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
From India, Panipat
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
From India, Kolkata
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 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Withdrawal: PF can be withdrawn partially for specific purposes like housing, medical emergencies, marriage, education, or fully upon retirement.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 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
149Here'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 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 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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