Copy of Provident Fund Act

8/8/2019 Copy of Provident Fund Act

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The Employees Provident Funds Act 1952The Employees Provident Funds Act 1952

Employer role & responsibilityEmployer role & responsibility

Employee role & responsibilityEmployee role & responsibility

The Employees Pension Scheme 1995The Employees Pension Scheme 1995

The Employees DepositThe Employees Deposit--Linked Insurance SchemeLinked Insurance Scheme

(EDLI) 1976(EDLI) 1976

List of FormsList of Forms 2


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yy SalarySalary consistsconsists ofof twotwo partsparts ii..ee.. earningsearnings &&

deductionsdeductionsyy ProvidentProvident FundFund isis oneone ofof thethe statutorystatutory deductiondeduction

donedone byby thethe employeremployer atat thethe timetime ofof salarysalary

paymentpayment

yy ProvidentProvident FundFund isis governedgoverned byby thethe EmployeesEmployees

ProvidentProvident FundFund ActAct 19521952

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IntroductionIntroduction

ProvidentProvident FundFund hashas comecome intointo forceforce toto givegive betterbetter futurefuturetoto employeesemployees onon theirtheir retirementretirement && hishis dependantsdependants inincasecase ofof hishis deathdeath duringduring employmentemployment

TheThe EmployeesEmployees ProvidentProvident FundsFunds Act Act 19521952 isiscompulsorycompulsory contributorycontributory fundfund forfor thethe futurefuture ofof anan

employeeemployee afterafter retirementretirement oror forfor hishis dependentsdependents inin casecaseofof hishis earlyearly deathdeath

ActAct isis applicableapplicable toto allall statesstates ofof IndiaIndia exceptexcept JammuJammu andandKashmirKashmir

EligibilityEligibility

EveryEvery industryindustry employingemploying 1010 oror moremore personspersons ((180180industriesindustries areare specifiedspecified inin ScheduleSchedule 11 ofof thethe Act)Act)

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Eligibility & EntitlementEligibility & Entitlement

EveryEvery employeeemployee employedemployed directlydirectly // throughthrough aacontractorcontractor whowho isis inin receiptreceipt ofof wageswages areare eligibleeligible totobecomebecome aa membermember ofof thethe fundfund (exception(exception --

ApprenticeApprentice underunder thethe ApprenticesApprentices ActAct andand casualcasual

laborers)laborers) IrrespectiveIrrespective ofof permanentpermanent // probationaryprobationary

employees,employees, allall employeesemployees areare eligibleeligible forfor joiningjoining

thethe PFPF schemescheme fromfrom thethe datedate ofof joiningjoining thethe serviceservice

Other industries maximum 12% of the basic payOther industries maximum 12% of the basic pay A member can contribute voluntarily more thanA member can contribute voluntarily more than

statutorily prescribed rate (upto 100% of basicstatutorily prescribed rate (upto 100% of basic

salary) which will be transferred to his PF A/csalary) which will be transferred to his PF A/c

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CalculationCalculation

1212%% contributioncontribution byby thethe employeeemployee isis directlydirectlytransferredtransferred toto hishis ProvidentProvident FundFund A/cA/c

1212%% isis contributedcontributed byby thethe employeremployer outout ofof whichwhich88..3333%% isis creditedcredited toto EmployeeEmployee PensionPension FundFund andand

thethe balancebalance 33..6767%% isis transferredtransferred toto PFPF A/cA/c ofof thetheemployeeemployee

11..1010%% AdministrationAdministration chargescharges onon totaltotal wageswages arearepayablepayable byby thethe employeremployer

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InterestInterest

InterestInterest isis creditedcredited toto thethe membersmembers PFPF A/cA/c onon monthlymonthlyrunningrunning balancebalance

InterestInterest raterate isis fixedfixed byby thethe CentralCentral GovernmentGovernment inin

consultationconsultation withwith thethe CentralCentral BoardBoard ofof trusteestrustees ofof EEPFEEPF

everyevery yearyear duringduring MarchMarch // AprilApril

TheThe presentpresent raterate ofof interestinterest isis 88..55%%

NominationNomination

TheThe membermember cancan nominatenominate otherother personperson // personspersons totoreceivereceive thethe FundFund amountamount inin thethe eventevent ofof hishis deathdeath

TheThe nominationnomination detailsdetails providedprovided byby thethe membersmembers arearemaintainedmaintained atat thethe RegionalRegional ProvidentProvident FundFund OfficeOffice forfor

useuse inin thethe eventevent ofof deathdeath ofof thethe membermember

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Annual Statement of AccountAnnual Statement of Account

After After thethe closeclose ofof eacheach yearyear ofof contribution,contribution, annualannualstatementstatement ofof accountaccount willwill bebe sentsent toto eacheach membermember

throughthrough establishmentestablishment wherewhere thethe membermember waswas lastlast

employedemployed throughthrough formform 2323..

