Who are eligible for provident fund?
It is mandatory for employees having a salary of Rs.
15,000 or more to be a member of this scheme although the employee can voluntarily apply for it at any wage.
The employee contributes a minimum 12% of salary (can voluntarily contribute more)..
Does Provident Fund expire?
Your account will become inactive three years after retirement. There is no time limit for withdrawal of Provident Fund dues. Only in the case of resignation from service (not retirement), a member has to wait for two months for withdrawal of PF amount.
How is a provident fund calculated?
Interest on the Employees’ Provident Fund (EPF) is calculated on the contributions made by the employee as well as the employer. Contributions made by the employee and the employer equals 12% or 10% (includes EPS and EDLI) of his/her basic pay plus dearness allowance (DA).
Is PF mandatory above 15000?
If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.
What is the new rules of EPF?
At present, the employers and the employees contribute 12% each (total 24%) of the basic salary and dearness allowance (DA) to the retirement kitty run by the Employees’ Provident Fund Organisation (EPFO). Under the new rules, this 12% is being cut to 10% (total of 20%) for three months of May, June and July.
Can I get my provident fund if I resign?
The Income Tax Act says that you can only withdraw from your provident fund if you resign, or are dismissed or retrenched. … You complete this and return it with your proof of banking details and ID to your employer who will counter-sign it and forward it to the provident fund administrator for processing.
Who is not eligible for PF?
As per the rules, in EPF, employee whose ‘pay’ is more than Rs 15,000 a month at the time of joining, is not eligible and is called non-eligible employee. Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF.
Why PF is not deducted from salary?
So, the decision whether to deduct or go for non-deduction of provident fund should be made at the start of employee A’s career i.e. on day one of joining a job. … On the other hand, contribution to provident fund is mandatory if the basic salary of an employee is less than Rs 6500.
Why PF is deducted from salary?
EPF Benefits Deductions are made on a monthly basis from the employee’s salary and it helps in saving a huge amount of money over a long period. It can help an employee financially during an emergency. It helps in saving money at the time of retirement and helps an individual maintain a good lifestyle.