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After that only it can be registered with the PF department. Even for this Act also the minimum number of employee should be 20. Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund . It is mandatory for employees completing 10 years of service to opt for Pension. Employee completing 10 years of service can not withdraw entire PF (employer and employees contribution). They are allowed to withdraw their contribution 12% and Employers contribution of 3.67% to PF. Balance amount i.e. Employer contribution amounting to 8.33% will be paid by way of pension (calculation done by PF office basis no of years of service and some ratios, all details not known). Therefore it is advisable not to withdraw PF and continue with the same by transferring old PF no to new employer.
a fresh form 5A showing the new owners/ directors should be submitted to the EPFO. . Memorandum of Articles of Association 7. Form 5A of EPF is a return of Ownership which is normally submitted to the EPFO at the time the company is covered by EPF Schemes for the first time. Muster since commencement of business. owners. particulars of all the branches and departments. directors. Whenever any change takes place in the constitution or the board of Directors. Shop & Establishment license 6. should submit in Form 5A(in duplicate) to the commissioner. designation etc are not needed) 2. 3. Certificate of Commencement of business 5. In form 5A details of employers only is given though the company may be managed by the Manager or the person who looks after the PF and related matters is the Personnel Manager/ HR Manager of the company. What all PF office requires at inspection 1. List of Directors with address 9. Statement of staff strength to check the no of employees are below 20 during the time the benefit of PF was not extended. name. (year and month wise statement since the commencement of business giving no of employees on payroll.Every employer of an establishment to which the Employee Provident Fund Act applies. List of employees to be covered with reference to date of joining to allot PF numbers to individual employee. partners if any or any other person who is controlling its affair within 15 days of its applicability of the scheme. This form shows who are the owners/ partners or Directors of the company and who is responsible for the conduct of the business of the company. Certificate of Incorporation 4. Salary Sheet for 3 previous months. It is on the basis of the information given in form 5A that the PF authorities will initiate prosecution or criminal case against an employer who fails to remit the contributions in time. the commissioner shall verify the particulars submitted and after been satisfied shall allot an Establishment Code No. 8. On receipt of Form 5A.
67% 3500 x 0. jute.1% 3500 x 0.5% 3500 x 1. coir industry other than spinning sector Scheme Name Employee provident fund Employees’ Pension scheme Employees Deposit linked insurance EPF Administrative charges EDLIS Administrative charges Employee contribution 10% 0 0 0 0 Employer contribution 1.5% 1.33% 0.01% Paid to A/c No 1 10 21 2 22 Sick industries like beedi.5% 1. .01% Amount 420 292 128 18 39 0.Scheme Name Employee provident fund Employees’ Pension scheme Employees Deposit linked insurance EPF Administrative charges EDLIS Administrative charges Employee contribution 12% 0 0 0 0 Employer contribution 3.67% 8. guar gum factories.33% 0.33% 3500 x 3.1% 0.67% 8.1% 0.35 ( round up to Rs 1/-) The above calculation is easy .01% Paid to A/c No 1 10 21 2 22 Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/Contribution Towards EPF Employees share EPS Employer share EPF employer share EDLI charges EPF Admin charges EDLI Admin charges Calculation 3500 x 12% 3500 x 8.
Here you don’t need to care about it.67%?. The only thing you should take care is. Consider an employee getting a basic salary of 7500/We can calculate it in different ways.33% 7500 x 12% (-) 541 6500 x 0.65 ( Round up to Rs 1/-) I will explain how Employer contribution of EPS and EPF is calculated.00 equal to 900. You may be thinking that. Method-1 If your company consider total basic salary above the limit fixed 6500.5% 6500 x 1. . what about 3.1% 6500 x 0.00 EPS share is RS 541/.00.5 71. EPS is calculated only up to 6500/.00 Total share 900.Calculation of EPF for employees getting a basic salary over and above the ceiling limit 6500/In such cases companies uses different method for calculation as per their pay roll policy. The three methods mentioned below are based on the above example.which is fixed for a basic salary greater than 6500/-.01% Amount 900 541 359 32.00 which willgo to EPF account.00 EPS Share is fixed to 541.that means the maximum amount is fixed to Rs 541.00 Balance (900-541) goes to EPF account 359. Employer is decided to contribute on total basic salary which is 12 % on 7500.5 0.00 for PF calculation Contribution Towards EPF Employees share EPS Employer share EPF employer share EDLI charges EPF Admin charges EDLI Admin charges Calculation 7500 x 12% 6500 x 8. The balance amount is 900-541 = 359.00 Out of Rs 900.
