Must Apply PF Consultant in Ahmedabad

Fund for Employee Providents (EPF)

Top ESI PF Consultant in Ahmedabad by Connect 2 Payroll Companies in India. One program that offers retirement benefits is the Employee Provident Fund [EPF]. Employees are required to make a certain contribution to the plan, and employers are required to make an equivalent amount.

Procedure and Threshold:

Employer contributions must be made in accordance with the current level of Rs 15,000 per month, after which the employer is exempt from making contributions.

When an employee works for a contractor, the contractor is responsible for collecting the contribution and any administrative fees that are due to the principal employer.

By the 15th of each month, an employer must deposit their mandatory contribution.

The Employees Provident Scheme will get 8.33% of the employer's contribution.

NON-APPLICABILITY:

Some establishments are exempt from the EPF Act:

To any business with less than fifty employees that is registered under a cooperative society or a state cooperative society.

To any other organization that is owned or controlled by the federal, state, or local governments and whose workers are eligible for comparable benefits. Top ESI PF Consultant in Ahmedabad by Connect 2 Payroll Companies in India.

Taking money out of the EPF account:

The EPF Act states that one must leave from duty after turning 55 in order to be eligible for a final EPF payment. Anyone over 54 may take out up to 90% of the total sum with interest in order to partially withdraw the money for those who are getting close to retirement. If an employee leaves their position before to retirement, they are eligible to take 75% of their EPF corpus after one month of unemployment and the remaining 25% after more than sixty days of unemployment. Employees can utilize the Universal Account Number (UAN) that EPFO has assigned them to make withdrawals. All workers are now required to have a UAN, which would facilitate EPF account management and potentially make PF transfers simpler.

Penalty for Employee Provident Fund:

The following damages must be paid by the employer in the event that he fails to transmit the accumulated amount:

5% of arrears per annum if the default term is shorter than two months.

10% of arrears per annum if the default term is between two and four months.

15% of arrears per annum if the default term is between four and six months.

25% of the arrears per year if the default term exceeds six months.

Benefits of the Employee Provident Fund:

Employer and employee contributions to social security are equal, and covered employees benefit from a non-attachable and non-withdraw able financial nest egg.

Normally, this amount is due upon retirement or death.

Other advantages under the EPF statute include the Employee's Pension Scheme and the Employee's Deposit Linked Insurance Scheme.

If a person has worked continuously for at least five years, their EPF withdrawal is tax-free.

To deter early withdrawals and encourage long-term savings, the government implemented Tax Deducted at Source (TDS) on PF withdrawals.

One can access their EPF even when they are employed thanks to the EPFO. These withdrawals are considered advancements.

Such advances are only permitted in certain circumstances, such as when purchasing a property, paying back a home loan, meeting medical expenses, obtaining schooling, getting married, or having children.