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EMPLOYEES PROVIDENT FUND(EPF)


Employees Provident Fund Employers deduct a certain amount of money at the time of paying salary to an employee under the Employee’s Provident Fund Act, 1952. EPF is a compulsory contribution that can be used post retirement by employees, or by their dependents if the employees meet with an early demise. Employees and employers can choose to voluntarily contribute more towards the EPF.


Contribution:●

Employee’s Contribution An employee’s contribution towards EPF is 12%.

Employer’s Contribution An employer’s contribution towards EPF is also 12%, but 8.33% is credited to Employee Pension Fund while the other 3.67% is credited to the employee’s PF account.


Benefits of Employee’s Provident Fund ●

The amount in an employee’s PF account can be withdrawn in case the employee retires, or needs funds for medical care, family obligations, children’s education, housing needs, etc. Up to 90% of the amount in an employee’s PF account can be withdrawn when he/she is 54 years of age, or prior to a year before retirement.

The legal heirs / nominees receive the PF amount of deceased individuals.

Tax exemption can be availed under Section 80C of the Income Tax Act, 1961.

Returns are completely tax-free.

Voluntary contribution can be up to 100% of the salary.


Settlement of PF The PF account of an employee can be settled immediately in case of the following: ●

Retirement after attaining 58 years of age

Termination of service

Retirement due to permanent incapacity

VRS (Voluntary Retirement Scheme)

Female employees who leave service to get married

Permanent migration from the country


Forms Used To Claim Benefits Under the PF Scheme ●

Form 13 – To transfer the PF account of an employee from one organisation to another organisation. Form 14 – Application to finance a life insurance plan out of the PF account. Form 19 – Members should submit this form to withdraw their PF dues when they retire or leave service or have their service terminated. Form 20 – Legal heirs / nominees should use this form in case of the member’s death to claim the PF amount. Form 31 – PF members should use this form to avail withdrawals / advances.


Form 10C – To claim refund of employer share, or scheme certificate for retaining membership, or withdrawal benefit. Form 10D – First claimant must submit this for (member / nominee / widow or widower). Form 5IF – The individual who is eligible for the PF account dues of a deceased member should submit this for in case of the death of the member.


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Epf  

Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s available to all salaried employees. This fund is maintained and overs...

Epf  

Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s available to all salaried employees. This fund is maintained and overs...

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