PF Status
Check your Provident Fund (PF) status and other related information...
Ping
 
Ping
About us

This is an informative website where you can check your PF (provident fund) status and other important information online...




main_menu


Bookmark and Share

PF Scheme




Employees' Provident Fund Scheme 1952

Employee Definition:

Under the section 2, employee is deemed as an individual who is working in a company or manually provides services to the establishment. Apart from above, the person obtains regular wages in the form of salary and could be also be employed by the contractor on behalf of an organization.

Membership:

The employees who are permanent or on a casual payroll should fill in the appropriate form so that they are eligible for the provident fund allowance. Workers who are excluded from the scheme of things are also need to use the registration process to access provident fund in the due course of time.

Basic Wages:

The term basic wages are defined as the salary which is paid to employees for the services rendered to an organization. It includes all the direct benefits accrued over the month and would go a long way in providing the best results to the employees.

  • Food vouchers are not included
  • The dearness allowance along with the one for the house is also not included within the basic wages category. Similarly, performance linked bonus and other incentives are not
  • Gifts made to the employer are not included in the basic wages.

Excluded Employee:

The employees who are excluded from the scheme are the ones who have already taken out the money from the provident fund account after they have retired from the active services at the age of 55 years. Moreover, people who are earning more than a certain amount per month and not opted for the provident fund scheme.

Explanation:

The total pay comprises of the basic components which include the basic pay and the indomitable dearness allowance which are added to the overall sum.

Employee Provident Fund Scheme:

The provident fund scheme is essential to meet following expenses.

(i)   Retirement benefits                     (ii) Medical expenses                     (iii) Housing expenditure
(IV) Family expenses                        (v) Educational expenses
(VI) Insurance Polices finances

How the Employees' Provident Fund Scheme works:

In the year 1997, a proposed amendment to the provident fund scheme ensured that the company and the employees need to deduct 12% of their salary towards provident fund expenses. It would help to accumulate sizeable amount at the end of the retirement period.

  • The 10% PF scheme is available to the employers whose combined strength of the work force is less than 20.
  • If a company is declared bankrupt under the law of the constitution and in under the aegis of the BIFR as a sick enterprise and cannot meet the expenses of the employees.
  • The company which is under perennial losses and the total liabilities significantly exceeds the assets of the organization resulting in the balance of the payment crisis.

Jute along with the breed as well as the coir industries are exempted from the provident fund schemes, however they might register to opt for the 10% reduction. The law passed in 1997 governs the dispensation of the provident fund.

Employees' Provident Fund Interest Rate:

The interest rates vary according to the financial year and are charted out in consultation with the employees board which works in tandem with the government to provide the best benefits. In the year 1999 the interest rate fell to about 11% and then in subsequent years it was 10.25% which provide healthy sum to the government servants.

Benefits:

A) The person who is registered with the provident fund can take out the whole amount after the retirement at the age of 55years or the services of the employees are terminated due to unforeseen circumstances.

  • The registered member should not have achieved the retirement age of 55 years.
  • Physical in capabilities forcing the people to retire prematurely than the regular service age. It can create huge problems and the person could withdraw funds.
  • Leaving the current job and settling in a foreign country permanently or switching over to some other company.
  • When the workers are laid out en masse from the job due to recession or some other causes.

B) If the above mentioned problem arises the employee must apply for the same by submitting relevant documents. A minimum of two months is taken by the government to process the papers so that the fund could be issued on time.

  • Sometimes the employees need to be transferred to another business entity to handle different assignment not falling under the purview of the act.
  • The provident fund member loses the job and is compensated as per the law passed in 1947 , then it is possible to dispense with the provident fund

Withdrawal Before Retirement:

The member is entitled to the withdrawal of more than 90% of the provident fund amount once the person achieves the age of 54 years. Suitable application with form 19 should be filed by the users as a claim, prior to the withdrawal because it would help to get the best results.

Accumulations of a Deceased Member:

Provident fund is given to the nominees in case the member dies before the attainment of the retirement age.  The form 20 provides the necessary claims to obtain compensation.

Transfer of Provident Fund Account:

The biggest issue is the transfer of provident fund from one entity to other; however the problem is easily solved by the usage of the form 13 which helps in conversion of unexampled funds.

Nomination:

The provident fund registered member should take adequate steps in naming the nominee in case of death or eventuality. The amount would then be transferred to the concerned individual. The form 2 is used to provide the wholesome data which would go a long way in creating repository of information for the company.

Annual Statement of Account:

At the end of each financial period the annual statement of the provident fund are sent to the concerned person in which important information is given pertaining to the opening balance and the total mount added to the accumulated sum along with the closing balance. The withdrawal is also mentioned in the document to provide an accurate view of the statement so that any discrepancy could be addressed at a later date.  Member must be vigilant enough to find any problem in the accuracy and in case of problems must immediately report to the employee so that corrective actions could be taken within a stipulated time frame without any hiccups in the future. It will help the employees to track their provident funds in a batter manner and avoid any problems during the retirement age.





 
Home
Articles | Disclaimer | Contact Us | Site Map