FormForm 2323 willwill showshow thethe openingopening balancebalance atat thethe beginningbeginningofof thethe year,year, contributionscontributions duringduring thethe year,year, thethe amountamount ofof

interestinterest creditedcredited atat thethe endend ofof thethe periodperiod andand thethe closingclosing

balancebalance atat thethe endend ofof thethe yearyear

IfIf anyany errorerror isis noticednoticed inin FormForm 2323,, thethe membermember shallshallbringbring thethe samesame toto thethe noticenotice ofof thethe PFPF OfficeOffice throughthrough

employeremployer withinwithin 66 monthsmonths fromfrom thethe datedate ofof receiptreceipt ofof thethe

statementstatement 9


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Full SettlementFull Settlement

PFPF A/cA/c settledsettled immediatelyimmediately underunder thethe circumstancescircumstances;; RetirementRetirement afterafter 5858 yearsyears

RetirementRetirement onon accountaccount ofof permanentpermanent incapacityincapacity

TerminationTermination ofof serviceservice onon retrenchmentretrenchment

VoluntaryVoluntary RetirementRetirement SchemeScheme (VRS)(VRS)

PermanentPermanent migrationmigration fromfrom IndiaIndia toto settlesettle abroadabroad //takingtaking employmentemployment

ForFor femalefemale membersmembers leavingleaving serviceservice forfor gettinggetting

marriedmarried

PFPF A/cA/c settledsettled afterafter twotwo monthsmonths underunder thethe circumstancescircumstances;;

Resignation from the servicesResignation from the services

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Advances / WithdrawalsAdvances / Withdrawals

PurchasePurchase ofof sitesite forfor constructionconstruction ofof HouseHouse // purchasepurchase ofofflatflat

AdditionsAdditions // alterationsalterations // improvementsimprovements toto thethe househouse

RepaymentRepayment ofof loanloan

HospitalizationHospitalization forfor moremore thanthan aa monthmonth // majormajor surgicalsurgicaloperationoperation // sufferingsuffering fromfrom TB,TB, Leprosy,Leprosy, Paralysis,Paralysis,

Cancer,Cancer, HeartHeart ailmentailment etcetc

MarriageMarriage ofof selfself // sonson // daughterdaughter // sistersister // brotherbrother

EducationEducation ofof sonson // daughterdaughter PhysicallyPhysically handicappedhandicapped membermember forfor purchasingpurchasing anan

equipmentequipment toto minimizeminimize thethe hardshiphardship duedue toto handicaphandicap

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Employer Role & ResponsibilityEmployer Role & Responsibility

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Monthly ReturnsMonthly Returns

FilingFiling monthlymonthly PFPF returnsreturns withwith thethe EPFOEPFO withinwithin 1515 daysdaysofof thethe closeclose ofof eacheach monthmonth

ProvideProvide listlist ofof newnew employeesemployees joined joined inin thetheestablishmentestablishment duringduring thethe precedingpreceding monthmonth && areare

qualifiedqualified toto becomebecome membermember inin fundfund (Form(Form--55)) ProvideProvide listlist ofof employeesemployees leavingleaving serviceservice duringduring thethe

precedingpreceding monthmonth (Form(Form--1010))

EmployerEmployer shouldshould filefile 'Nil''Nil' returnsreturns ifif therethere isis nono newnewemployeeemployee oror nono employeeemployee leavingleaving thethe serviceservice duringduring

thethe precedingpreceding monthmonth

ProvideProvide thethe totaltotal nono.. ofof membersmembers lastlast month,month, newnewmembersmembers joinedjoined andand existingexisting membersmembers resignedresigned inin thethe

precedingpreceding monthmonth && totaltotal nono.. ofof presentpresent subscriberssubscribers toto

bebe fundfund (Form(Form--1212A)A) 13


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Annual ReturnsAnnual Returns

EmployerEmployer shallshall sendsend toto thethe CommissionerCommissioner withinwithin oneone monthmonth ofof

thethe closeclose ofof thethe year,year, aa consolidatedconsolidated Annual Annual ContributionContributionStatementStatement (Form(Form--66A)A) andand individualindividual employeeemployee sheetsheet (Form(Form--

