Hi,
We want to introduce PF in our organization. What are the most critical factors that we need to ensure while implementing PF and deciding about the percentage of PF deduction. Also what the minimum and maximum deduction of basic salary that an organization need to adhere.
Thanks,
| APPLICABILITY | FACTORY OR ESTABLISHMENT WITH 20 OR MORE EMPLOYEES |
|---|---|
| EMPLOYEE PF CONTRIBUTION | 12% OF WAGES |
| EMPLOYER PENSION CONTRIBUTION | 8.33% OF WAGES; MAX UPTO 1250 |
| EMPLOYER PF CONTRIBUTION | 12% OF WAGES MINUS EMPLOYER PENSION CONTRIBUTION |
| EMPLOYER EDLI CONTRIBUTION | 0.5% OF WAGES; MAX RS 75 |
| EMPLOYER ADMIN CHARGES | 0.5% OF WAGES |
| SALARY LIMIT | EMPLOYER CAN USE THE WAGE CEILING OF 15000 FOR BOTH |
| EMPLOYER CAN USE THE WAGE CEILING OF 15000 FOR EMPLOYER CONTRIBUTION & EMPLOYEE CONTRIBUTION CAN BE FULL | |
| BOTH THE CONTRIBUTIONS CAN BE @ FULL WAGES | |
| WAGES | BASIC, DA, OTHER FIXED ALLOWANCES EXCLUDING - ‘OVERTIME ALLOWANCE, BONUS, HRA, COMMISSION, ALLOWANCES WHICH ARE VARIABLE IN NATURE, WHICH ARE LINKED TO OUTPUT, NOT PAID ACROSS THE BOARD’ |
| EMPLOYEE PF NUMBER | MH/BAN/0057885/000/0000691 MH REPRESENTS THE STATE, I.E., MAHARASHTRA BAN REPRESENTS THE REGIONAL OFFICE, I.E., BANDRA THE NEXT 7 NUMBERS, I.E., 0057885 REPRESENTS THE ESTABLISHMENT ID THE NEXT 3 NUMBERS ARE ESTABLISHMENT EXTENSION ID. IT CAN BE 000 IF NO EXTENSION IS PROVIDED. THE LAST 7 NUMBERS, I.E., 0000691 REPRESENTS THE MEMBER (EMPLOYEE) ID. |
| UAN NUMBER | UAN STANDS FOR UNIVERSAL ACCOUNT NUMBER TO BE ALLOTTED BY EPFO. THE UAN WILL ACT AS AN UMBRELLA FOR THE MULTIPLE MEMBER IDS ALLOTTED TO AN INDIVIDUAL BY DIFFERENT ESTABLISHMENTS. THE IDEA IS TO LINK MULTIPLE MEMBER IDENTIFICATION NUMBERS (MEMBER ID OF DIFFERENT EMPLOYERS) ALLOTTED TO A SINGLE MEMBER UNDER SINGLE UNIVERSAL ACCOUNT NUMBER |
| KYC REQUIREMENT | AADHAR, PAN, BANK DETAILS MANDATORY |
| FORMS | FORM 5A - RETURN OF OWNERSHIP FORM 2 - NOMINATION FORM FOR EPF & EPS FORM 13 - PF TRANSFER FORM 19 & 10 D - PF & PENSION WITHDRAWAL FORM 31 - PF ADVANCE LINK: HTTPS://UNIFIEDPORTAL-MEM.EPFINDIA.GOV.IN/MEMBERINTERFACE/ |
| ECR & REMITTANCE | BEFORE 15TH OF NEXT MONTH |
| BENEFITS | SAVINGS FOR RETIREMENT INTEREST BENEFIT LOAN/ADVANCE FOR MARRIAGE, EDUCATION, ILLNESS, HOUSE PURCHASE DEATH BENEFIT OF LUMPSUM AMOUNT (UPTO RS. 6 LAKHS) |