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Understanding PF Limit for Employees and PPS Download Procedure


Dear All,

Can anyone tell me the PF contribution limit of an employee per month? One of my friends told me there is no limit regarding the contribution of the employee. Is it true? Please explain.

Thanks,
BINUMS
From India, Thiruvananthapuram
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Dear Binu,

Employee contribution under EPF should always be restricted to 12% only. Apart from this, we can have a Voluntary Provident Fund called VPF, about which even I am trying to get details. VPF is something where we see only the employee contributing a certain percentage of the amount, and this amount will get added to his total PF account only.

My email is . Please email me your ID, and I will send you the details about VPF once I get them if you want to know more about VPF.

Regards,
Amith R.
From India, Bangalore
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Dear All,

As per the PF Act, the minimum contribution is 12% by an employee, and the same, i.e., 12%, is contributed by the employer. From the employer's 12% contribution, 8.33% (i.e., an amount maximum up to Rs. 541.00) on the maximum basic of Rs. 6500.00 is contributed towards the Pension Fund, and the balance towards the Provident Fund Account.

Regarding the Voluntary Provident Fund (VPF), it can be a maximum of another 12%. For any contribution towards the VPF, the Principal Employer has no liability. This means if an employee contributes 24% (12% mandatory part & 12% VPF) towards the Provident Fund, the employer's share will still be 12%. The whole amount deducted towards VPF will go into the Provident Fund Account and not in the Pension Account.

Hope this will clear your queries.
From India, Delhi
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Hi Rajeev,

I have one more query. Suppose an employee's basic salary is 10000, then his PF would be 1200/-. Is it compulsory that the employer also has to contribute 1200/-, or can he just give 780/-, which is the maximum as per the rules?

Thanks,
Chitra
From India, Mumbai
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Dear Chitra,

In your particular case, the employer will contribute Rs. 1200.00. An amount of Rs. 541.00 (which is the maximum limit for the contribution for the Pension Fund) will go into the Pension Fund, and the rest of the amount will go into the Provident Fund Account.
From India, Delhi
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Hi,

Thank you for the reply, but I don't want it particularly for my case. I want to know, on a general basis, what is the practice of deduction from the employer's side if the basic is more than the PF limit. Is it compulsory for the employer to contribute an equal amount?

Chitra
From India, Mumbai
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Employer contribution is restricted to max 12% of basic+da, but employees contribution is min 12 % and can go for VPF contribution upto 20 % of Basic+DA............
From India, Mumbai
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Dear Rajeev,

Thanks for the clarification about VPF. My major queries about VPF are the percentage and also do we need to take permission from PF commissioner by filling any particular form. For this, I have checked with the Enforcement officer and am awaiting his reply. Anyways, thanks again.

Dear Chitra,

If any employee is covered under EPF, then it's a must to deduct the same percentage of the amount from both the employee and employer. The only difference, as mentioned by Rajeev, is if the basic is more than Rs 6500, you have to deduct 12% on the exact basic from the employee's side and 12% of only Rs 6500 towards the Pension fund (this is called as restricted wage for pension calculation), and the difference amount should be considered as Employer PF contribution. Hope it's clear for you now. You can also visit the PF website for more details at www.epfindia.com.

Regards,
Amith R.
From India, Bangalore
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Hi All This is ratheesh, I am getting a pay of 8115/m and what should be my take home sal /m as per the CMMI level 5 norms
From India, Selam
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Dear All,

Thanks for the valuable replies. I want to ask one more question. As far as my knowledge goes, the PF Contribution limit of the Employer is Rs. 780 (based on Rs. 6500 Basic+DA). Now, some vastly experienced people are saying the Employer PF limit is Rs. 900/- (based on Rs. 7500 Basic+DA). When I checked the EPF website, it states only Rs. 6500. I don't know where they got the new rate from. If you have any idea about this subject, please share with me.