33A) A) showingshowing thethe contributionscontributions mademade byby thethe employeesemployees andand

employeremployer duringduring thethe yearyear

PenaltyPenalty 12123737%% interestinterest isis payablepayable forfor thethe delayeddelayed periodperiod inin remittingremitting

contributions/contributions/ administrativeadministrative chargescharges dependingdepending uponupon thethe

delayeddelayed periodperiod

ExemptionExemption

EmployerEmployer cancan seekseek exemptionexemption fromfrom thethe SchemeScheme ifif similarsimilar //betterbetter benefitsbenefits areare providedprovided otherother thanthan thethe SchemeScheme byby formingforming

aa VoluntaryVoluntary PFPF TrustTrust whichwhich willwill workwork underunder thethe rulesrules &&

regulationsregulations ofof EPFOEPFO14


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Empl l ponsi ilitEmployee ole esponsi ility

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ProvideProvide detailsdetails ofof selfself && nomineesnominees (Form(Form--22)) forfor PFPF

&& PensionPension SchemeScheme atat thethe timetime ofof joining joining thetheestablishmentestablishment

InIn casecase ofof alreadyalready havinghaving PFPF A/c,A/c, applyapply forfor transfertransferofof previousprevious A/cA/c toto thethe presentpresent A/cA/c

IfIf willingwilling toto increaseincrease contribution,contribution, informinform thethe samesametoto thethe employeremployer toto deductdeduct thethe amountamount fromfrom thethe

salarysalary (Voluntary(Voluntary ProvidentProvident Fund)Fund)..

VoluntaryVoluntary PFPF cancan bebe uptoupto 100100%% ofof wageswages

UnderstandUnderstand thatthat thethe employeremployer isis notnot liableliable toto paypayanyany contributioncontribution onon voluntaryvoluntary PFPF

UnderstandUnderstand thatthat Employees'Employees' ProvidentProvident FundFund

OrganizationOrganization doesdoes notnot havehave anyany agentagent // 16


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Employees ension eme 1995Employees ension eme 1995

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IntroductionIntroduction

ToTo givegive longlong termterm protectionprotection // financialfinancial securitysecurity totoemployeeemployee uponupon retirementretirement andand hishis familyfamily inin casecase ofof hishisprepre--maturemature death,death, familyfamily pensionpension schemescheme hashas comecome intointoforceforce byby divertingdiverting 88..3333%% contributioncontribution mademade byby employeremployertowardstowards PFPF schemescheme

ApplicationApplication SchemeScheme isis compulsorycompulsory forfor allall thethe existingexisting membersmembers whowho

becomebecome membersmembers ofof thethe EmployeesEmployees ProvidentProvident FundFundSchemeScheme

EligibleEligible MonthlyMonthly pensionpension toto employeesemployees onon retirementretirement WidowsWidows onon deathdeath ofof thethe membermember ChildrenChildren ofof thethe membermember belowbelow 2525 yearsyears ageage

MonthlyMonthly pensionpension toto membersmembers uponupon permanentpermanent totaltotal 18


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The Employees Deposit-LinkedInsurance Scheme 76

(EDLI)


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ApplicationApplication

EDLIEDLI schemescheme isis compulsorycompulsory forfor allall thethe existingexistingmembersmembers whowho becomebecome membersmembers ofof thethe PFPF SchemeScheme

LifeLife insuranceinsurance benefitbenefit (death(death coverage)coverage) ofof thethe employeeemployeeisis availableavailable underunder thisthis schemescheme whilewhile inin serviceservice

CalculationCalculation

EDLIEDLI isis calculatedcalculated onon EDLIEDLI slabslab RsRs.. 65006500//--

00..5050%% EDLIEDLI calculatedcalculated onon totaltotal EDLIEDLI slabslab (Rs(Rs.. 65006500))wageswages andand transferredtransferred toto EDLIEDLI fundfund

00..0101%% EDLIEDLI AdministrationAdministration chargescharges calculatedcalculated onon totaltotalEDLIEDLI wageswages

EDLIEDLI // administrationadministration chargescharges areare payablepayable byby thetheemployeremployer

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EligibleEligible PersonPerson whowho isis eligibleeligible toto receivereceive PFPF duesdues ofofdeceaseddeceased membermember whowho dieddied whilewhile inin serviceservice isis

onlyonly eligibleeligible toto receivereceive EDLIEDLI fundfund

ExemptionExemption

EmployerEmployer cancan seekseek exemptionexemption fromfrom thethe SchemeSchemeifif similarsimilar // betterbetter benefitsbenefits areare providedprovided otherother thanthan

thethe SchemeScheme withwith thethe consentconsent ofof majoritymajority ofofemployeesemployees

