As per the rules, in EPF, employee whose 'pay' is more than Rs. 15,000 per month at the time of joining, is not eligible and is called non-eligible employee. Employees drawing less than Rs 15000 per month have to mandatorily become members of the EPF.
As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment. As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
EPF eligibility criteria
15,000 per month, it is mandatory for you to be opened an EPF account by your employer. Organizations with 20 or more employees are required by law to register for the EPF scheme, while those with fewer than 20 employees can also register voluntarily. If you are drawing a salary higher than Rs.- The PF is applicable to all establishment who engage 10 or more employee's. - All employee drawing basic salary/wages upto Rs. 6500/-. In case basic salary/wages exceeds more than 6500/- the employer is not bound to pay employer contribution towards PF.
The minimum mandatory PF contribution (and deduction) shall be Rs 1,800 per month (12% of Rs 15,000). b. If the PF wage of an employee is less than Rs 15,000 per month: The minimum mandatory PF contribution (and deduction) shall be 12% of the actual PF wage.
Tax benefits
Apart from the fact that an employee's contribution towards an EPF account is eligible for tax exemption under Section 80C , the interest rate earned is exempt from income tax. According to experts, your EPF account continues to earn interest even if it has been lying dormant for more than 3 years.Interest on the Employees' Provident Fund (EPF) is calculated on the contributions made by the employee as well as the employer. Contributions made by the employee and the employer equals 12% or 10% (includes EPS and EDLI) of his/her basic pay plus dearness allowance (DA).
Cost to company (CTC) is a term for the total salary package of an employee, used in countries such as India and South Africa. If an employee's salary is ₹50,000 and the company pays an additional ₹5,000 for their health insurance, the CTC is ₹55,000. Employees may not directly receive the CTC amount.
The Employees' Provident Fund Organisation (abbreviated to EPFO), is an organization tasked to assist the Central Board of Trustees, Employees' Provident Fund a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour
The EPFO Assistant exam is going to be conducted for 280 vacancies only. Considering the pay scale, benefits that this post offers and fewer vacancies, the competition is going to be very tough. Hence, you need to be very clear and strong with your concepts.
Eligible and interested candidates can apply online for EPFO Assistant Posts from 27 June to 21 July 2019. Candidates seeking to apply for the EPFO Social Security Assistant Posts should hold a Bachelor's Degree. As per the notification, a total of 2189 posts are avaiable across various regions of India.
CPFC : Shri Sunil Barthwal, IAS
| Address: | Employees Provident Fund Organisation, Head Office Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place New Delhi - 110066 |
| Telephone: FAX: E-Mail: | 26172671 26189910 cpfc[at]epfindia[dot]gov[dot]in |
Out of employer's contribution, 8.33% will be diverted to Employees' Pension Scheme, but it is calculated on Rs 15,000. So, for every employee with basic pay equal to Rs 15,000 or more, the diversion is Rs 1,250 each month into EPS. If the basic pay is less than Rs 15000 then 8.33% of that full amount will go into EPS.
RPFC stands for "Regional Provident Fund Commissioner" this is the quasi judicial authority appointed in every region to take care of rights and duties given under the PF Act.
However, there is no proposal at present to dismantle and merge of Employees' State Insurance Corporation (ESIC), Employees Provident Fund Organization (EPFO) with other central schemes and privatization of social security fund.
EPFO Assistant Salary & Job Profile 2019: EPFO has released 280 vacancies for the post of an Assistant. It provides both a prolific work profile and a lucrative salary. It is a fruitful opportunity for all the candidates who are preparing for government job exams.
In its ruling on 28 February, 2019, the Supreme Court has held that 'allowances', paid by employer to its employees, will be included in the scope of 'basic wages' and hence subject to Provident Fund contributions.
For most people the fact that both the contributions are deducted from the salary every month and only the net salary is paid is a good enough reason to opt for the EPF scheme. They don't trust themselves to invest the money regularly should it be paid to them instead of being contributed to the EPF.
Interest is not credited to the EPF account only when it becomes inoperative—when one attains the age of 58 years and does not withdraw the EPF. Assuming your age is less than 58 years, your account will continue to earn interest. However, the interest earned in this account will be taxable.
Yes, It is mandatory to have an EPF account by the employer for the employees who have a basic salary plus dearness allowance is up to Rs. 15,000. And those who are earning above Rs. 15,000 is not compulsory but may contribute voluntarily.
Do not withdraw EPF when you are on a career break. You can earn interest on PF balance for up to 3 years without any contribution. However, the interest earned during this period is taxable. Withdrawal of funds after 5 years of service attracts no TDS.
Does the EPF set a minimum age to contribute? There is no minimum age limit, every employee is liable to contribute. However, Act 350 - the Child And Young Persons (Employment) Act 1996 (Revised 1998) has set 14 years old as the minimum age for employment.
While contributing towards EPF is mandatory for those earning basic wages of up to Rs 15,000. Those earning basic wages more than 15000 per month, EPF contribution is not mandatory.
Yes, employees can opt-out of EPF if their basic salary + DA is less than or equal to Rs. 15,000. Be advised that you cannot opt-out of PF if you are already part of it while being employed. You can do so when you switch companies and inform your employer that you don't want to contribute to your PF account.
It manages the compulsory savings plan and retirement planning for private sector workers in Malaysia. Membership of the EPF is mandatory for Malaysian citizens employed in the private sector, and voluntary for non-Malaysian citizens.
Yes, you can opt out of an EPF, but it can be done only at the time when you enter your first job or get your first salary. Opting out of EPF scheme will get all your salary amount in hand without any deductions. You can choose to opt out of EPF scheme at your first job where you earn more than Rs. 15,000 per month.
If you still find your employer has not deposited the deducted PF with the trust or EPF, you can file a complaint with either Regional Provident Fund Commissioner or a criminal case against your employer with the police or complain to the chief vigilance officer appointed by the labor ministry.
Employees exempted from the coverage of the Employees' Social Security Act, 1969 are as follows: Federal and State Government permanent employees. Domestic servants. Self-employed.
Yes, your current employer can view your previous employers using your UAN. All they need to do is access the Know your UAN feature on the portal. As per the government of India and the EPFO rules, each individual is required to have one UAN number only, not multiple UANs.