Method2 Some companies follows the below method in which employee share is calculated on 7500/.in spite of higher basic salary than 6500.67% 6500 x 0.5% 6500 x 1.1% 6500 x 0.and employer share is calculated on up limit Rs 6500/Contribution Towards EPF Employees share EPS Employer share EPF employer share EDLI charges EPF Admin charges EDLI Admin charges Method3 Some are calculating both employer and employee shares on 6500/.67% 6500 x 0.65 ( Round up to Rs 1/-) .33% 6500 x 3.33% 6500 x 3.1% 6500 x 0.01% Amount 780 541 239 33 72 0.5% 6500 x 1.01% Amount 900 541 239 33 72 0.65 ( Round up to Rs 1/-) Calculation 7500 x 12% 6500 x 8.00 Contribution Towards EPF Employees share EPS Employer share EPF employer share EDLI charges EPF Admin charges EDLI Admin charges Calculation 6500 x 12% 6500 x 8.
Form 2. and later you joined you had Y PF account no. in order to save themselves. Share for each etc Also for changing nominee names Form 2 is used. nomination & Declaration form. suppose you joined A co. that's a responsibility on the employee but nobody does that. Submitted along with form-5.At the time of joining an employee has to fill the following forms Form . Form No. address and any P.11 ( Eleven) under EPF scheme pertains to information provided by an employee while joining a new employer. about his previous previous employments with name and address of employers along with duration of service. relation. you had X PF account no. Form 2 Nomination form mentioning the name of nominee/s to get the share of money in case something accidental happens to you .F no.11 Self declaration form mentioning the name. allotted to him by any previous company where he was working. His eligibility begins on the date of joining the firm. i. The Form 11 of EPF is a declaration by the employee for certifying that wherever has has worked/or not worked. the employer gets the form 11 filled by the employee and this form is kept with the employer only and it shud be produced before the inspector upon inspection. In this form a new joinee also declares that whether he was previously a member of EPF scheme or not.e. Form 2: Employee should fill. The govt has introduced this form in order to stop the system of having multiple numbers of one employee. includes the following · Name of the employee · Parent/spouse name · Date of Birth · Sex · Marital Status · AC No · Address · Names. EPF inspector while inspecting records of an establishment may ask for these forms to check the eligibility criteria. he never had a PF account number. address. . at the time of joining. in that case employee should get the PF account transferred thru his employer. This form is to be kept by an employer and not to be deposited with Sub/Regional commissioner.
8. Total Wages salary will be same for all a/c.) 3) A/C No. 22:.61 % Employer share.) 2) A/C No.33 Employer (Eemployee Pention scheme) 4) A/C No. 2:. About PF Challan form:1) Name of Address of Branch (SBI) where you Organization deposit EPF.Total Basic wages of all Employees from which you will taken 12 % of employee share and 13. of employees from which wages PF depositing.61 % of employer share. i.:1) A/c No.0.) After that EPF challan should be deposited before 15th of every month but there is 6 days for grace period.Given by EPF Dept.10 % of Employer (PF Inspection Exp. 21:. 5) Total No. 3) Dues for the M/O:. 21. . Exp. 10 and A/C No.0. A/C No. of Subcribers: Means total nos.Date of deposit of fund. A/C No. 2) Establishment Code:.67 % of Employer and 12 % (Employee PF. 10:.FOR EMPLOYER EPF Challan EPF will be deduct on Basic salary @ 12% Employee share and 13.1.3. 6) Total Wages:. 1:.50% Employer (EDLI) 5) A/C No.01% (EDLI Admn. 1. A/C Nos.e.means for which month you are depositing EPF 4) Date of Payment:.