Thanks In Advance,
BINUMS
From India, Thiruvananthapuram
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Dear Binu,

The contribution is still Rs. 6500 only. When it comes to the employer's limit, it can be more than Rs. 780. What I mean to say is it's not necessary to restrict it to Rs. 780, i.e., basic pay + DA of Rs. 6500 only. You can find a detailed explanation of this on the first page by Rajeev and me. Once again, I would like to emphasize that the basic pay + DA limit for PF is still Rs. 6500 only.

Regards,
Amith R.
From India, Bangalore
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Dear Binu,

In case an employee's basic+DA is Rs. 10,000 and your company is deducting PF on the exact basic+DA, i.e., Rs. 10,000, he can never come back to Rs. 6,500 and pay only for that. If he is paying PF on only Rs. 6,500, even though your basic+DA is Rs. 10,000, in such a case he can limit your PF to Rs. 780 only. Hope it is clear for you now. If not, do get back to me.

Regards,
Amith R.
From India, Bangalore
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Dear Binums,

Please go through the link [http://epfindia.nic.in#top](http://epfindia.nic.in#top) and read point 24 for your query.

As per the Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A., and retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires, i.e., up to 100% of basic and D.A. However, the employer is not bound to contribute at the enhanced rate.
From India, Kota
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Both the employee and employer have to contribute 12%. However, the employee can contribute higher than 12% as voluntary contribution. The employer's contribution will certainly be limited to 12% (8.33% to the Pension Fund and 3.67% to the Provident Fund).

There is no limit to the voluntary contribution by an employee since such contributions will be purely a saving on the part of employees.
From India, Kannur
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Problem is nothing, thereis nothis like problem. Confused look at the attached file for confirmation. Regards Debajit Roy
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pps BolivianHighway1.pps (703.0 KB, 161 views)

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Hi all, I want to know when PF becomes optional?? if someones basic is more than 10k than also he is eligibale for PF??
From India, Vadodara
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Dear Binums,

There is a limit as per the PF Act, i.e., Rs. 6500/- per month. The employer can deduct @12% only, not more than that. However, the employee should not be a member of the Provident Fund anywhere in India. He has to declare in Form No. 11 of the PF Act.

Regards,
Khushbu
From India, Delhi
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Dear Binu,

In case an employee's basic+DA is Rs. 10,000 and your company is deducting PF on the exact basic+DA, i.e., Rs. 10,000, he can never come back to Rs. 6,500 and pay only for that. If he is paying PF on only Rs. 6,500, even though your basic+DA is Rs. 10,000, in such a case, he can limit your PF to Rs. 780 only. Hope it is clear for you now. If not, do get back to me.

Regards,
Amith R.

---

I have a question:

My company's salary breakup:

Earnings & Deductions
Salary Breakup
Earnings

Basic 12,000
HRA 6,000
Conveyance 800
Medical Allowance 1,250
P Fund 780
Special Allowance 1,500
Other Allowance 2,670

Gross Salary 25,000

Deductions
Professional Tax** 200
Income Tax* 0
P Fund -1,633
Medclaim 0
Gratuity -500

Total Deductions 2,333

Net Salary Per Month 22,667
Per Annum Salary 300,000

Please let me know if it's correct. I think PF should be in earnings... Please reply.
From India, Mumbai
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We have an option to limit the PF of employees. We can limit the PF at not less than Rs. 780.00. For employees with less than Rs. 6500 basic salary, PF should be full up to 12%. For employees with more than Rs. 6500 basic salary, PF can be limited to Rs. 780.00.

Please feel free to contact me for any other details at ranjithhrm@yahoo.co.in.
From India, Hyderabad
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Dear Vaishali,

In such a case, you are eligible for PF, but it becomes optional. If you want, you can opt for PF, and your employer can contribute PF on the exact basic or on a Rs. 6500 basic only. Hope this is clear for you now. You can visit www.epfindia.com for more details.

Dear Madhu,

As you have mentioned that we don't have a percentage restriction, that would also imply that the employee cannot choose a very high percentage. What are your thoughts on this?

