What is the minimum number of employees required for applicability of the Provident Fund Act?
20
What is the minimum PF contribution by employer?
According to regulations, employees and employer contribute 12% of the basic monthly salary to the EPF. Women can choose to contribute only 8% of the basic monthly salary for the first three years. For sick companies or establishments with less than 20 employees, the rate can be 10%.
Is EPF compulsory for all employees?
EPF is a retirement benefit plan where both employer and employee contribute a certain percentage of the salary. Who is eligible to join EPF scheme? According to the EPF scheme rules, it is mandatory for an employee to join the EPF scheme if his pay is less than or equal to Rs 15,000 a month.
Who is eligible for employee provident fund?
Any salaried employee with a monthly income of less than 15,000 INR needs to compulsorily be a member of the EPF. An employee with a monthly income higher than INR 15,000 (the current prescribed limit) is eligible to become a member of the EPF if he/she gets approval from the Assistant PF Commissioner and employer.
How is PF calculated?
The employee contributes 12 percent of his or her basic salary along with the Dearness Allowance every month to the EPF account. For example: If the basic salary is Rs. 15,000 per month, the employee contribution shall be 12 % of 15000, which comes to Rs 1800/-. This amount is the employee contribution.
What is Employee Provident Fund Act?
Short Title: The Employees Provident Funds and Miscellaneous Provisions Act, 1952. Long Title: An Act to provide for the institution of provident funds pension fund and deposit-linked insurance fund for employees in factories and other establishments.
Who is exempted under PF act?
Exempted vs Non-Exempted establishment under EPF Act Under Section 17 of the EPF Act, organizations are exempted from depositing Provident Fund, both employee and employer’s shares, with the EPFO, provided that they maintain their own account by creating a Trust but ensure compliance with various provisions of the Act.
How many types of provident fund are there?
Employees’ provident fund is classified into 4 categories: Statutory Provident Fund, Recognized Provident Fund, Unrecognized Provident Fund and Public Provident Fund. Let us have a brief look on the types of funds and tax imposed on these funds.
What are the four kinds of provident funds?
Depending on different tax conditions and their implications, there are four types of funds, including:
- Statutory Provident Fund.
- Recognized Provident Fund.
- Unrecognized Provident Fund.
- Public Provident Fund.
- Statutory Provident Fund (SPF): The local authorities, government agencies, railways, universities, etc.
What is difference between PF and GPF?
Employees’ Provident Fund is a retirement-cum savings scheme similar to GPF. However, unlike GPF, an EPF is mandatory for those working in an organisation with more than 20 employees. This interest is calculated monthly and transferred to an individual’s EPF account at the end of every year.
What is general provident fund?
GPF or General Provident Fund is a type of PPF account for all government employees in India. Also, this account allows the government employees to contribute a certain percentage of their salary to the General Provident Fund.
Is general provident fund taxable?
“Private sector employees earning interest on Provident Fund on annual contribution exceeding Rs2. 5 lakh would be required to pay tax on interest accruing on such excess contribution, for the government sector employees, the monetary ceiling shall be Rs5 lakh,” said Malhotra.
What is GIS government salary?
Group Insurance Scheme (GIS), Ministry of Textile.
Is GIS a good career?
GIS is a strong career, and it will be in demand for a long time. But like all careers, GIS is changing fast with new techniques every day. As a GIS specialist, your salary depends on your work experience and varies according to the job location and title.
How is GIS benefit calculated?
The GIS amount is calculated based on income for the past calendar year. As an example, GIS payments for July 2019 through June 2020 would be based on 2018 income. GIS income is reduced by 50 cents for every dollar of other income you receive starting with the maximum payable amount.