Provident fund act

• Provident fund is a social security scheme governed under the Employee's Provident fund Act, 1952 ("Act") • Applies to any organisation with 20 or more employees and the employer has an obligation to maintain a provident fund account for each of its employees • The employer and the employee are mandated to contribute a portion of the employee's monthly salary towards the employee's provident fund account • The contributions are accumulated as savings which the employee can enjoy as her retirement benefit. There is a withdrawal provision even before retirement. • The Employee's Provident Fund Organisation (" EPFO") is the statutory body responsible for monitoring and ensuring compliance under the Act • An employee is eligible to exit from this scheme upon fulfilling the following criteria: a. If the basic salary along with the dearness allowance is more than Rs. 15,000/- per month b. If the employee is a first-time employee and has opted out from the scheme at the time of joining the first employment c. At the time of joining new employment, if the employee never enrolled under scheme before. • As a mandate, an employee is required to file a self-declaration under Form 11 at the time of joining any company • Purpose of filling this form is to: a. Either transfer Provident Fund from a previous account to a new account (at the time of changing job); or b. To exit from the Provident Fund scheme at the time of joining first employment if, the basic salary along with dearness ...

Until FY 2020-21, the interest income earned on contributions to EPF made by the employee was completely TAX-FREE. EPF Contributions above Rs 2.5 lakh, Interest is taxable | Budget 2021 Related Article : For more details, you may kindly go through this article @ In addition to the above amendment, the central govt has decided to implement the below important changes to the EPF act. New EPF Rules 2021 | Latest Amendments Below are the new EPF rules that EPF members need to be aware of; • EPFO Aadhar Verification mandatory w.e.f. 1st June, 2021. (The last date to seed the Aadhaar number with UAN is extended from June 1, 2021, to September 1, 2021, for all EPFO beneficiaries.) • EPFO hikes death insurance under EDLI scheme to Rs 7 lakh. • EPFO allows its subscribers to avail the second COVID-19 advance (partial EPF withdrawal) Let’s now go through these new EPF rules 2021 in detail…. EPFO Aadhar Verification mandatory w.e.f. 1st June, 2021 • The EPFO has instructed all the Employers (Company) that from June 1, if PF account is not linked to Aadhaar or UAN is not Aadhaar verified, then their ECRs (Electronic Challan cum Return) will not be filed. The last date to seed the Aadhaar number with UAN is extended from June 1, 2021, to September 1, 2021, for all EPFO beneficiaries • This means, though employees can see their own PF account contribution, they will not be able to get the employer’s share. • Also, if the accounts of PF account holders are not linked with Aadhaar, then t...

The legal framework for the Fund was established by the Employees’ Provident Fund Act No. 15 of 1958 and the operations of the Fund commenced on June 1 1958. Accordingly, EPF has been strengthened as the largest superannuation fund operating in Sri Lanka over the time span of around 65 years. In accordance with the provisions of the EPF Act No. 15 of 1958, the Department of Labour (DoL), as the administrator of the EPF and the EPF Department of the Central Bank of Sri Lanka (CBSL) as the fund manager of the EPF have jointly launched the re-registration project to re-register members of the Fund according to the National Identity Card (NIC) number. The project commenced in the year 2008 with the aim of establishing and maintaining a member data base primarily centered on the NIC number of EPF members.The re-registration project has been launched in two phases and Phase I has been operational since 2008. Under Phase II of the project, the EPF Department of the CBSL has introduced an innovative face with the acquisition of access rights to the data base of the Department for Registration of Persons (DRP) under a memorandum of understanding with the DRP in 2021. Accordingly, EPF Department has taken many steps to upgrade the project while ensuring smooth operations of the same from its inception till now. Objectives and benefits of the re- registration project This project has initiated with the prime objective of establishing a common member database that can be used by both ...

And while we buy different financial products to meet each of these goals, there is one product that helps achieve all three goals. The majority of us not only know about it but also invest in it because it is a component of our salary. The product is In this blog, we try to simplify the structure of EPF for you by breaking down its components. We also look at how it works, the interest rate you can earn through it, and EPF withdrawal rules. EPF: The Basic Construct The EPF is not one scheme. It actually comprises three different schemes with three different objectives. • The first part of EPF is where your retirement benefits are accumulated. This is basically the wealth generation part of the scheme. • The second part of EPF is the employee pension scheme (EPS). The purpose of EPS is to generate pension for employees after the age of 58 years. • The third and final part of EPF is the Employee Deposit Linked Insurance Scheme or EDLI, which is a life insurance cover. The good thing is you don’t need to register separately for all these benefits. When you register for EPF, you are automatically registered for EPS and EDLI as well. Let’s look at each of these components and their share in your salary. EPF And Your Salary: The Working If you are an employee, you pay a certain part of your salary towards the EPF scheme. This amount is often matched with an equal contribution from your employer. The combined amount is then deposited with the Employee Provident Fund Organisation...

📢 Abstract of Employees' Provident Funds & Misc. Provisions Act, 1952 📚 Dear Connections, I hope this post finds you in good health and high spirits! Today, I would like to shed some light on an important legislation that shapes the landscape of employee welfare in India - the Employees' Provident Funds & Misc. Provisions Act, 1952. The Employees' Provident Funds & Misc. Provisions Act, commonly referred to as the EPF Act, is a social security legislation enacted by the Government of India. Its primary objective is to provide financial security and stability to employees after their retirement. It aims to promote savings and ensure a decent standard of living for employees and their dependents. Key features of the EPF Act: 1️⃣ Mandatory Provident Fund Contribution: Under the EPF Act, both employees and employers are required to contribute a certain percentage of the employee's basic salary and dearness allowance towards the Employees' Provident Fund (EPF). Currently, the contribution rate stands at 12% for both the employee and the employer. This fund serves as a retirement corpus for employees. 2️⃣ Voluntary Provident Fund: The Act also allows employees to contribute more than the mandatory 12% of their basic salary to the EPF voluntarily. This additional contribution, known as the Voluntary Provident Fund (VPF), offers employees an opportunity to boost their retirement savings and enjoy the tax benefits associated with EPF contributions. 3️⃣ Employee Pension Scheme: Alon...

This section needs additional citations for Please help ( May 2021) ( The first Provident Fund Act, passed in 1925 for regulating the provident funds of some private concerns, was limited in scope. The Presently, the following three schemes are in operation under the Act: • Employees' Provident Fund Scheme, 1952 • Employees' Deposit Linked Insurance Scheme, 1976 • Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971) Recent Developments [ ] In March 2022, the EPFO lowered the interest rate on employee provident funds to 8.10% for 2021-22,The EPFO lowered the interest rate of 8.10% for the fiscal year of 2021-22. On 30 August 2022, EPFO proposed to remove the restrictions on the wage ceiling and headcount to allow all formal workers and Structure [ ] This section does not Please help ( May 2021) ( The EPFO has the role of being the enforcement agency to oversee the implementation of the EPF&MP Act and as a service provider for the covered beneficiaries throughout the country. The Act is administered by the Central Board of Trustees (informally, the CBT), which consists of a Chairman, a Vice-Chairman, 5 Central Government representatives, 15 State Government representatives, 10 Employees' representatives, 10 Employers' representatives with Central PF Commissioner and the Member Secretary to the Board. The CBT's Executive Committee is chosen from CBT members to assist the Central Board in the discharge of its functions related to administrativ...