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Provident fund rate

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(Querist)
10 May 2012 sir
please let me know the Provident fund contribution for employ and employer and how to calculate
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RAMESH KUMAR VERMA

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RAMESH KUMAR VERMA (Expert)
11 May 2012 Rates of Contribution:

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.


Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.


Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.


Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme
From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ).

The Central Government also would contribute at the rate of 1.1 / 6% of total wages.


c) Employees' Deposit Linked Insurance Scheme:


No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).


For Employees



For New Entrants:

Enrolment: An employee is eligible for membership from the day he joins the covered establishment.

If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.

Declare previous employment details, if any, in Form No. 11 to the employer.

On becoming a member of the Schemes file details in Form No. 2 ( family particulars/ nominations) through the employer.

Rate of contribution payable by a member shall be @ 12% of his emoluments.

A member can contribute statutarily over and above the prescribed rate.

For Existing Members:

Enrolment:

Any change in the family status, such as, -

marriage of the member.

additions / deletion in the family.

Legal adoption of the children.

Change of nominee, is to be filed in Form No. 2 through the employer.

In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.

A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.
Profile Image

RAMESH KUMAR VERMA

Profile Image

RAMESH KUMAR VERMA (Expert)
11 May 2012 Rates of Contribution:

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.


Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.


Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.


Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme
From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ).

The Central Government also would contribute at the rate of 1.1 / 6% of total wages.


c) Employees' Deposit Linked Insurance Scheme:


No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).


For Employees



For New Entrants:

Enrolment: An employee is eligible for membership from the day he joins the covered establishment.

If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.

Declare previous employment details, if any, in Form No. 11 to the employer.

On becoming a member of the Schemes file details in Form No. 2 ( family particulars/ nominations) through the employer.

Rate of contribution payable by a member shall be @ 12% of his emoluments.

A member can contribute statutarily over and above the prescribed rate.

For Existing Members:

Enrolment:

Any change in the family status, such as, -

marriage of the member.

additions / deletion in the family.

Legal adoption of the children.

Change of nominee, is to be filed in Form No. 2 through the employer.

In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.

A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.
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