Regards,
Amith R.
From India, Bangalore
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Dear Geeta,

I have a small clarification regarding your question. First, you mentioned P - Fund as Rs 780, which is fine. However, what is P - Fund 1633 that you mentioned the second time? Please clarify this for me.

In the above case, PF should be considered only in deductions and should be Rs 780, not in earnings. What is the second P - Fund that you have mentioned above?

Regards,
Amith R.
From India, Bangalore
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Dear All,

Thanks for all the new replies. Now I will share what I understand from your replies. If I am wrong, all of you are welcome to correct my mistakes.

The normal contribution limit of an employee to PF is Rs. 780 (based on a Basic+DA of Rs. 6500). However, an employee can contribute whatever amount he likes. For example, he can contribute even Rs. 6000 per month, but the employer's contribution will be limited to Rs. 780 only. This is all I understand about the employee's contribution to PF from the earlier discussion.

Regarding the employer's contribution to PF, I will ask further questions. First, I want to clarify this part, which is about the employee's contribution to PF. If you don't agree with my idea, please let me know.

Thanks,
BINUMS
From India, Thiruvananthapuram
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Hi Ratheesh , Even its CMMi Level company deductions will be differ as per the company . But normally maximum 1400/- it will not stretch more then this.
From India, Madras
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Chitra,

If you implement the rule across to all employees, then you can keep the company contribution at 780. However, in that case, the 1200, which is the employee's contribution, will be a higher percentage than 12%. As per the information available to me, an employee can contribute up to 30% of their actual basic as their own contribution. I am not sure about VPF.

Vinit
From India, Delhi
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PF cannot bein earnings it is always to be in deductions. If you are deducting 1633 under pf, while filling return you will have to work out a higher % in the employee contri column. Vinit
From India, Delhi
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If an employee draws more than 6500 basic + DA then PF becomes his choice. If he chooses to not contribute to PF you need to take undertaking in writting from the employee. Vinit
From India, Delhi
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Hi All This is Mousumi, working in an Insurance Company, can any body help me out ,what are the things comes in Organization Development Policy Thanks Mousumi
From India, New Delhi
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Dear Chitra, I understand, in this case, it’s the employer’s discretion.The employer can choose to pay Rs.780 only.It is not compulsory to pay Rs.1200. Regards, Rune
From India, Madras
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Dear all,

Above the limit of Rs. 6500/-, it is not compulsory for the employer to contribute to the PF for the employee. The maximum amount that the employer is required to contribute is Rs. 780/- only. In the case where the basic salary + DA is Rs. 10000/- or above, is the employer's contribution of Rs. 780/- sufficient, or is the employer avoiding paying the contribution above Rs. 6500/- (basic + DA)?

Regards,
Sai
From India, Madras
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Dear Chitra,

If the basic salary is more than or equal to 6500/-, then depending on the company's policy, the company can either fix the PF deduction at Rs 780/- or can also provide the whole 12%. The company's PF contribution, however, comprises of 8.33% to EPS (with a limit of max. Rs. 541), and the rest goes to EPF.

Regards,
Anu
From India, New Delhi
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Hi Ranjith/Amith,

Based on your reply regarding the employer limit for PF contribution, what I understood is that the employer can cap the employer's contribution for 6500 basic, i.e., 780 per month. But, 1) Does the organization have the option of limiting employee contribution also at 6500 even though the employee's basic is above 6500? Because employer and employee contributions should be equal.

I didn't find an answer to the above question in your replies. Please provide information on this. I would appreciate it if you could attach any proof (EPF rules) for the same.

