Provident fund (PF Act, 1952) is one of the main savings platforms in India, employees who are working in both private and government sector organisations. Provident fund will be calculated based on employee basic salary and dearness allowance, in case of private organisations there is no dearness allowance.
What is the contribution for provident fund by the employee and employer?
The employee will contributes 12% from his basic salary and the same amount contributed by the employer.
Which establishments are covered under PF Act?
In any organisation or establishment 20 or more persons employed then the organisations covered under EPF Act, 1952 and they can start provident fund scheme for the employees.
What is the accounting year for provident fund?
Provident fund accounting years is from March to February
What is the current ceiling threshold limit of provident fund?
The provident fund ceiling threshold limit has been increased to Rs.15,000 from Rs.6500.
What is the employer contribution to the provident fund?
The employer contributes 12% on employee basic salary to the provident fund, however an employer contribution is bifurcated into 3.67% contribution to provident fund and 8.33% contribution to employees pension scheme.
Which form needs to fill while transferring provident fund?
You have to fill form no 13 to transfer your current PF amount.
What is form 19 & 10C?
Form 19 is used for provident fund withdrawal and form 10C is used for pension scheme withdrawal.
If the new employee has joined recently, what will happen his previous PF accumulation?
Accumulation of provident fund with the previous employer can be transferred to by filling form 13. The employee has to fill previous and present organisation details in form 13.
Will employee get any interest on cumulative provident fund?
The employee can earn interest on the cumulative provident fund, but the percentage varies year to year and the same is declared by the PF board.