What are the main features of the Employees Provident Fund Act 1952?
Employee Provident Fund Scheme, 1952 Under this scheme, every employee is required to make a contribution towards the provident fund at the rate of 12% of the Basic Wages, Dearness Allowance and cash value of food concession.
Who introduced PF in India?
As of 2018, more than ₹11 lakh crore (US$157.8 billion) are under EPFO management….Employees’ Provident Fund Organisation.
| Native name | कर्मचारी भविष्य निधि संगठन |
|---|---|
| Owner | Ministry of Labour and Employment, Government of India |
| Website | epfindia.gov.in |
How is PF deducted?
Employee’s contribution towards EPF – 12% of the employee’s salary is deducted by the employer on a monthly basis for contribution towards EPF. The entire contribution goes towards the EPF account. Employer’s contribution towards EPF – The employer also contributes 12% of the employee’s salary towards EPF.
Is PF deducted from gross salary?
An employee’s gross salary is the amount they receive before deductions. The employee’s provident fund (PF) contribution is deducted from their gross pay.
Why PF is deducted twice from salary?
EPF rule says 12% of your basic + allowance will be deducted from your gross salary and employer will match the same amount (which is included in CTC). So basically 24% of your (basic+allowance) deducted and deposited to your EPF account.
What is basic salary for EPF?
They said the deduction as per Employees Provident Fund (EPF) should be done for those persons receiving Rs 21,000 as monthly salary. Meaning, the minimum criteria or salary for which deduction under EPF is being done should be increased to Rs 21,000.
Can we deposit extra amount in EPF account?
Employees usually contribute 12% of their basic salary while the employer makes a contribution of 13.61% towards the EPF. EPF is an retirement investment plan opted by a number of employees as this has number of benefits.
How much we can contribute in EPF?
The EPF contribution is either 12% of Rs. 15,000 or 12% of (Basic Salary + Dearness Allowance, if applicable). The upper limit of EPF contribution every month is 12% of Rs. 15,000.
Can I contribute to EPF after resignation?
7 – Can an employee contribute to the EPF after leaving the service? Ans : No. In the absence of wages & Employer no recovery can be affected. Any contribution by the member must be matched with employer’s share of contribution.