Regards,
Viranchi
From India, Hyderabad
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Hi,

The above statement is absolutely correct. However, in the case of employer contribution, the amount is 13.61% of the basic salary. The pension fund amount should not exceed 8.33% (i.e., 540) of a maximum of 6500. This means a maximum of Rs. 540 will be added to the pension account if the basic salary is more than Rs. 6500, and the remaining amount will be added to the PF account. For Voluntary Provident Fund (VPF), one can contribute any amount, but it must be declared in advance. If deposited in a bank or through an organization, the contribution rate would be 12%, as mentioned by a friend earlier. It is also possible to open a VPF account in a bank.

Regards,
Arun
From India, Delhi
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Dear Ramesh, In my opinion the limit is Rs 6500 i.e (Basic +D.A+retaining allow if )can be changed voluntary only. But the contribution % would be same i.e 12%. Rgds Shrvan
From India, Dehra Dun
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Hi Chitra,

It depends on the employer's choice whether they wish to contribute more than Rs. 780 or not. It is also possible that if one is drawing Rs. 10,000 basic + DA, then the employer can contribute Rs. 780 and the employee Rs. 1200*.

Ajay
From India, Coimbatore
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Dear All,

Please advise me on how I will transfer my PF amount from my previous employer. I worked for a Bombay-based public Ltd construction company with its registered office in Baroda. I was posted at Paradip, Orissa. In Aug-2002, the company transferred me to Bombay, but due to some personal problems, I did not go and then joined another organization. Since then, in 2007, I joined another organization, and my present employer is deducting PF from my salary. Now, I want to transfer the PF accumulation from the previous Bombay-based company to my present PF account. Please guide me on the subject.

Thank you.
From India, Bhubaneswar
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EPF is optional only for those who are drawing (at the time of joining) more than Rs 6,500. This means that those whose salary at the time of joining or on the date on which EPF is enforced in the establishment is not more than Rs 6,500 are covered by the Act compulsorily, and those others who draw more than Rs 6,500 shall be covered if the employer and employees agree. It is primarily up to the employer to decide whether those drawing more than Rs 6,500 shall be covered because if they are brought under EPF Schemes, the employer has to contribute 12% of the salary towards EPF, and once an employee is covered, he will continue to be covered irrespective of any increase in the salary. So, in the long run, the employer would be the sufferer and not the employee. For every 12% contribution he makes, the employee is getting an additional 12% by way of the employer's contribution, which is definitely a good saving for old age. Moreover, contribution to EPF is a tax saver also.

Regards, Madhu.T.K
From India, Kannur
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Dear Viranchi,

Yes, if for all these days the basic was equal to or less than you can certainly keep PF contribution of both the employee and employer to Rs 780 only when they get a hike in salary. However, in case you were already paying more than that, in such a case, you cannot reduce it to...

Dear Ashok,

You need to fill up Form-13 and hand it over to your present employer to get your PF transferred. This form can be downloaded from the PF website www.epfindia.com.

Regards,
Amith R.
From India, Bangalore
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Dear All,

As per my knowledge, if the employee's basic salary is more than 6500/-, the employee has a chance to choose the following options:

1. 12% on Basic
2. 780/- (12% on basic - basic is restricted to 6500/- in this case)

Even if you opt for any one of the above options, the employer's contribution will be 12% on basic (basic restricted to 6500/-). This is the general accounting practice in most companies.

Thanks & Regards,

VIJAYA BHASKAR. K
kvb1008@gmail.com
From India, Hyderabad
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Dear All, Whatever, basic is consider for PF subject to 6500 maximum limit for Employer’s contributin on maximum amount. more than that its wish of employer. Sagar
From United States, Los Angeles
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Hi,

I want some information on VPF. Can you help me with the following questions?

1. We are 20 employees, can we opt for VPF?
2. How much does the company have to contribute, i.e., is there any percentage for the company as well?

Regards,
Jessica
From India, Bangalore
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Dear Jessica,

VPF stands for Voluntary Provident Fund Contribution. The employer does not contribute towards the extra percentage of the Provident Fund contributed by the employee. The employer is only liable for 12%, as mandated by the EPF Act.