includes the following.list of all the employees newly joined in that month Before 25 th P. Triplicate copy of challan (out of 4 copies of the challan) 2. Form 10.F office 1. Form 5 . Before 25 th P.F.list of all the employees left during the same month. Monthly before 25 th • • • • • • • Name of the establishment and address Month Code no: of the establishment A c no: Name of member who is leaving Fathers or Husband name in case of married women Date of leaving service . Form 10 . Monthly before 25 th • • • • • • • • • • Name of the establishment and address Month Code no: of the factory A c no: Name of new employees Fathers or Husband name in case of married women Date of birth Sex Date of joining the fund Total period of pervious services as on the date of joining the fund 3.After depositing all the contributions of both employer and employee with the bank for any month. by the 15th of the following month following records have to be filed with P. Form 5. includes the following.F.
Name and address of the bank in which the amount is remitted.2 collected from all the new employees covered in Form 5 (joined during the corresponding month) 5. Details of subscribers for E. PF. Monthly before 25 th • • • • Name of the establishment and address Currency period and month (April yr to march yr) Statutory rate of contribution (12%) Group code (NA for unexempted establishment. the number should tally with monthly list of employees) Cross checking the above is done with the salary statement. EDLI --No of subscribers as per last month --No of new subscribers (vide F5) --No of subscribers left service (vide F 10) --Total no of subscribers (After adding and subtracting the new and retired employees with. Establishment having more than 1000 (Iam note sure about exact figure) have to keep a PF trust and have to specify the group code) • • • • • • Total wages due for each account (wages on which calculations are done) Amount of contribution and amount remitted (consolidated amount with employer and employee share) Date of remittance Total number of subscribers for the current month. . Form 12 A.monthly return form Before 25 th P.F.P. Form .• • Reasons for leaving service Signature of authorised officer and stamp of the establishment 4. Form 12A . includes the following.F.
Both employer and employee have to specify his name. Form 10 is used for pension withdrawal. For advance : Form 31 IN CASE OF EMPLOYEE EXPIRED / DEAD : Process details Form 10 D (For claiming benefits under Pension) Employee should fill like Expired/late employee name. Contribution for current financial year etc. Ac no. Reasons for leaving service. TRANSFER : FORM 13 Form 13 is used for transferring an employee AC from one company to another. nomination name. nominee will get benefit. . details. PF AC no. Nomination Bank a/c…for withdrawal of PF Fund (Incase of Death of a member Form 5 IF (For Claiming EDLI benefits. 4. nomination name. Nomination Bank a/c…for monthly Pension Form 20 (For Claiming EPF Contributions) Employee should fill like Expired/late employee name. Employee register 3A. nominee will get benefit) EDLI for death case. 6 5. Photocopy of the above is kept in PF file for transfer. Employee and parent/spouse name. Position etc and submitted with a covering letter (consolidated list of employees).WITHDRAWERS/: FORM 10C (PENSION) & FORM 19 (PF) Form 19 is used for withdrawing PF amount. name of the establishment. details.
employer contribution. . • This grand total should tally with all form 12 A and challan totals. annual salary. Form 3 A (Individual Computation sheet) 2. unauthorised leave). Annual Returns Form 6A and 3A • • • • • Currency period and month (April yr to march yr) Name of the establishment and address Code no: of the establishment No: of member voluntary contributing at a higher rate AC No of each employee followed by their name. annual contribution. Form 6 A (Consolidated Annual Contribution Statement) 3. rate of voluntary contribution. refund of advance. · This grand total should tally with all form 12 A and challans totals. before 30th April every year Form 6A: · Currency period and month (April yr to march yr) · Name of the establishment and address · Code no: of the establishment · No: of member voluntary contributing at a higher rate · AC No of each employee followed by their name. annual salary. contribution.ANNUAL RETURNS: 1. form 6 A is filled up and crosschecking is done with all challans and 12 A forms. Employer share. refund of advance. Using Form 3A. No of days/period of non contributing service. rate of voluntary contribution. Refund of advance. employer contribution. annual contribution. if any (eg. P. Form 3A: Register This form is filled up for each employee stating his each monthly salary.F. If the employee is resigned during that financial year then the date of leaving service and reasons for leaving service should be specified in this form.
