1 What is a provident fund?
A provident fund is a retirement fund run by the government. They are generally compulsory, often through taxes, and are funded by both employer and employee contributions. Governments set the rules regarding withdrawals, including minimum age and withdrawal amount
2 How can I open a PF account for company employees?
The employee needs to follow the below-mentioned steps:
Step 1- Register the organization with EPFO. Visit the website and register the organization with EPFO.
Step 2: Read the User Manual.
Step 3: Register DSC.
Step 4: Fill the Employer’s Details.
Step 5: Fill the details correctly.
3 What is the PF contribution for employer and employee in India?
Contribution by your employer,Your employer has to contribute an amount equal to 10% or 12% of your basic salary towards EPF.
4 How is PF 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).
5 Who are eligible for PF?
Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF. However, an employee who is drawing ‘pay’ above prescribed limit (currently Rs 15,000) can become a member with permission of Assistant PF Commissioner, if he and his employer agree
6 How to set up a provident fund for your employees?
Provident fund has been designed to act as a beneficial factor for employee of any company offering benefits at the of their employment. Since India is a country with a large population and everyone cannot be accommodated in government jobs offering pensions in case of a retirement and other benefits, the provident fund has been designed to offer financial security for all employees.
7 How does pf work in India?
Under EPF scheme, an employee has to pay a certain contribution towards the scheme, and an equal contribution is paid by the employer. The employee gets a lump sum amount including self and employer’s contribution with interest on both, on retirement.