What is provident fund Act in India?
Employees Provident Fund is established in 1952 and hence the act is named as Employees Provident Fund & Miscellaneous Provisions Act, 1952, which extend to the whole of India except Jammu & Kashmir. Employee Provident Fund (EPF) Provident fund is a welfare scheme for the benefits of the employees.
Is PF mandatory for salary above 15000?
Those earning basic wages more than 15000 per month, EPF contribution is not mandatory. Also, the employer can choose to limit its contribution towards EPF to 12 per cent of Rs 15,000 (Rs 1,800) under Section 26A of EPF act for those employees earning more than Rs 15,000 per month as basic wages.
How is PF calculated on salary in India?
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.
Is PF mandatory for all employees?
All employees drawing a salary are eligible for EPF. Moreover, it is compulsory for all employees earning less than ₹15,000 to register for the EPF. However, employees earning more than ₹15,000 can also voluntarily stay in the EPF scheme.
What is provident fund under Labour law?
The Government introduced the Employees Provident Fund, through the Employees Provident and Miscellaneous Provision act, 1952. It was enacted to provide compulsory benefits to the retired employees or benefits to the family of the employee who died other than natural death. Retirement is a part of human life.
What is provident fund?
A provident fund is an investment fund that is voluntarily established by Employer and employees to serve as long term savings to support an employee’s retirement. Sources of fund: Employee’s contribution: The amount deducted from the employee’s salary at a rate of 2% – 15%.
Who is not eligible for PF?
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 current PF limit for salary?
To widen the Employees’ Provident Fund (EPF) coverage, the labour ministry is likely to raise the wage ceiling for mandatory EPF benefit to Rs 21,000 a month from Rs 15,000 now.
How is PF calculated on salary 2021?
Employee contribution to EPF: 12% of salary. Employer contribution to EPF: 3.67% of salary. Employer contribution to EPS: 8.33% of salary subject to a ceiling of Rs. 15,000 salary, i.e. Rs.
How can I calculate my PF amount?
Calculation of EPF Contribution made by the employee equals 12% of his/her Basic Pay plus Dearness Allowance (DA). When the Basic Pay + DA is less than or equal to Rs 15000, the employee contribution is 12% of Basic Pay + DA, whereas the employer contribution is 3.67% of the Basic Pay + DA.
What is the maximum limit of fine to be imposed on an employee?
(4) The total amount of fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to[three per cent] of the wages payable to him in respect of that wage-period.
What are the types of provident fund?
Employees’ provident fund is classified into 4 categories: Statutory Provident Fund, Recognized Provident Fund, Unrecognized Provident Fund and Public Provident Fund.