Additionally, VPF contribution is solely an option chosen by the employee; you cannot opt for VPF contribution on your own. I hope this clarifies your query.
From India, Delhi
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I feel the employer is obligated to pay a maximum of Rs.780/- only towards PF contribution, irrespective of the Basic pay, which crosses Rs.6500/- or more.

My boss, whose monthly basic is 1 lakh, is getting deducted Rs.780/- as the employer's contribution only.

Manikumar
From India, Bangalore
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The employer side has limit to contribute. But employee can contribute on 100% (VPF) from his side on basic + DA. However, only 541 amount goes to pension fund. Best Regards Prashant Patil
From India, Nagpur
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in my company we deduct 6% from employee salary and same percent is added by employer as well equal 12% per month
From Pakistan
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Dear Mr. Rajeev Verma,Whatever you have explained to Ms. Chitra, about the PF is perfectly alright.ThanksA. R. AnsariManager - HRAvaant Pharmaceuticals Pvt. Ltd.Mumbai022 - 2835 4415
From Qatar, Doha
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Dear Friend,

Kindly note the PF contribution details as per below: Basic + VDA (DA) @ 12%, whereas 8.33% Employee Provident Fund & 3.67% FPF are both employee contributions, whereby the employer also contributes in the same kitty 12% (8.33% Employee Pension Fund + 3.67% FPF).

The maximum limit of Basic is 6500/-. In that case, the maximum PF contribution is 541/- to EPF and the balance will go to FPF (780/-).

However, employees can voluntarily contribute to PF @12%.

Regards, Deepak Gehlot
From India, Delhi
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The following are the statutory rates of contribution under PF:

1a) Employer's contribution is 10% (for sick companies and where PF Act is made applicable voluntarily).
1b) Employer's contribution is 12% (all other cases).
Out of this 10%/12%, 8.33% is diverted to the pension fund and the balance 1.67%/3.67% is diverted to the provident fund. However, the employer's contribution is restricted to a maximum of 12% of Rs.6,500 (Basic+DA+Retaining Allowance).
Also, if the employer wishes to contribute based on a higher salary, they can do so, but the contribution to the pension fund will be restricted to 8.33% of Rs.6,500, and the balance will be diverted to PF (Rs.541).
The employee does not contribute to the pension fund, but the CG does.

The employee's contribution is from their own money (subject to a minimum of 10%/12%) and details thereof are to be provided in Form 3A and 6.

The benefits available under the PF & Misc Prov Act 1952 are a 3-in-1 benefit: Provident Fund, Pension Fund, and EDLI.

With effect from 01/11/1990, an employee is entitled to PF benefits from the Date of Joining.

After attaining 58 years of age, all contributions are diverted to the provident fund, i.e., 10%/12%.

NEXT-- HOW TO WITHDRAW/SETTLE YOUR PF ACCOUNT
From India, Delhi
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Dear Rajeev,

As far as VPF is concerned, any employee can contribute up to Rs. 9,000 per month or Rs. 108,000.00 annually. However, for annual savings under the IT Act, specifically under sec 80C, only Rs. 100,000.00 is considered. Additionally, please keep in mind that total deductions should not exceed 75% of total wages.

Dear All,
As per the PF Act, the minimum contribution required from an employee is 12%, which is also matched by the employer. Within the employer's 12% contribution, 8.33% (up to a maximum of Rs. 541.00) of the maximum basic amount of Rs. 6,500.00 is allocated towards the Pension Fund, with the remaining portion going to the Provident Fund Account.

Regarding VPF, employees can contribute an additional maximum of 12%. It's important to note that the Principal Employer is not liable for any contributions made towards VPF. This means that if an employee contributes 24% (12% mandatory and 12% VPF) towards the Provident Fund, the employer's share remains at 12%. All contributions towards VPF are directed to the Provident Fund Account and not the Pension Account.

I hope this clarifies any questions you may have.

