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When is PF deduction done for a new employee in a private company?


Date: 07 Jan 2016   Posted By: VANIMELAGIRI     Group: Finance and Investments    Category: Banking   

I am working in a pvt company as accountant. I want to know that when any employee joins the organisation, when we deduct PF for the new employee - in the first salary or if there is any other rule for the PF deduction?

Wondering when exactly a provident fund deduction is made in the salary of a new employee? Get quick expert answers to this financial query right here.


Author: Partha Kansabanik    07 Jan 2016      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

The Employees Provident Fund (EPF) contribution should be deducted from the salary of the first complete month of joining in case of a permanent employee.

Author: K Mohan    07 Jan 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

Vanimelagiri warm welcome to this site as a new member and glad to respond to your first post. If you are already a PF contributor in the previous company and have not closed the account, the present company shall deduct the PF amount from the first salary itself. One more thing please verify your account with the previous company whether they have deposited the amount with the PF office of your share and there share. The PF office also gives interest of 8 percent or more on the deposits you have. Further details can be had from the EPF website.

Author: Ramachandran Pattabiraman    07 Jan 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

As per the recent amendment, the employee is coming under the purview of the coverage of PF from the day of his joining and the total salary of him or her should be below Rs.15000 per month. (If there is any bifurcation in the salary according to the policy of the company/establishment the total pf salary is to be calculated as total less HRA). If the salary of an employee is more than 15001 then he or she is need not be a member of PF and PF deduction shall not be made from his or her salary but if the employee wishes to become a PF memeber, then a maximum of Rs.1800 (12 percent of 15000) would be the deduction. However the answer to the question is since the very first day the pf deduction is to be made from one's salary.
REfer:http://www.epfindia.com/site_en/For_Employees.php?id=sm2_index


Author: Bhushan    14 Jan 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

There is a rule in any organisation whether it is private or Public Organisation Provident fund is deducted from the Joining day of the salary Now PF becomes online you can know whether the Provident Fund is deposited in your Account or not Prior to that you have to fill PF application form you will get One Unique PF number and after that you will get UAN no. with this no. you can search whether the Pf is deposited or not (It will give you the Most Updated result).




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