Employee's Provident Fund (EPFO)
These registrations are being managed by consultancy firms on a larger basis. One of the best-known firms in West Bengal is Chakraborty Consultancy owned by Mr. Arnab Chakraborty. The consultancy is serving various industries by providing the facility of Online EPF Registration. Now let’s discuss the facts related to the EPF.
HIGHLIGHTS OF PROVIDENT FUND / PF REGISTRATION
Employee's Provident Fund organization (EPFO)
EPFO or PF is an arrangement made by the government and managed by Employee’s Provident Fund Organization (EPFO), which is covered under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The EPF organization is controlled by Ministry of Labour and Employment, Government of India. The Act was framed to provide the benefits to salaried class employees. Under this act, the employees are entitled to receive a pension, insurance or special benefits at specific occasions by contributing a nominal amount towards this fund. The contribution is being deposited from applicable for both employee and employer.
Online EPF Registration
Filling up of form
Submission of Documents
Application Submission to the EPFO and it’s done.
Benefits of PF
Earlier this registration was being done manually by visiting the organization. But now it can be easily done online. An important investment plan for future needs has been made mandatory by the government for the employees drawing a basic salary less than Rs. 15000/-. The fund accumulated would be tax-free and if withdrawal is being made after 5 years of registration then the maturity amount with interest will also be treated as the tax-free income. The contribution also helps employees by facilitating to withdrawal partial amount for expenses like house construction, daughter’s wedding, in the case of critical illness, higher education etc. Thus, it is very important to contribute towards this fund for both employer and employee.
PF Contribution
12% of Basic Salary of Employee deposited directly towards EPF
12% of Employer contribution is divided as –
8.33% of contribution towards Employees’ Pension Scheme
3.67% of contribution towards Employees’ Provident Fund
1.1% of contribution towards EPF Administration Charges ( After 01/04/2017 0.65% )
0.5% of contribution towards Employees’ Deposit Linked Insurance ( minimum RS. 500/-)
0.01% of contribution towards EDLI Administration Charges( After01/04/2017 RS. 0/-)
Last Date of EPF Payment
Deposition of EPF contributions due date is 15th of every month.
Given below are the benefits of PF registration
- Risk Coverage:Â The most fundamental benefit of the Provident Fund is to cover the risks employees and their dependents that may arise due to retirement, an illness or their demise.
- Â Emergency Needs:Â Â There are certain unanticipated occasions like marriage or other family occasions, any mishappening or illness that require urgent finance. The PF amount can be of great help.
- Long-term Goals:Â There are many long-term goals such as Marriage or higher education that require the urgent availability of funds. The accumulated PF amount often comes handy during such occasions.
- Uniform Account:Â Â One of the most important aspects of the Provident Fund account that it’s steady and transferable. It can be carried forward to any other place of employment.
- Covers Pension: Apart from the employee’s 12% contribution towards EPF, an equal amount is contributed by the employer, which includes 8.33% towards Employee Pension Scheme (EPS).
- Employee Deposit Linked Insurance Scheme:Â Â This scheme is for all the PF account holders. According to it, 0.5% of the salary is deducted from the life insurance premium.
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