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List of FormsList of Forms

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Forms For Claiming Benefits UnderForms For Claiming Benefits Under PF SchemePF Scheme

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FormForm PurposePurpose

1313

(revised(revised

))

ForFor transferringtransferring thethe PFPF A/cA/c ofof aa membermember fromfrom oneone

establishmentestablishment toto anotheranother establishmentestablishment coveredcovered

underunder thethe ActAct // SchemeScheme

1414ApplicationApplication forfor financingfinancing aa lifelife insuranceinsurance policypolicy outout

ofof PFPF A/cA/c

1919ToTo bebe submittedsubmitted byby aa membermember toto withdrawwithdraw hishis PFPF

duesdues onon leavingleaving serviceservice // retirementretirement // terminationtermination

2020

InIn thethe eventevent ofof deathdeath ofof member,member, thisthis formform isis toto bebe

usedused byby aa nomineenominee // familyfamily membermember toto claimclaim thethe

member'smember's PFPF accumulationaccumulation

3131

ForFor thethe useuse ofof PFPF membersmembers toto availavail advancesadvances //

withdrawalswithdrawals asas providedprovided inin thethe schemescheme


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Forms For Claiming Benefits UnderForms For Claiming Benefits Under PensionPension

SchemeScheme

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10 C10 CTo be submitted by a member to withdraw his EPSTo be submitted by a member to withdraw his EPS

fundfund

10 D10 D

To be submitted by the first claimant i.e.To be submitted by the first claimant i.e.

-- membermember

-- widow / widowerwidow / widower

-- OrphanOrphan

-- nomineenominee


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Forms For Claiming Benefits UnderForms For Claiming Benefits Under EDLI SchemeEDLI Scheme

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5 (I.F.)5 (I.F.)

ToTo bebe submittedsubmitted byby thethe personperson eligibleeligible toto receivereceive

thethe PFPF A/cA/c duesdues ofof thethe deceaseddeceased membermember whowho dieddiedwhilewhile inin servicesservices


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SummarySummary

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22 NominationNomination FormForm

55

ReturnReturn ofof EmployeesEmployees qualifyingqualifying forfor membershipmembership toto thethe Employees'Employees' ProvidentProvident

FundFund forfor thethe firstfirst timetime duringduring everyevery monthmonth.. WithinWithin 1515 DaysDays ofof thethe followingfollowing

monthmonth..

1010 ReturnReturn ofof membersmembers leavingleaving serviceservice duringduring thethe monthmonth..

12A12AConsolidatedConsolidated StatementStatement ofof duesdues andand remittanceremittance ByBy 2525thth ofof thethe followingfollowing

monthmonth toto whichwhich thethe duesdues relaterelate..

3A3A Member'sMember's annualannual ContributionContribution cardcard

6A6A ConsolidatedConsolidated annualannual contributioncontribution statementstatement


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January

Before 15th P.F., P.F. Challan

Before 25th P.F Form 5, 10 & 12A(P.F)

Monthly statutory register daily/end of the month

(Monthly statutory register should be maintained)

February

Same as January month

March

Before 15th P.F., P.F. Challan

Before 25th P.F Form 5, 10 & 12A(P.F)

P.F, P.F. Annual Returns form 6A & 3AMonthly statutory register daily/end of the month

(Monthly statutory register should be maintained)

April to December

Same as January month


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FAQFAQ


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Q1) What is the Contribution for ProvidentQ1) What is the Contribution for ProvidentFund both by the Employer & Employee ?Fund both by the Employer & Employee ?

Ans : The Employee contributes 12% of hisAns : The Employee contributes 12% of his/her Basic Salary & the same amount is/her Basic Salary & the same amount is

contributed by the Employer.contributed by the Employer.


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Q2) Is it Compulsory for the all the employeesQ2) Is it Compulsory for the all the employeesto contribute to the Provident Fund ?to contribute to the Provident Fund ?

Ans : Employees drawing basic salary upto RsAns : Employees drawing basic salary upto Rs6500/6500/-- have to compulsory contribute to thehave to compulsory contribute to theProvident fund and employees drawing aboveProvident fund and employees drawing aboveRs 6501/Rs 6501/-- have an option to become memberhave an option to become memberof the Provident Fund .of the Provident Fund .


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Q3) Is it beneficial for employees who drawQ3) Is it beneficial for employees who drawsalary above Rs 6501/salary above Rs 6501/-- to become member ofto become member of

Provident Fund ?Provident Fund ?

Ans Yes because provident fund contributionAns Yes because provident fund contribution

by the employer & employee is not a taxableby the employer & employee is not a taxableincome for Income Tax purpose.income for Income Tax purpose.