Kind regards,
Rajeev Verma
From India, Delhi
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PF Limit for Employee:

Dear All,

1. In terms of section 6 of EPF & MP Act 1952, the percentage of contribution to the fund is 12% of basic wages + DA.

2. The employer shall pay his contribution of 12% of basic + DA and the employee's share of 12% upfront and credit it to the account of the employee. Then recover the employee's contribution from the employee's salary.

3. Out of the employer's contribution, 8.33% of wages is diverted to the EPS 95 scheme; this is maintained by the respective territorial PF commissioner.

4. The employer has to contribute 1% of wages to EDLI. There is no employee contribution.

5. The employer has to pay 25% of the contribution amount of EDLI towards administration charges of EDLI.

Hope this clarifies the matter.

KS Murthy
From India, Changanacheri
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can any one explane the baisc difference bet PensionFund and Provident Fund??? thnx in advance...
From India, Mumbai
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Dear Mayank,

You are slightly mistaken in thinking that I am referring to VPF in percentage terms and not in terms of the figure. Hence, even if an employee opts for VPF contribution, their total deduction will be 24% and not 75%.

Regarding the Income Tax Act, starting from this year, the savings under 80C are ₹110,000.00 and not ₹100,000.00. Please update yourself.
From India, Delhi
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Dear all, As far as i know the employer’s contribution in epf is 13.61%. Is it right? Regards Prachi
From India, Bhopal
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Dear All,

Follow the below link for more clarity.

[http://www.epfindia.com/](http://www.epfindia.com/)
From India, Delhi
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Dear,

As per your query, if an employee's PF earning is 10,000, then the employee's contribution is 12%. Another question that arises is whether the employer will also contribute the same amount or not. This depends on the organization. If the employer agrees to match the contribution, then it will continue; otherwise, the employer's contribution will be limited to 12% of 6,500.00.

Regarding VPF, according to the Act, the member must contribute at a rate of 10% or 12% of their basic pay, D.A., and retaining allowance, if any. If the member wishes to contribute more voluntarily, they can do so at any desired rate, up to 100% of the basic and D.A. However, the employer is not obligated to match the increased rate.
From India, Bangalore
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Dear All,

Follow the below link for more clarity.

[http://www.epfindia.com/](http://www.epfindia.com/)
From India, Delhi
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If the employer feels that those drawing more than Rs. 6500 right at the time of joining should also be covered by EPF, he can cover them as well. He can also restrict the PF contribution to 12% of Rs. 6500 for those who earn more than that.

Regards,
Madhu.T.K
From India, Kannur
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Dear Rajeev,

I don't know if any percentage is fixed for VPF or not, but I want to tell you that in my organization, there is no percentage fixed for VPF contribution. However, there is a ceiling set at Rs. 9000 per month. It's up to you to decide whether you want to contribute Rs. 1000 per month or Rs. 9000 per month.

I am contributing Rs. 2511 (12% of Basic+DA) as PF and Rs. 7000 (this amount alone is more than 24% of total wages) as VPF.
From India, Delhi
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See my next Post. In the next post I have taken the extract from the Provident fund Link. Hope that will solve the most of the queries.
From India, Delhi
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I am hereby putting some questions related to the Provident Fund. I think most of the queries will be solved by these. These questions are picked up from the Provident Fund Site itself.

FREQUENTLY ASKED QUESTIONS

<image no longer exists>
1) Who will be covered by the Pension Scheme?

Every member of the ceased Family Pension Scheme 1971 and anyone who joins any covered establishment on or after 16-11-95 is compulsory to join this scheme, provided his/her salary/wage is less than Rs. 6500/- per month at the date of appointment.

2) What is a covered establishment?
A covered establishment is an establishment belonging to the class of industries/other establishments, which has been listed in the schedule appended to the Employees' Provident Fund and Miscellaneous Provisions Act 1952 and where 20 or more persons are employed.

