This is Ravi Verma, In this article, I will tell you Questions and Answers about EPF.
- What is provident fund?
Provident fund (PF Act, 1952) is one of the main savings platforms in India, When an employee works in a company, he is paid a salary by the company and under this, the employer deducts some amount from his salary and deposits it in the Employees Provident Fund, And the percentage by which the employer deducts some amount from his employee’s salary and deposits it in his employee’s provident fund, the same amount is deposited by the employer in his employee’s provident fund on his behalf.
- What is the contribution for provident fund by the employee and employer?
In any company, the employer deducts 12% of his employee’s salary and pays the remaining amount as salary and the deducted peso is credited to the employer’s provident fund and the employer deducts his employee’s salary and the amount equal to the amount paid and he deposits it in his Employees’ Provident Fund.
- Which establishments are covered under PF Act?
In any organization or establishment, 20 or more persons are employed than the organizations covered under EPF Act, 1952 and they can start a provident fund scheme for the employees.
- What is the threshold limit of provident fund?
The provident fund 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.
- What is form 19 & 10C?
Form 19 is used for provident fund withdrawal and form 10C is used for pension scheme withdrawal.
- 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.
- Which employees are excluded from this scheme?
An employee who was a member of this scheme and withdrawn all amounts of his contribution based on either retirement from service after attaining the age of 55 years or who migrating abroad for permanent settlement.
An employee whose salary (BASIC+DA) at the time of entry into the scheme is more than Rs.15, 000.
If a member is considered as an apprentice then he will not come under EPF.
- Who is responsible to deposit to EPF Scheme?
Your employer has the whole responsibility to deposit all amounts, which are deducted from the employee as well as an employer contribution.
- What is UAN number?
UAN stands for Universal Account Number to be allotted by EPFO. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under a single Universal Account Number.
- Is UAN and PF Number same?
Your UAN allows you to withdraw the entire amount in your PF account.
The PF Number allows you to withdraw funds from the corresponding PF account only.