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PF is widely accepted as tax-saving investments. PF Investment is eligible for deduction under section 80C and reduces the taxability of employee. An employee can invest up to 1.5 lakh each year in PF with tax-free proceeds at retirement.
Once an entity crosses the specified number of employees, PF Registration becomes mandatory. Once registered, PF registration cannot be revoked or cancelled even if the number of employees falls below 20.
PF is an option which serves as an important tool for retirement planning for employees. Accumulated PF proceeds can be used under the MIS scheme for getting a fixed amount per month.
Employees prefer to work under the employer who has registration under PF. Provident fund registration increases the credibility of the concerned entity. PF registration gives a psychological advantage to an employer who desires to hire and retain talents.
There is an insurance scheme linked the EPF contribution. The EPFO has declared the Employees Deposit Linked Insurance (EDLI) Scheme. Under this scheme, if the employee dies during the period of service, then the nominee of the employee will receive a lump-sum insurance amount.
Any business that wishes to apply for PF needs to submit the following mandatory documents:
In some entities the underlying may also be needed:
You just need to collect the mandatory documents and send a copy of each document to us. The rest will be handled by the efficient team at Vakilsearch. From filing the form to verification processes and legal formalities, we handle it all!
The Employee Provident Fund (EPF) or provident fund (PF) as it is normally referred to a retirement benefit scheme that is available to salaried employees. Under this scheme, a specific amount (currently 12%) is deducted from the employee’s salary and contributed towards the fund.
Every employee is eligible for EPF right from the beginning of his employment. The responsibility of EPF contribution and deduction is of the employer’s.
Yes. PF has a direct impact on the pension of an employee. The amount contributed by the employer towards EPF, 8.33% of it goes to the EPS, i.e., Employee Pension Scheme.
The employer and employee contribute 12% of the employee’s basic salary towards the EPF scheme. The 12% contribution made by the employer is split in the mentioned ways:
Yes, the member is required to take a printout of the claim submitted online and give a copy to the employer after signing it.