Employee Provident Fund ,EPF and its rules.

The Employee Provident Fund, popularly referred to as PF is the retirement saving & social security scheme available to all of the salaried personnels i.e., workers, is backed Indian Government on which fixed interest is paid.

The employee provident fund is Governed by  the Employees Provident Fund Organization (EPFO), an organization Which comes under the  Ministry of Labour and Employment Govt. of india. It is Established to administer the regular  contribution Employers and employees in the Provident Fund , PF scheme.

 The Employee Provident Fund Rules:

1. Today, many agencies offer the PF (provident fund) facility. The Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are the two ways of retirement saving schemes offered below the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, supposed for the salaried employees.
2. For every employee, it is mandatory to make a contribution in the direction of EPF and EPS if he's drawing a primary pay of up to Rs 6500. If any worker is drawing a basic salary  over 6501 Rupees monthly, then he can ask for PF deductions from his salary.
3. Both the personnel and employers make contributions of 12% each . 12% from the basic and dearness allowance from the employee to the provident fund (PF) account and same amount from the employer’s side. Thus, the total contribution to the PF is 24% monthly.
4. In the EPF account, whole 12% is contributed From the employee’s side , at the same time as 3.67% is contributed from the employer” side . The employer’s remaining contribution of 8.33% is diverted to the Employee’s Pension Scheme. It is vital to word that if the worker salary exceeds Rs. 6500, the employer’s contribution closer to EPS is restricted to 8.33% of Rs 6500 (Rs. 541) in that month.
5. Currently, Employee provident fund interest rate is 8.8% annually (w.e.f/ Feb 2016). The interest rate is decided by central Government with the considerations of Central Board of Trustees of the EPFO.
6. The EPF also offers the nomination facility. Any EPF holder can nominate his mother, father, wife/Husband after the demise of Epf holder However, an employee can't nominate his siblings for EPF.
7. The Employee or worker’s  contribution to the EPF offers Tax benefit under 80 c of income tax act.

8. The following are the EPF withdrawals Rules:
 a. A worker/employee can't withdraw a full EPF amount until he arrives to the age of retirement. In employee stops working  voluntarily or involuntarily because of any reason other than retirement maximum withdrawal cannot exceed the aggregate contribution of the employee and the interest accrued thereon. An employee can withdraw an employer’s portion most effective after reaching the retirement age.
b.An employee can withdraw only his contribution and the interest accrued on his contribution  when he resigns from any company. The part of the employer’s contribution can be withdrawn until the employee attains the retirement age. So, the employee remains to be the member of the EPF scheme till he attains the age of retirement.
c.The retirement age has been extended from 55 years to 58 years.
d.An employee can withdraw up to 90% of the EPF amount on accomplishing the age of 57  years.
e.No tax will be charged on PF withdrawals at the time of retirement.



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