What is the Full Form of PF?

The Full Form of PF is Provident Fund. Provident Fund is referred to as PF. Provident Fund (PF) is also known as Employee Provident Fund (EPF). The Provident Fund or EPF programme would provide financial benefits to all retired salaried individuals. The PF system is monitored by the Employee Provident Fund Organisation (EPFO) of India. Every company or organisation with more than 20 workers must register with the EPFO. In terms of getting a lump sum payment upon retirement, it is believed that this plan offers significant benefits to all salaried employees. As part of the PF procedure, a predetermined amount is deducted from an employee’s monthly paychecks and paid into their EPF account. Employees receive the money saved up in their Employee Provident Fund accounts after retiring.

Objectives

Given below are the objectives of PF:

• A separate EPF account should be maintained for each employee.
• It must be simple to acquire compliance.
• Ensure that organisations regularly follow the EPFO’s guidelines.
• to increase the functionality and durability of internet services.
• Online access to all member accounts should be simple.
• Instead of 20 days, it will just take three days to resolve a claim.
• The promotion of voluntary compliance is encouraged.

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Eligibility Requirements

The prerequisites for EPF eligibility are listed below:

• Employees must register as active members in order to get benefits under the plan.
• Employees are instantly eligible for PF, insurance, and pension benefits as soon as they begin working for the company.
• Any company with at least 20 workers is required to provide EPF benefits to its staff.
• This proposal does not satisfy the needs of the people of Jammu and Kashmir.

Contribution of the Employee

Employee contributions are often established at a rate of 12 per cent. However, the following organisations impose a flat fee of 10%.

• Enterprises or organisations with no more than 19 employees.
• The BIFR has designated some companies as being in sick industries.
• Organisations lose a substantial chunk of money annually relative to their net worth.
• Brick, jute, beedi, guar gum, coir, and industries.
• Organisations that send less than Rs. 6,500 in payments each month

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Contribution from the Employer

The employer’s minimum contribution is set at 12% of each employee’s Rs. 15,000 annual income. (Although they are free to make further contributions). Each month, this comes to Rs. 1,800. This means that both the employer and the employee must contribute Rs. 1,800 to the plan each month. Initially, this sum was set at 12 per cent of Rs. 6,500, resulting in a combined contribution from the employer and the employee of Rs. 780. The EPFO receives contributions from both sides. Thanks to this long-term investment instrument, contributors can spend their lives as they like after retirement. After retiring or leaving your company, you are permitted to withdraw your whole PF balance from your account.

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