3) If an employee was a Family Pension Scheme member, he/she has left on 13-12-93, and he/she is 54 years old. He/She has taken his withdrawal benefit. Can he/she join the new scheme?
Yes, by refunding the withdrawal benefit together with interest. Thereafter, he/she will be entitled to receive a pension from age 58 if he/she completes at least 10 years of contributory service by then.

4) If an employee is a Family Pension Scheme Member and he/she has retired after 58 years of age on 15-01-94. Can he/she join the new scheme?
Yes, anyone who has retired by reaching age 58 between 01-04-93 and 15-11-95 may join the scheme by returning the withdrawal benefit along with interest. He will be paid a pension with immediate effect, from the date of exit provided he has rendered 10 years of contributory service.

5) If an employee is not a Family Pension Scheme member and he/she is 56 years of age, Can he/she join the Family Pension?
Yes, by diverting from his/her Provident Fund balance, the Family Pension Scheme contribution from the date of his/her joining or 01-03-71, whichever is later.

6) Whether the Family Pension Scheme member who has attended the age of 58 years before 01-04-93 and has left employment after 01-04-93 will be admitted to the scheme as a member of the Family Pension Scheme, 1971?
Yes, he will be deemed to have retired after 01-04-93. On repayment of that withdrawal benefit which was paid, Pension will be paid from the same date, provided he has rendered 10 years of contributory service.

7) In case a Family Pension member has attained the age of 58 years between 01-04-93 and 16-11-95, then in that case whether arrears of monthly Member Pension become payable for the period earlier than 16-11-95 i.e., from the date of his/her attaining the age of 58 years which is prior to 16-11-95?
No, he/she will be deemed to have retired from 16-11-95, and the pension paid accordingly.

8) Is the employee the only beneficiary of the Fund?
Benefit will be paid to him/her, and in his/her absence to his/her family.

9) What is meant by Family?
Family means employees' spouse and children below 25 years of age.

10) Suppose an employee does not have a Family and he/she dies before receiving benefits. Does his/her pension get lost?
No, if he/she does not have a family, benefits will be paid to his/her nominee, who will receive the benefit in his/her absence.

11) Suppose a member has not nominated anyone.
The pension/ROC will be paid to the dependent parents.

12) Can a member change his/her nomination?
He/She can change his/her nomination whenever he/she decides within the framework of rules for such nomination. In other words, if he/she has a family, the nomination should be in favor of a member(s) of the family. If he/she has no family, he/she can nominate anyone he/she wishes.

13) How many years of service are required to be eligible to receive member pension?
A minimum of 10 years of eligible service will entitle for member pension.

14) An employee is a member of Employees' Pension Scheme. He/She has left employment at 48 yrs. of age and 8 yrs. of service. When shall he/she receive his/her pension?
He/She can take either the withdrawal benefit or can take a scheme certificate so that the 8 years of service can be added to any future service that he/she may put in, in any other covered establishment. By virtue of being a holder of a scheme certificate, if the member dies before 58 years, the widow/widower and children shall be entitled to a pension.

15) What is past service pension?
This pension is for the period of membership of the Employees' Family Pension Scheme, 1971.

16) When does an employee become eligible to become a member of Employees' Provident Fund Scheme, 1952, and Employees' Deposit Linked Insurance Scheme, 1976?
An employee becomes a member of Employees Provident Fund (Employees' Provident Fund) Scheme, 1952/Employees Deposit Linked Insurance (Employees' Deposit Linked Insurance) Scheme, 1976 immediately on joining an establishment covered under the Employees Provident Funds & Miscellaneous Provision Act, 1952.

17) What is a nomination?
Every member has to give the details of himself & details of the nominee for Employees' Provident Fund & Employees' Deposit Linked Insurance Schemes and details of the family for Employees Pension Scheme, 1995 in form no. 2.

A member if having a family can nominate any one or more persons to receive the Provident Fund on his death. In the case of him having no family, he can nominate any other person.

Family for the purpose of Employee Provident Fund Scheme'52 means wife/husband, children, whether married or unmarried, including adopted children if adoption is recognized and dependent parents of the member.