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QQ44)) WhatWhat ifif anan employeeemployee whilewhile joiningjoining establishmentestablishmenthashas aa basicbasic salarysalary ofof RsRs 42004200 andand afterafter somesome periodperiod ofof

timetime hishis basicbasic salarysalary increasesincreases aboveabove RsRs 65016501//--,, doesdoes

hehe havehave anan optionoption toto terminateterminate hishis membermember shipship formform

thethe ProvidentProvident fundfund act?act? AnsAns :: EmployeeEmployee whowho whilewhile joiningjoining thethe organisationorganisation

hashas aa basicbasic salarysalary aboveabove RsRs 65016501//-- havehave anan optionoption toto

eithereither becomebecome oror avoidavoid becomingbecoming membermember ofof ProvidentProvident

fundfund butbut employeesemployees whosewhose basicbasic salarysalary whilewhile joiningjoiningthethe organisationorganisation isis lessless thenthen RsRs 65016501//-- butbut afterafter somesome

periodperiod ofof timetime theirtheir basicbasic increasesincreases aboveabove RsRs 65016501//--

havehave toto compulsorilycompulsorily continuecontinue toto bebe membermember of of

providentprovident FundFund..


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Q5) What is the contribution percentage to theQ5) What is the contribution percentage to theProvident fund and Pension Scheme ?Provident fund and Pension Scheme ?

Ans : Employers contribution of 12% of basicAns : Employers contribution of 12% of basicsalary is totally deposited in provident fundsalary is totally deposited in provident fundaccount Whereas out of Employeesaccount Whereas out of Employeescontribution of 12% , 3.67% is contributed tocontribution of 12% , 3.67% is contributed toProvident fund and 8.33% is deposited inProvident fund and 8.33% is deposited inPension scheme.Pension scheme.


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Q6) Which form has to be filled whileQ6) Which form has to be filled whilebecoming member of provident fund ?becoming member of provident fund ?

Ans : Nomination Form No 2 has to be filledAns : Nomination Form No 2 has to be filledto become a member of the Provident fund,to become a member of the Provident fund,

form is available with HR department .form is available with HR department .


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Q7 ) Which form has to be filled whileQ7 ) Which form has to be filled whiletransferring provident fund deposit ?transferring provident fund deposit ?

Ans : You just have to fill form no 13 toAns : You just have to fill form no 13 totransfer your P.F amounttransfer your P.F amount


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Q8 ) What is the provision of the scheme inQ8 ) What is the provision of the scheme in

the matter of nomination by a memberthe matter of nomination by a member??

AnsAns :: EachEach membermember hashas toto makemake aa nominationnomination totoreceivereceive thethe amountamount standingstanding toto hishis creditcredit inin thethe fundfund

inin thethe eventevent ofof hishis deathdeath.. IfIf hehe hashas aa family,family, hehe hashas totonominatenominate oneone oror moremore personperson belongingbelonging toto hishis familyfamilyandand nonenone otherother.. IfIf hehe hashas nono familyfamily hehe cancan nominatenominateanyany personperson oror personspersons ofof hishis choicechoice butbut if if hehe

subsequentlysubsequently acquiresacquires family,family, suchsuch nominationnominationbecomesbecomes invalidinvalid andand hehe willwill havehave toto makemake aa freshfreshnominationnomination ofof oneone oror moremore personspersons belongingbelonging toto hishisfamilyfamily.. YouYou cannotcannot makemake youryour brotherbrother youryour nomineenomineeasas perper thethe ActsActs..


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Q9 ) When is an employee eligible to enjoyQ9 ) When is an employee eligible to enjoypension scheme ?pension scheme ?

Ans : For an employee to become eligible forAns : For an employee to become eligible forPension fund, he has to complete membershipPension fund, he has to complete membership

of the Fund for 10 Years.of the Fund for 10 Years.


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Q10 ) What does it mean by continuous service of tenQ10 ) What does it mean by continuous service of tenyears ?years ?

AnsAns :: WhenWhen wewe saysay continuouscontinuous serviceservice ofof 1010 yearsyears inin

EmployeeEmployee PensionPension Fund,Fund, wewe meanmean toto saysay thatthat duringduringservices,services, forfor ee..gg..,, anan employeeemployee whowho hashas workedworked withwith XXcompanycompany forfor saysay 33 years,years, thenthen hehe resignedresigned fromfrom thatthatorganisationorganisation andand joinedjoined YY company,company, whereinwherein hehe workedworkedforfor 22 years,years, thenthen resignedresigned fromfrom therethere toto joinjoinestablishmentestablishment forfor 55 yearsyears butbut duringduring thesethese 1010 yearsyears ofofserviceservice hehe hashas notnot withdrawnwithdrawn butbut transferredtransferred hishisEmployeeEmployee pensionpension fund,fund, thenthen wewe saysay continuouscontinuous serviceserviceofof tenten yearsyears..


