PF regulations to avoid any legal issues and provide a secure financial future for your part-time teachers.
Thanks
From India, Bangalore
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202Here's a brief overview of PF deductions for part-time teachers on a one-year contract basis:
Eligibility
If your part-time teachers are earning a basic salary of ₹15,000 or less per month, they are eligible for PF deduction.
Contribution
Both the employer and the employee contribute to the PF fund. The current contribution rate is 12% of the employee's basic salary each month from both parties.
Calculation
The PF contribution is calculated on the basic salary. It includes basic pay, dearness allowance (DA), retaining allowance (if any), and other cash payments made to the employee.
Voluntary Provident Fund (VPF)
Employees can choose to contribute more than the mandatory 12% towards their PF account. This is known as the Voluntary Provident Fund.
UAN (Universal Account Number)
Every employee contributing to PF is allotted a UAN, which remains unchanged throughout their employment. It helps in portability and tracking of PF contributions.
Withdrawal
PF can be withdrawn partially for specific purposes like housing, medical emergencies, marriage, education, or fully upon retirement.
Tax Benefits
Contributions to PF are eligible for tax benefits under Section 80C of the Income Tax Act, up to a specified limit.
Employer's Responsibility
The employer is responsible for deducting the PF contribution from the employee's salary and depositing both the employer's and employee's share to the respective PF account within the due date.
EPFO
The Employees' Provident Fund Organisation (EPFO) oversees the administration of PF accounts and ensures compliance with PF rules and regulations.
It's crucial to ensure compliance with PF regulations to avoid any legal issues and provide a secure financial future for your part-time teachers.
Thanks
From India, Bangalore
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PF form 2 part A.jpg
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
SALARY with out PF Deduction.xls