PF Benefits for Employees

PF Benefits for Employees Nov 2018 – All about |Employees Provident Fund| |PF Benefits| |Benefits to Employees| |Advantage| |Disadvantage| |EPF Withdrawal Rules| |EPF Rules & Regulations|.

EPFO has said that the money of the provident fund is for social security and people should not use it as a bank account. The organization said that we want to tell all the members that if they are very important, then take complete clearance.

The account is that which is meant for the job profession. In this, your employer deposits a certain amount from your Basic Salary (currently 12% in current time) to PF account. This amount is determined by the government and the employer deposits it by adding 12% on its behalf. 8.33 percent of the employer’s percentage goes to the Employee Pension Scheme (EPS). In this, you get 8.65% interest on your investment. You can withdraw EPF money after leaving your current job or add it to your new job. For this, now every account holder gets the UAN number.

The retirement fund body introduced a composite form (Form 11) which will help in the process of automatic transfer of provident fund when changing jobs. Typically, both the employer and employee contribute 12 per cent of basic salary towards EPF. An employee’s 12 per cent contribution goes toward EPF kitty, while 8.33 per cent out of the total 12 per cent of the employer’s contribution is invested in EPS or pension scheme. The balance 3.67 per cent is invested in EPF.

Benefits to Increase Monthly Contribution in PF

According to the Employee Provident Fund Act, any member of the EPFO can increase his monthly contribution in PF. Every month PF’s basic salary and DA’s 12 percent employee’s contribution goes. The company’s contribution is only 12 per cent. Any employee can increase their monthly contribution. It can also be 100 percent of basic salary.

Investment period: 28 years

Monthly Contribution: 12%

Current Returns: 8.65%

Annual increase in salaries: 10%

Total PF Fund: 1.24 crore

Note– This calculation is done at 15,000 rupees basic salary.

How to Double your PF Amount

If Shyam Prasad raises his Monthly Contribution Basic salary from PSE to 12 per cent from 12 per cent, his PF fund will double. Apart from this, they will also get the benefit of compounding so that their fund will grow faster. If Shyam Prasad pays his monthly contributions to PF from 12 per cent to 30 per cent, then his PF fund at retirement will be 28 million and 28 million. In this way, they can almost double their PF funds.

Investment period: 28 years

Monthly Contribution: 30%

Current Returns: 8.65%

Annual increase in salaries: 10%

Total PF Fund: 2.28 Cr.

Note– This calculation is done at 15,000 rupees basic salary.

DOCUMENTS REQUIRED FOR ONLINE REGISTRATION

  1. Scan copy of Pan Card of Factory/Establishment/shop and Employer.
  2. Details of Employees and their monthly salaries
  3. List of Partners, Directors and their Details.
  4. Scan copy of Bank Account Details of Factory/Establishment/shop
  5. Scan copy of Factory or Establishment License or Certificate of Registration of factory or Establishment.
  6. Digital Signature of Proprietor/Director/Partner
  7. Scan Copy of cheque of Company’s Bank details.

EPFO subscribers can avail the facility of withdrawals for the purpose of, purchase/construction of house, repayment of house, illness, higher education, marriage etc.

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