No of days/period of non contributing service. If the employee is resigned during that financial year then the date of leaving service and reasons for leaving service should be specified in this form.P.F. if any (eg unauthorised leave). Annual Returns Form 3A This form is filled up for each employee stating his each monthly salary. Using this form 6 A is filled up and crosschecking is done with all challans and 12 A forms. Employer share. . contribution. Refund of advance.
such nomination becomes invalid and he will have to make a fresh nomination of one or more persons belonging to his family.have an option to become member of the Provident Fund . You cannot make your brother your nominee as per the Acts.but after some period of time their basic increases above Rs 6501/. Q5) What is the contribution percentage to the Provident fund and Pension Scheme ? Ans : Employers contribution of 12% of basic salary is totally deposited in provident fund account Whereas out of Employees contribution of 12% . . Q8 ) What is the provision of the scheme in the matter of nomination by a member ? Ans : Each member has to make a nomination to receive the amount standing to his credit in the fund in the event of his death.have to compulsorily continue to be member of provident Fund.to become member of Provident Fund ? Ans Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose. Q7 ) Which form has to be filled while transferring provident fund deposit ? Ans : You just have to fill form no 13 to transfer your P. Q2) Is it Compulsory for the all the employees to contribute to the Provident Fund ? Ans : Employees drawing basic salary upto Rs 6500/. Q6) Which form has to be filled while becoming member of provident fund ? Ans : Nomination Form No 2 has to be filled to become a member of the Provident fund.33% is deposited in Pension scheme. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires family. Q4) What if an employee while joining establishment has a basic salary of Rs 4200 and after some period of time his basic salary increases above Rs 6501/-.F amount. does he have an option to terminate his member ship form the Provident fund act? Ans : Employee who while joining the organisation has a basic salary above Rs 6501/have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organisation is less then Rs 6501/. Q3) Is it beneficial for employees who draw salary above Rs 6501/. 3. form is available with HR department .FAQ ON PROVIDENT FUND Q1) What is the Contribution for Provident Fund both by the Employer & Employee ? Ans : The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer. he has to nominate one or more person belonging to his family and none other.67% is contributed to Provident fund and 8. If he has a family.have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/.
for e. an employee who has worked with X company for say 3 years. Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.Q9 ) When is an employee eligible to enjoy pension scheme ? Ans : For an employee to become eligible for Pension fund. then we say continuous service of ten years. Q16 ) What are the benefits provided under Employee Provident Fund Scheme? Ans : Two kinds of benefits are provided under the schemea) Withdrawal benefit b) Benefit of non -Refundable advances Q18 ) What is the purpose of the Employee's Pension Scheme ? Ans : The purpose of the scheme is to provide for 1) Superannuation pension.g. 2) Retiring Pension. Retirement Pension: member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years. 3) Permanent Total disablement Pension Superannuation Pension: Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years. then resigned from there to join establishment for 5 years but during these 10 years of service he has not withdrawn but transferred his Employee pension fund. 10 C is for Pension scheme withdrawal. . Q14 ) Do we get any interest on the amount which is deposited in the Provident Fund account? Ans : Compound interest as declared by the Govt. we mean to say that during services. is given for every year of service.. then he resigned from that organisation and joined Y company. wherein he worked for 2 years. Q12 ) What happens to the provident fund & Employee Pension fund if an employee who wants to resign from the service before completion of ten years of continues service? Ans : Employee can withdraw the PF accumulations by filling Forms 19 & 10 C which is available with the HR department. he has to complete membership of the Fund for 10 Years. Q10 ) What does it mean by continuous service of ten years ? Ans : When we say continuous service of 10 years in Employee Pension Fund. Q11 ) When can an employee avail the benefit of Employee pension fund scheme which he has contributed during his ten years of continues service / Ans : An employee can avail the benefit after completion of 58 years of service. Q15 ) What is the accounting year for Provident fund account? Ans : Accounting year is from March to February. Q13 ) What is this 19 & 10C form ? Ans : Form No 19 is for Provident fund withdrawal & Form No.