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QQ1111 )) WhenWhen cancan anan employeeemployee availavail thethe benefitbenefitofof EmployeeEmployee pensionpension fundfund schemescheme whichwhich hehe

hashas contributedcontributed duringduring hishis tenten yearsyears of ofcontinuescontinues serviceservice

AnsAns :: AnAn employeeemployee cancan availavail thethe benefitbenefit afterafter

completioncompletion ofof 5858 yearsyears ofof serviceservice..


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QQ1212 )) WhatWhat happenshappens toto thethe providentprovident fundfund &&EmployeeEmployee PensionPension fundfund ifif anan employeeemployee whowho

wantswants toto resignresign fromfrom thethe serviceservice beforebefore

completioncompletion ofof tenten yearsyears ofof continuescontinues service?service?

AnsAns :: EmployeeEmployee cancan withdrawwithdraw thethe PFPFaccumulationsaccumulations byby fillingfilling FormsForms 1919 && 1010 CC

whichwhich isis availableavailable withwith thethe HRHR departmentdepartment..


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Q13 ) What is this 19 & 10C form ?Q13 ) What is this 19 & 10C form ?

Ans : Form No 19 is for Provident fundAns : Form No 19 is for Provident fundwithdrawal & Form No. 10 C is for Pensionwithdrawal & Form No. 10 C is for Pension

scheme withdrawal.scheme withdrawal.


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Q14 ) Do we get any interest on the amountQ14 ) Do we get any interest on the amountwhich is deposited in the Provident Fundwhich is deposited in the Provident Fund

account?account?

Ans : Compound interest as declared by theAns : Compound interest as declared by the

Govt. is given for every year of service.Govt. is given for every year of service.


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Q15 ) What is the accounting year forQ15 ) What is the accounting year forProvident fund account?Provident fund account?

Ans : Accounting year is from March toAns : Accounting year is from March toFebruary.February.


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Q16 ) What are the benefits provided underQ16 ) What are the benefits provided under

Employee Provident Fund Scheme?Employee Provident Fund Scheme?

Ans : Two kinds of benefits are provided underAns : Two kinds of benefits are provided underthe schemethe scheme--

a) Withdrawal benefita) Withdrawal benefit

b) Benefit of nonb) Benefit of non --Refundable advancesRefundable advances


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QQ1717 )) WhatWhat isis thethe interestinterest onon thethe PFPFaccumulationsaccumulations ??

AnsAns :: CompoundCompound interestinterest asas declareddeclared bybyCentralCentral GovtGovt.. isis paidpaid onon thethe amountamount standingstanding

toto thethe creditcredit ofof anan employeeemployee asas onon 11stst AprilAprileveryevery yearyear..


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Q18 ) What is the purpose of the Employee's PensionQ18 ) What is the purpose of the Employee's PensionScheme ?Scheme ?

Ans : The purpose of the scheme is to provide forAns : The purpose of the scheme is to provide for 1) Superannuation pension.1) Superannuation pension.

2) Retiring Pension.2) Retiring Pension.

3) Permanent Total disablement Pension3) Permanent Total disablement Pension


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SuperannuationSuperannuation PensionPension:: Member Member whowho hashasrenderedrendered eligibleeligible serviceservice ofof 2020 yearsyears andand

retiresretires onon attainingattaining thethe ageage ofof 5858 yearsyears..


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RetirementRetirement PensionPension:: member member whowho hashasrenderedrendered eligibleeligible serviceservice ofof 2020 yearsyears andand

retiresretires or or otherwiseotherwise ceasesceases toto bebe ininemploymentemployment beforebefore attainingattaining thethe ageage of of 5858

yearsyears..


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ShortShort serviceservice PensionPension:: MemberMember hashas toto renderrendereligibleeligible serviceservice ofof 1010 yearsyears andand moremore butbut lessless

thanthan 2020 yearsyears..


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QQ1919 )) HowHow muchmuch timetime doesdoes itit taketake toto receivereceive PP..FF &&pensionpension moneymoney if if anan employeeemployee resignsresigns fromfrom thetheService?Service?

