Employee Provident Fund
A provident fund is a form of social safety in which employees must contribute a portion of their salaries and employers must contribute on behalf of their workers. The money in the fund is then paid out to retirees, or in some cases to the disabled who cannot work.
The amount contributed to the fund is based on a fixed rate. Employees earn interest on their EPF balances. Both, the interest earned and the total amount withdrawn at maturity are tax-free, making this one of the most popular forms of long-term retirement savings among the working population in India. Besides retirement, funds accumulated in an employee’s EPF account can also be used at time of resignation or death. It also offers financial security in times of emergency and if an employee is rendered unfit for unemployment. The EPFO, therefore, services an unusually large number of subscribers.
What are the features of Provident Fund Registration
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The aim of the EPF scheme is to promote retirement savings for employees across India.
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Employees with monthly salaries less than or equal to INR 15000 have to contribute mandatory towards EPF.
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Employee & Employer both have to contribute 12% of salary in PF, employee contribution of 12% goes in PF and employer contribution divides as follows- 3.67% towards PF, 8.33% towards Employee Pension Scheme, 1.1 towards EPF Admin charges, .05% towards Employee Deposit Linked Insurance(EDLI) and .01% towards EDLI Admin Charge.
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EPF give employee financial security in many ways like Retirement Saving, Long Term Saving, Pension, Insurance and also premature withdrawal in case of emergencies.
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12 Digit UAN number is given to every PF Employee in India now.
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Provident Fund return needs to be filed monthly.