F amount. amount contributed during the year. withdrawal during the year. this two months is nothing but a waiting period as the rules are that an employee should not be in employment for two months after resigning if he has to withdraw his P. & the complete address of the Bank where you hold the account. Where the establishment is closed down and only four security men are employed for keeping a watch over the assets and properties of the establishments.F & pension money if an employee resigns from the Service? Ans : Normally the procedure for receiving P.F office after two months. The statement contains details like. a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice's Act then he/ she will not be considered as an employee under this Act. which is then submitted to the P. every Employee including contract labour who is in receipt of basic salary up to Rs. Q21 ) How would I know the amount of accumulations in my PF account ? Ans : PF office sends an annual statement through the employer which gives details about the PF accumulations.F & Pension money is . the Act would not be applicable. Except apprentice and casual laborers.F form withdrawal form you have to mention your saving Bank account No. is covered by the Act. This statement is sent by the PF department on completion of the financial year. Q20 ) Do we receive money through postal order ? Ans Previously there was a procedure wherein member use to get P.m. Q24 ) Is the Act applicable to a factory which is closed down but is employing a few employees to look after the assets of the establishment ? Ans : No.Q19 ) How much time does it take to receive P. 6500 p. Q22 ) Which establishments are covered by the Act ? Ans : Any establishment which employs 20 or more employees. interest earned and the closing balance in the PF account. After completion of two months the form is submitted to the regional provident fund Commissioner office after which the employee receives his amount along with interest within a period of 90 days. the employee has to fill 19 & 10 c Form and submit the same to PF Desk . the number of employees working in it becomes less than 20 then will the Act apply ? Ans : Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20. Q23 ) In case after registering the establishment at any point in time.F through Postal order but now While submitting the P. Opening balance. . Q25 ) Is a trainee an employee under the Act ? Ans : Yes.
Q29 ) Are the persons employed by or through a contractor covered under the Scheme ? Ans : Persons employed by or through a contractor are included in the definition of “ employee ” under the Employee's Provident Finds Act. The Company becomes the Principal Employer would be responsible for the PF deduction of the workers employed on contract basis. Q32 ) What happens in case there is a salary revision and a raise in the basic salary of the employee and arrears need to be paid. 1952. Q31 ) Could the employer be punished in case the remittance of contribution by him is delayed in a Bank or post office ? Ans : Employer cannot be punished or penalized in case there is a delay in the remittance of the contribution on account of delay in Bank or post office. there is a body called as Provident Fund Appellate Tribunal where an employer can appeal. and as such. iii)any Additional Central Provident Fund Commissioner iv)any Deputy Provident Fund Commissioner v)any Regional Provident Fund Commissioner or vi)any Assistant Provident Fund Commissioner Q28 ) What in case there are workers involved as Contract labour ? Ans : It is the responsibility of the Contractor to deduct the PF and submit a statement to the Principal Employer in the prescribed format by 7th of every month.Q26) Is it possible to appeal the orders of the Central Government or the Central Provident Fund Commissioner ? Ans : Yes. Q30 ) In case the Contractor fails to deduct and submit the PF amount from the contract workers then what is to be done ? Ans : The Company being the Principal employer is responsible for the PF to be deducted from the Contract workers as well. . Do we need to deduct PF from the arrears as well ? Ans : Arrears are considered to be emoluments earned by the employee and PF is to be deducted from such arrears. ii)any Additional Provident Fund Commissioner. Q27 ) Who is the authority to decide regarding the disputes if any ? Ans : In case there is a dispute regarding the applicability of the Act or the quantum of money to be deducted etc. In case the Contractors fails to deduct and submit the PF dues then the Company has to pay the amount and can later on recover the amount from the Contractor. they are covered under the Scheme. the authority to decide are the i)Central Provident Fund Commissioner.
Q34 ) What is the interest on the PF accumulations ? Ans : Compound interest as declared by Central Govt.Q33 ) Is it possible for an employee to contribute at a higher rate of interest than 12 %? Ans : Yes. if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12 %. is paid on the amount standing to the credit of an employee as on 1st April every year. .This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.