AnsAns :: NormallyNormally thethe procedureprocedure forfor receivingreceiving PP..FF &&PensionPension moneymoney isis ,, thethe employeeemployee hashas toto fillfill 1919 && 1010 ccFormForm andand submitsubmit thethe samesame toto PFPF DeskDesk ,, whichwhich isis thenthensubmittedsubmitted toto thethe PP..FF officeoffice afterafter twotwo months,months, thisthis twotwo

monthsmonths isis nothingnothing butbut aa waitingwaiting periodperiod asas thethe rulesrules arearethatthat anan employeeemployee shouldshould notnot bebe inin employmentemployment forfortwotwo monthsmonths afterafter resigningresigning ifif hehe hashas toto withdrawwithdraw hishisPP..FF amountamount.. AfterAfter completioncompletion ofof twotwo monthsmonths thethe formformisis submittedsubmitted toto thethe regionalregional providentprovident fundfund

CommissionerCommissioner officeoffice afterafter whichwhich thethe employeeemployeereceivesreceives hishis amountamount alongalong withwith interestinterest withinwithin aaperiodperiod ofof 9090 daysdays..


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QQ2020 )) DoDo wewe receivereceive moneymoney throughthrough postalpostalorderorder ??

AnsAns PreviouslyPreviously therethere waswas aa procedureprocedure whereinwhereinmembermember useuse toto getget PP..FF throughthrough PostalPostal orderorder butbutnownow WhileWhile submittingsubmitting thethe PP..FF formformwithdrawalwithdrawal formform youyou havehave toto mentionmention youryour

savingsaving BankBank accountaccount NoNo.. && thethe completecompleteaddressaddress ofof thethe Bank Bank wherewhere youyou holdhold thetheaccountaccount..


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QQ2121 )) HowHow wouldwould II knowknow thethe amountamount ofof

accumulationsaccumulations inin mymy PFPF accountaccount ??

AnsAns :: PFPF officeoffice sendssends anan annualannual statementstatementthroughthrough thethe employeremployer whichwhich givesgives detailsdetails

aboutabout thethe PFPF accumulationsaccumulations.. TheThe statementstatementcontainscontains detailsdetails like,like, OpeningOpening balance,balance, amountamount

contributedcontributed duringduring thethe year,year, withdrawalwithdrawal duringduring

thethe year,year, interestinterest earnedearned andand thethe closingclosing

balancebalance inin thethe PFPF accountaccount.. ThisThis statementstatement isis

sentsent byby thethe PFPF departmentdepartment onon completioncompletion ofof

thethe financialfinancial yearyear..


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Q22 ) Which establishments are covered byQ22 ) Which establishments are covered by

the Act ?the Act ?

AnsAns :: AnyAny establishmentestablishment whichwhich employsemploys 2020 orormoremore employeesemployees.. ExceptExcept apprenticeapprentice andand casualcasual

laborers,laborers, everyevery EmployeeEmployee includingincluding contractcontractlabourlabour whowho isis inin receiptreceipt ofof basicbasic salarysalary upup toto

RsRs.. 65006500 pp..mm.. isis coveredcovered byby thethe ActAct..


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QQ2323 )) InIn casecase afterafter registeringregistering thethe establishmentestablishment

atat anyany pointpoint inin time,time, thethe numbernumber ofof employeesemployeesworkingworking inin itit becomesbecomes lessless thanthan 2020 thenthen willwill thethe

ActAct applyapply ??

AnsAns :: AnyAny establishmentestablishment whichwhich hashas beenbeencoveredcovered underunder thethe ActAct onceonce shallshall continuecontinue toto bebe

governedgoverned byby thethe ActAct eveneven if if thethe numbernumber ofof

personspersons employedemployed thereintherein atat anyany timetime fallsfalls

belowbelow 2020..


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QQ2424 )) IsIs thethe ActAct applicableapplicable toto aa factoryfactory whichwhichisis closedclosed downdown butbut isis employingemploying aa fewfewemployeesemployees toto look look afterafter thethe assetsassets ofof thethe

establishmentestablishment ?? AnsAns :: No,No, WhereWhere thethe establishmentestablishment isis closedclosed

downdown andand onlyonly fourfour securitysecurity menmen areare employedemployedforfor keepingkeeping aa watchwatch overover thethe assetsassets andand

propertiesproperties ofof thethe establishments,establishments, thethe ActAct wouldwouldnotnot bebe applicableapplicable..


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QQ2525 )) IsIs aa traineetrainee anan employeeemployee underunder thethe ActAct ??

AnsAns :: Yes,Yes, aa traineetrainee wouldwould bebe consideredconsidered asas ananemployeeemployee asas perper thethe ActAct butbut inin casecase thethe traineetrainee

isis anan apprenticeapprentice underunder thethe Apprentice'sApprentice's ActAct

thenthen he/he/ sheshe willwill notnot bebe consideredconsidered asas ananemployeeemployee underunder thisthis ActAct..


