1. PF Applicability :-
PF Applicable on 20 or More Employees in a Company.
PF Department Clubs One Owner All Company In Ones.
Company Also Takes Voluntary Registration Under the Act with Employees less than 20.
Up to 15000 basic + DA salaried employees become members of provident fund.
After becoming a member of the fund, the employee will be continued as a member in the PF scheme.
More then 15000 basic + DA salaried new employees can't become a member in the pension fund.
2. Benefit of EPF Act:-
Provident Fund: - These benefits are a money saving benefit for the future purpose.
EDLI: It is a Life Insurance Benefit of min Rs. 250000 to max 700000 lakhs depending on services.
Pension Benefits: - This benefit gives Pension benefit after retirement/Death/ 12. Disability to member or nominee upto two children.
Advance Loan Benefits: An Employee takes advantage of PF in any emergency depending on services.
3. PF Exemption:-
Must issue a Appointment Letter
Basic must be more than 15000 in Appointment Letter
Salary Must be paid through Bank Transfer/Cheque only
No previous membership of employees of PF
Basic must be more than 15000 in salary sheet for PF Exemption.
Must be filled with a Form 11 without previous employment details .
4. PF Contribution:-
Employee Share: 12% of Basic+DA plus all allowances except HRA upto 15000/- salaried.
Employer Share: 12% of Basic+DA plus all allowances except HRA upto 15000/- salaried.
Employer Admin Share: 0.5 % of Basic+DA plus all allowances except HRA upto 15000/- salaried.
Employer EDLI Share: 0.5 % of Basic+DA plus all allowances except HRA upto 15000/- salaried.
PF is the biggest Social Benefit Scheme of India so please give maximum benefit to their employees.