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  • Category: Government

    Who is eligible to get PF (Employees' Provident Fund)?


    Have a query about provident fund? Wondering about who is eligible to get this fund? Find responses to your queries on this Ask Expert page.

    I work in a company who doesn't offer PF facility to all the employees. If the CTC of an employee is above certain salary slab then he/ she won't get PF facility. As per the company's rule such employees are eligible for "Gratuity".
    Kindly explain this PF concept in detail.
  • #140903

    Provident Fund under EPF Act is a social security measure and the basic act on this is formed in the year 1952. According to the provisions of the Act and rules thereof
    1.Every establishment having 20 employees or more is coming under the purview of the Act.
    2.It is mandatory to cover all its employees who are all drawing a monthly salary upto Rs.15000. Those who are(once the establishment registered under the Act)drawing more than Rs15000 per month also can contribute PF to the extent of Rs.15000.
    3.Employee and Employer share for this contribution is 12 percent individually.
    4.Once the employees got covered under the Act,as per the recent procedure,provided with an Universal Account Number (UAN) with which a member can transfer his PF accumulations (both employee and employer) to his present account when he changed his employment without any problem and that too simply he can do so to any place of our country.
    5.The contribution of 12 percent of employer side is divided into two portions that is EPF and EPS. In which the EPS (8.33 percent)provided for Pension fund and balance will go to EPF.
    6.EPF authorities provided simple procedure to cover the establishments through online.

    further readings can be had from the Act which can be downloaded from
    http://epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/EPFAct1952.pdf

  • #140905
    An employee who is employed in an organisation consisting of more than 20 employees is eligible to register under Provident Fund (EPF). Minimum salary of the employee is Rs.15000 to add the contribution of the employer which will put together earn interest @12% p.a. Since PF is being implemented in the establishments / organisations in terms of EPF Act, employee would get Social Security for his life. The contribution would be 10% from the employer side and from the employee side it is 10% minimum. Even the employee desires to contribute more than 10%, it would not be mandatory for the employer to contribute more than 10%.

  • #140913
    As your company doesn't offer PF, it must be registered under LLP. The reason being LLP is not liable for the PF facility. And if the company is private ltd and still not allowing the PF feature. Then employees can complain and get the management to act on this part. For any private limited company that has more than 20 employees, it is necessary to offer the healthcare and PF. Company first needed to be registered for the EPF and then assign the employee the UAN number. Even if the person leaves the company, they should continue to get the money in the PF from the new company. So this number is the common between all and doesn't change even if the company is changed by the employee. PF has no specific eligibility as per the act. All the employees are covered into it. But due to profit and loss side of the companies they add or remove employees as per their comfort zone. So that could be one case that many in your company are not under it.

  • #141095
    1. EPF is now mandatory for all those whose salary is less than Rs.15, 000Previously the limit was Rs.6, 500. However, this now rises to Rs.15, 000. Therefore, whoever falls below Rs.15, 000 of salary per month will have to contribute compulsorily to EPF Scheme.

    2. The minimum monthly pension will be Rs.1, 000 per month. Under the new rules, widow of a member will get a minimum monthly pension of Rs.1, 000. For children, it fixed at Rs.250 and the orphans it is Rs.750 per month. In addition, to arrive at pension, salary will be average of 60 months last drawn salary instead of earlier rule of last 12 months average salary.

  • #141181
    The reply of Mr. Ramachanran Pattabiraman as well as other replies has clearly pointed out all aspects relating to Employees Provident Fund (EPF). I would only like to add that if there is no provision of EPF in your office, you must open a GPF Account on your own and where you can deposit an amount of Rs. 1,50,000/- every year (maximum). This is perfectly safe and is one of the most popular tax-saving instruments available in India.

    So, don't wait for your office initiating EPF. Immediately open a GPF Accountin a Nationalised Bank or Post Office and invest safely for future.

    Caution: Explosive. Handle with care.

  • #142854
    Hi Pramod,
    First of all I would like to thank you for asking such a good question, as the replied answer helped me a lot to know about PF system. The information given in the answers are really useful so I also want to thank all of them.
    If your office do not implies PF then you can invest maximum amount of Rs. 1.5 lakh per annum in PPF scheme also. It can be done in any nationalized bank.


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