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QQ2626)) IsIs itit possiblepossible toto appealappeal thethe ordersorders ofof thetheCentralCentral GovernmentGovernment oror thethe CentralCentral ProvidentProvident

FundFund CommissionerCommissioner ??

AnsAns :: Yes,Yes, therethere isis aa bodybody calledcalled asas ProvidentProvidentFundFund AppellateAppellate TribunalTribunal wherewhere anan employeremployer

cancan appealappeal..


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Q27 ) Who is the authority to decide regardingQ27 ) Who is the authority to decide regardingthe disputes if any ?the disputes if any ?

Ans : In case there is a dispute regarding theAns : In case there is a dispute regarding theapplicability of the Act or the quantum ofapplicability of the Act or the quantum of

money to be deducted etc. the authority tomoney to be deducted etc. the authority todecide are thedecide are the


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QQ2828 )) WhatWhat inin casecase therethere areare workersworkers involvedinvolvedasas ContractContract labourlabour ??

AnsAns :: ItIt isis thethe responsibilityresponsibility ofof thethe ContractorContractortoto deductdeduct thethe PFPF andand submitsubmit aa statementstatement toto thethePrincipalPrincipal EmployerEmployer inin thethe prescribedprescribed formatformat byby77thth of of everyevery monthmonth.. TheThe CompanyCompany becomesbecomesthethe PrincipalPrincipal EmployerEmployer wouldwould bebe responsibleresponsibleforfor thethe PFPF deductiondeduction ofof thethe workersworkers employedemployedonon contractcontract basisbasis..


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QQ3030 )) InIn casecase thethe ContractorContractor failsfails toto deductdeduct andandsubmitsubmit thethe PFPF amountamount fromfrom thethe contractcontract workersworkers thenthen

whatwhat isis toto bebe donedone ?? AnsAns :: TheThe CompanyCompany beingbeing thethe PrincipalPrincipal employeremployer isis

responsibleresponsible forfor thethe PFPF toto bebe deducteddeducted fromfrom thethe

ContractContract workersworkers asas wellwell.. InIn casecase thethe ContractorsContractors failsfails

toto deductdeduct andand submitsubmit thethe PFPF duesdues thenthen thethe CompanyCompanyhashas toto paypay thethe amountamount andand cancan laterlater onon recoverrecover thethe

amountamount fromfrom thethe ContractorContractor..


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QQ3131 )) CouldCould thethe employeremployer bebe punishedpunished inin casecasethethe remittanceremittance ofof contributioncontribution byby himhim isis

delayeddelayed inin aa BankBank oror postpost officeoffice ??

AnsAns :: Employer Employer cannotcannot bebe punishedpunished oror

penalizedpenalized inin casecase therethere isis aa delaydelay inin thetheremittanceremittance ofof thethe contributioncontribution onon accountaccount ofof

delaydelay inin BankBank oror postpost officeoffice..


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Q32 ) What happens in case there is a salaryQ32 ) What happens in case there is a salaryrevision and a raise in the basic salary of therevision and a raise in the basic salary of the

employee and arrears need to be paid, Do weemployee and arrears need to be paid, Do we

need to deduct PF from the arrears as well ?need to deduct PF from the arrears as well ?

Ans : Arrears are considered to be emolumentsAns : Arrears are considered to be emoluments

earned by the employee and PF is to beearned by the employee and PF is to bededucted from such arrears.deducted from such arrears.


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QQ3333 )) IsIs itit possiblepossible forfor anan employeeemployee toto contributecontribute atat aahigherhigher raterate ofof interestinterest thanthan 1212 %% ??

AnsAns :: Yes,Yes, ifif anan employeeemployee desiresdesires toto contributecontribute ananamountamount atat aa higherhigher raterate ofof interestinterest thanthan 1212 %% ofof basicbasic

salarysalary thenthen theythey cancan dodo soso butbut itit doesdoes notnot becomebecomeobligatoryobligatory forfor thethe employeremployer toto paypay anythinganything aboveabove

thanthan 1212 %%..ThisThis isis calledcalled voluntaryvoluntary contributioncontribution andand aa

JointJoint DeclarationDeclaration FormForm needsneeds toto bebe filledfilled upup wherewhere

thethe employeremployer andand thethe employeeemployee bothboth havehave toto givegive aadeclarationdeclaration asas toto thethe raterate atat whichwhich PFPF wouldwould bebe

deducteddeducted..


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Thank YouThank You

Date post:	09-Apr-2018
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