Employees Deposit Linked Insurance Scheme benefit will be paid to the nominee under Employees Provident Fund Scheme, 1952.

For the purpose of Employees Pension Scheme, 1995, the member has to furnish the details, such as name, relationship & age of all the family members in form no. 2. Family for the purpose of Employees Pension Scheme, 1995 means wife/husband & children. Whenever a member wants to make a change in the nomination already made for Provident Fund or to update the details of the family for Employees Pension Scheme, 1995, he has to send a revised form no. 2. The form no.2 is routed through the employer.

18) What are the periodical returns to be sent by an employer to the Provident Fund Office?

The employer of an un-exempted establishment has to forward the following returns. These returns will include details required under the three schemes namely, Employees Provident Fund Scheme, 1952, Employee Deposit Linked Insurance Scheme,1976 and Employee Pension Scheme, 1995.

a) Form-9(Revised):
The details of employees enrolled as members of Employees' Provident FundS'52, Employees' Deposit Linked Insurance'76 & Employees' Pension Scheme'95 on coverage of the establishment- This is to be submitted immediately after coverage, within 15 days of coverage.

b) Form-12A:
The details of the contributions recovered from the members & paid along with details of employers' contribution & administrative charges- This is to be submitted monthly by the 25th of the following month.

c) Form-5:
The details of the employees enrolled newly to the Provident Fund- To be submitted along with Form-12A every month within 15 days of the following month.

d) Form-10:
The details of the employees leaving service during the month- To be submitted along with Form-12A.

e) Challans:
The triplicate copy of challans in token of having remitted the Provident Fund dues in the bank- to be submitted along with Form-12A every month.

f) Form-2(Revised):
Nomination form- To be submitted along with Form-5/9.

g) Form-3A:
The details of wages & contributions in respect of each member, to be prepared financial year-wise- To be submitted to the Provident Fund office by the 30th of April every year.

h) Form-6A:
Yearly consolidated statement of contributions- To be forwarded yearly along with Form-3A. It should be ensured that all the Form-3A are entered in Form
From India, Delhi
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Is there any compulsion regarding the ceiling of PF contribution towards Provident Fund if someone's basic is 7000 and PF is deducting on 6500? Is it correct, or should we deduct PF on the actual basic EPF part? Deduction towards the Pension Fund is clear, which is fixed at 541. Kindly clarify the Provident Fund part.

Thanks
From United States, Chicago
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If anybody wants to contribute PF more than what is prescribed under the PF Act, then he can do that; there is no compulsion. The main thing is that the mandatory requirement under the specific Act should be met. If you are providing more than the Act mandates, then there is no restriction, but once you start doing that, you can't reverse back in the future.
From India, Delhi
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Hi Everybody If you rae getting Rs10000-/-, Rs.1200 + 367 will go to PF, and Rs. 833 will go to VPF Regards Lijo
From India
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Hi,

The employer's liability is 12% of Basic + DA up to Rs. 6500/-; beyond that, it is up to the employer to decide, and it is not mandatory that the employee is contributing 12% of 10k, so the employer should also contribute.

Regards,
Shaji
From India
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As per my knowledge basic salary should not be less then the minimum wages of that state. jsn
From United States, Chicago
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Thank you, Surbhi, for more information on all various Industrial Labour Acts, you can visit the following link: [All Act Statutory Compliances](https://www.citehr.com/118308-all-act-statutory-compliances.html).
From India, Delhi
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Hey Amith,

I also wanted to know if it was correct. They say that the company gives 780 as the employer's contribution, and 780 will be the employee's contribution. So the maximum deduction should be 1633. Please help me with this if anybody knows about the same.

- Geeta
From India, Mumbai
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Human Resource Management (HRM) Community Journal & KnowledgeBase (Entry: 113835)

India, Thiruvananthapuram
21 July 2008 02.48.10 PM
Views: 19219 Replies: 65 Appreciations: 0

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