What if employer does not deduct PF?
As per the Employees Provident Fund Act, the employer’s share cannot be deducted from the member. Also, it cannot be recovered from the salary of employees. If the employee PF was deducted and not paid, it is incorrect. You can reach out to your officer-in-charge for getting the same rectified.
Is PF mandatory for startups?
With the introduction of SPICe+, registrations for EPFO and ESIC shall be mandatory for all new companies incorporated with effect from February 23, 2020, and no EPFO and ESIC registrations shall be separately issued by the respective agencies.
Is it mandatory to deduct PF on salary on monthly basis?
An interest amount based on the monthly operating balance is awarded and added to the fund at the end of the financial year. EPF deduction is mandatory for employees who draw a salary less than Rs 15,000, but others can opt-out of this scheme through a declaration made in Form 11 of EPFO.
Who is not eligible for PF deduction?
EPF eligibility criteria If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF, although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.
What is non contribution period in PF?
Non Contributory Period (NCP) in PF means the number of days for which the employee is absent to the job in a particular month, and no PF will be calculated for those NCP days.
Is PF and ESI mandatory for companies?
Registration for ESIC and EPF will be mandatory for all new companies to take effect from February 23, 2020, and no separate ESIC and EPF registrations will be issued by the agencies concerned.
Is it mandatory to deduct PF from salary more than 15000?
Those earning basic wages more than 15000 per month, EPF contribution is not mandatory. Also, the employer can choose to limit its contribution towards EPF to 12 per cent of Rs 15,000 (Rs 1,800) under Section 26A of EPF act for those employees earning more than Rs 15,000 per month as basic wages.
Is PF compulsory for all companies?
If you are an employer with an organization that employs 20 people or more, it is mandatory for you to register under the EPF scheme. If your organization employs less than 20 people, you can still opt to register under the scheme.
Can I ask my employer not to deduct PF?
If an employee wants to opt out of PF, he can fill out Form 11 at the time of joining his first job. He will also have to present a letter addressing the employer stating that he wishes to opt out of the Provident Fund Scheme.
Which company is eligible for PF?
Any company with more than 20 employees must register with the Employees’ Provident Fund Organisation of India compulsorily. Companies with less than 20 employees can also register for the Employees’ Provident Fund voluntarily. All employees drawing a salary are eligible for EPF.
What is exempted PF?
The employer and employee of an exempted PF trust both contribute 12 percent of their salaries to the Provident Fund, much as the EPF. However, 8.67 percent of the employer contribution of 12 percent is given to the Employees’ Pension Scheme (EPS), which is handled by the EPFO, rather than the exempted PF trust.
What is PF no in salary slip?
The Employees’ Provident Fund Account Number is an account number that can be used by employees to check the status of their EPF, the balance in the EPF account, etc. The number is mandatory for withdrawals from EPF.
Is every company liable to pay PF contribution to employees?
Not every company is liable to pay PF contribution. If a company has over 10 or 20 employees only then they have to register for Provident Fund. But a company with less then required number of employees wishes to deduct PF then they can apply for it but then they’ll have to PF contribution till the company shuts down.
Does a company have to deduct Provident Fund from employee salary?
If a company falls in the PF criteria then yes the company have to deduct the Provident fund from the employee salary and deposit the same with the department which will be given to the employee after some period as per the rules and regulations on that pertaining year.
What happens if an employee opts out of the PF scheme?
If you opted for PF say 5 years back but now you don’t have any employee whose PF is to be paid then you gotto file a nil return and pay Rs. 200. Now, it is not compulsory for every employee to pay Provident Fund. Employees having basic salary more than 15,000 have an option to opt out of PF at the time of joining the company.
How much will be deducted from employer’s EPF contribution?
Out of employer’s contribution, 8.33\% will be diverted to Employees’ Pension Scheme (EPS). So, for every employee with salary equal to Rs 15,000 or more, the EPS contribution will be maximum Rs 1,250 each month. If the salary is less than Rs 15000 then 8.33\% of the salary will go into EPS. The balance will be retained in the EPF scheme.