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ABout

ELIGIBILITY

Required documents

ABOUT PF(Provident Fund)

Any establishment which employs 20 or more employees except apprentice and casual labourers, but including contract labour who is in receipt of basic salary up to Rs. 6500 p.m. is covered by the Act. Provident fund is the collective contribution @ 12% or more made by the employer and employee during the lifetime of service of an employee. This collected amount are deposited with the PF department and returned to the employee along with interest during his service after attaining a certain age of 54 up to a maximum ceiling limit set by the government or during his retirement to provide monetary benefits. There are various kinds of provident funds like Statutory, Voluntary, Recognised, Unrecognised, Public Provident Fund.

ELIGIBILITY

This is a regional license and the process may vary state-wise. The minimum number of employees for provident fund registration should be 20. Employees drawing basic salary up to Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund.

Required Documents

  • Any document proving the existence of a business setup (MOA/AOA/Partnership deed/Registration certificate etc)
  • Any document proving the date of set up of entity (First sale invoice/License/First assessment order etc)

HELP

HELP

The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer.
Employees drawing basic salary up to Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund.
Yes because provident fund contribution by the employer & employee is not a taxable income for Income Tax purpose.
Employee who while joining the organization has a basic salary above Rs 6501/- have an option to either become or avoid becoming member of Provident fund but employees whose basic salary while joining the organization is less then Rs 6501/- but after some period of time their basic increases above Rs 6501/- have to compulsorily continue to be member of provident Fund.
Employee can withdraw the PF accumulations by filling necessary Forms.
Compound interest as declared by the Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.
Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20.
Yes, if an employee desires to contribute an amount at a higher rate of interest than 12 % of basic salary then they can do so but it does not become obligatory for the employer to pay anything above than 12%. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted.
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