Employee Provident
Fund – EPF comes under the act of Employees Provident Funds and Miscellaneous
Provisions act, 1952. All work of EPF managed by government organization EPFO (Employee’s
Provident Fund Organization).
It is
mandatory to contribute certain part of the salary of Employee to EPF by both
Employee and Employer. EPF is a kind of saving of Employee where employee can withdrawal
the amount from EPF department later and also gets interest rate on their
contributing amount by EPFO.
We have to
check what is that certain part, it can be Rs. 1800 or 12 % of employee Gross
Salary.
1800 Fixed
or 12 % of Salary?
Applicability
1.
EPF
is mandatory to those organization who has employees more than or equal to 20.
2.
Once
EPF applicable to an organization then it will be continuing if its employee’s number
is less than 20.
3.
If
Employee Basic Salary is <=Rs.15,000 and he is covered in E.P.F
4.
When
employee wages increase and his new Basic Salary become more than Rs. 15,000
then he will continue a member of EPF.
5.
Those Employee once fall in category of EPF,
they will be a member of EPF contribution till their last day with the same organization.
6.
They
can contribute till ceiling of Rs.15,000 even when his salary is increased as
Rs. 16,000 per month that means 12% on Rs. 15,000 which is equal to Rs. 1800.
7.
Act
applicable to all who employed like direct Employers, through contractor,
employed in Factory, who gets wages directly or indirectly from establishment.
EXAMPLES
:
8.
It
is a central Act and applicable to whole India except Jammu & Kashmir.
9.
Employee
contribute 12% or Rs. 1800 towards EPF Scheme
10. Employer Contribution distribute into
EPF( Employee
Provident Fund), EPS ( Employee Pension Scheme),
EDLI (Employee Deposit Linked Insurance) Admin charges of
both EPF and EDLI,
Provident Fund), EPS ( Employee Pension Scheme),
EDLI (Employee Deposit Linked Insurance) Admin charges of
both EPF and EDLI,
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